Riot Platforms (RIOT) AI Stock Analysis

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Riot Platforms

(NASDAQ:RIOT)

Rating:52Neutral

Price Target:

$11.00

▼(-10.20% Downside)

Riot Platforms' overall score is driven by financial challenges, including profitability and cash flow issues, despite strong operational efficiency. Technical indicators suggest caution, while strategic expansions and strong liquidity provide potential for future growth. The expanded credit agreement with Coinbase and positive analyst sentiment offer additional support.

Positive Factors

Operational Efficiency

Riot's operational efficiency improved significantly, with a hash rate realization of 87%, up from 61% a year ago.

Strategic Expansion

Riot is developing a new data center business and has made strategic hires and land acquisitions to support this expansion, indicating a forward-looking growth strategy.

Negative Factors

Earnings Miss

There was a miss on Adjusted EBITDA excluding fair value adjustments on bitcoin.

Financial Performance

Revenue and cash operating profit declined modestly due to seasonal factors impacting Bitcoin production.

Riot Platforms (RIOT) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$4.53B

Dividend YieldN/A

Average Volume (3M)36.58M

Price to Earnings (P/E)24.4

Beta (1Y)2.48

Revenue Growth93.46%

EPS Growth-166.22%

CountryUS

Employees783

SectorFinancial

Sector Strength71

IndustryFinancial - Capital Markets

Share Statistics

EPS (TTM)0.57

Shares Outstanding369,623,170

10 Day Avg. Volume26,223,900

30 Day Avg. Volume36,578,967

Financial Highlights & Ratios

PEG Ratio-0.11

Price to Book (P/B)0.90

Price to Sales (P/S)7.48

P/FCF Ratio-1.85

Enterprise Value/Market Cap1.06

Enterprise Value/Revenue8.86

Enterprise Value/Gross Profit96.25

Enterprise Value/Ebitda10.36

Forecast

1Y Price Target

$18.00

Price Target Upside46.94% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering15

Riot Platforms Business Overview & Revenue Model

Company DescriptionRiot Platforms, Inc. is a leading cryptocurrency mining company based in North America, primarily focused on Bitcoin mining. The company operates large-scale mining operations, leveraging advanced technology and strategic partnerships to enhance its mining capabilities. Riot is dedicated to sustainable mining practices and is actively involved in the development and deployment of renewable energy solutions within the cryptocurrency sector.

How the Company Makes MoneyRiot Platforms generates revenue primarily through the mining of Bitcoin. The company operates a large fleet of ASIC (Application-Specific Integrated Circuit) miners, which are specialized hardware designed to efficiently solve the cryptographic puzzles required for Bitcoin mining. The revenue model is driven by the number of Bitcoins mined, which fluctuates based on the mining difficulty and the Bitcoin price. Additionally, Riot has diversified its revenue streams by engaging in Bitcoin sales, where mined Bitcoins are sold on the open market to realize profits. The company also benefits from strategic partnerships with energy providers to secure low-cost electricity, which is a critical factor in its profitability. Furthermore, Riot has made investments in infrastructure and technology to improve operational efficiency, thereby enhancing its overall margins.

Riot Platforms Key Performance Indicators (KPIs)

Any

Average Cost to Mine Bitcoin

Average Cost to Mine Bitcoin
Shows the cost efficiency of mining operations, crucial for understanding profitability margins and how well the company can withstand fluctuations in Bitcoin prices.

Chart InsightsRiot Platforms' average cost to mine Bitcoin surged dramatically in 2024, reflecting increased operational expenses. Despite this, the latest earnings call highlights significant operational improvements, such as a 90% mining uptime and increased Bitcoin production. Strategic acquisitions and enhanced hash rate capacity are expected to mitigate rising costs. However, financial losses remain a concern due to Bitcoin price declines and high depreciation costs. Riot's focus on AI/HPC data center development and prudent financial management could offer long-term growth potential despite current challenges.

Data provided by:

Main Street Data

Riot Platforms Earnings Call Summary

Earnings Call Date:Jul 31, 2025

(Q2-2025)

% Change Since: -8.65%|

Next Earnings Date:Nov 11, 2025

Earnings Call Sentiment Neutral

Riot Platforms demonstrated strong strategic positioning in expanding their data center business, maintaining robust financials, and improving hash rate efficiency. However, the company faced challenges with decreased Bitcoin production and increased direct mining costs, impacting revenue negatively.

Q2-2025 Updates

Positive Updates

Data Center Expansion and Leadership

Riot Platforms announced the hiring of Jonathan Gibbs as Chief Data Center Officer, signaling a significant step in expanding their data center capabilities. The company has acquired additional land around its Corsicana site, increasing its footprint to 858 acres to fully utilize power access.

Strong Financial Position

Riot maintains a strong balance sheet with over 19,000 Bitcoin and $330 million in cash, representing $2.4 billion in liquidity. The company has also secured a $200 million Bitcoin collateralized financing facility with Coinbase.

Increased Hash Rate Efficiency

Riot increased its self-mining hash rate by 5% to 35.4 EH/s. The company's hash rate utilization improved from 61% to 87% year-over-year, demonstrating strategic focus on operational efficiency.

Record Order Backlog for Engineering Business

The engineering business achieved a record in order bookings, bringing the backlog to $118.7 million, setting the stage for a strong second half of 2025.

Negative Updates

Decrease in Bitcoin Production and Revenue

Riot produced 1,426 Bitcoin in the second quarter, a decrease from 1,530 in the previous quarter. Total revenue decreased by 5% quarter-over-quarter to $153 million due to lower Bitcoin production.

Increased Direct Costs in Bitcoin Mining

Direct costs to mine Bitcoin increased to $48,992 per Bitcoin, with power costs accounting for 77% of total direct costs. Property tax assessments contributed to a rise in non-power costs.

Company Guidance

During Riot Platforms' second quarter 2025 earnings call, the company provided guidance on several key metrics and strategic initiatives. Riot increased its self-mining hash rate from 33.7 EH/s to 35.4 EH/s, a 5% increase, and produced 1,426 Bitcoin. Total quarterly revenue was $153 million, with a gross profit of $70.3 million and a gross margin of 46%. The company reported a net income of $219.5 million, bolstered by a $470.8 million mark-to-market gain due to Bitcoin price appreciation. Riot ended the quarter with over 19,000 Bitcoin and $330 million in cash, representing $2.4 billion in liquidity. Non-GAAP adjusted EBITDA was $495.3 million. The company is advancing its data center capabilities with the hiring of Jonathan Gibbs as Chief Data Center Officer and is developing a 600-megawatt substation at Corsicana, targeting a 40 EH/s hash rate by the end of 2025. Riot is focusing on maximizing the value of its megawatts, transitioning power capacity towards data centers, and strategically expanding its power assets.

Riot Platforms Financial Statement Overview

Summary

Riot Platforms has shown strong revenue growth, increasing by 21.8% in the TTM. However, profitability and cash flow are significant concerns, with negative EBIT and net income margins, and negative operating cash flow. The balance sheet is a strong point, with a solid equity position and low debt, providing some financial stability despite operational losses.

Income Statement

Neutral

Riot Platforms has shown strong revenue growth with a significant increase from $376.7M to $458.7M (21.8%) in the TTM, which is positive. However, the company is struggling with profitability as evidenced by negative EBIT and net income margins in the TTM (-61.9% and -86.9% respectively). This indicates high operational costs or inefficiencies. The gross profit margin at 31.8% is reasonable, but overall, profitability is a concern given the negative net profit margin.

Balance Sheet

Positive

The balance sheet shows a solid equity position with an equity ratio of 79.2% in the TTM, indicating financial stability. The debt-to-equity ratio is low at 0.01, reflecting prudent financial management regarding leverage. However, the negative net income affects the return on equity, which is also negative. The company's assets have grown, but the net loss impacts overall financial health.

Cash Flow

Neutral

Operating cash flow is negative at -$319.3M in the TTM, indicating cash outflows from core operations. Free cash flow is also negative, but an improvement in cash from financing activities provides liquidity. The free cash flow to net income ratio is not favorable due to negative values, highlighting cash constraints. Despite these challenges, the company has managed to secure financing to support liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	541.72M	376.66M	280.68M	259.17M	213.24M	12.08M
Gross Profit	49.88M	113.90M	26.34M	65.47M	131.15M	5.83M
EBITDA	463.30M	324.18M	-2.79M	25.37M	11.71M	-7.81M
Net Income	-94.84M	109.40M	-49.47M	-509.55M	-7.93M	-12.67M
Balance Sheet
Total Assets	4.29B	3.94B	2.05B	1.32B	1.53B	280.15M
Cash, Cash Equivalents and Short-Term Investments	392.76M	412.13M	908.35M	339.75M	482.66M	235.01M
Total Debt	869.52M	613.16M	21.34M	22.25M	13.44M	0.00
Total Liabilities	989.49M	791.62M	163.06M	168.52M	173.62M	3.08M
Stockholders Equity	3.30B	3.14B	1.89B	1.15B	1.36B	277.07M
Cash Flow
Free Cash Flow	-1.48B	-1.52B	-391.05M	-352.33M	-508.36M	-52.42M
Operating Cash Flow	-508.07M	-255.05M	33.09M	530.00K	-86.38M	-11.15M
Investing Cash Flow	-1.03B	-1.51B	-414.77M	-354.86M	-490.33M	-32.83M
Financing Cash Flow	1.39B	1.52B	748.52M	272.35M	665.64M	259.92M

Riot Platforms Technical Analysis

Technical Analysis Sentiment

Positive

Last Price12.25

Price Trends

50DMA

11.64

Positive

100DMA

9.76

Positive

200DMA

10.46

Positive

Market Momentum

MACD

-0.14

Positive

RSI

51.86

Neutral

STOCH

59.97

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RIOT, the sentiment is Positive. The current price of 12.25 is below the 20-day moving average (MA) of 12.75, above the 50-day MA of 11.64, and above the 200-day MA of 10.46, indicating a neutral trend. The MACD of -0.14 indicates Positive momentum. The RSI at 51.86 is Neutral, neither overbought nor oversold. The STOCH value of 59.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RIOT.

Riot Platforms Risk Analysis

Riot Platforms disclosed 54 risk factors in its most recent earnings report. Riot Platforms reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Riot Platforms Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CLSK	70 Outperform	$2.80B	11.33	17.09%	―	84.66%	―
Sector *	68 Neutral	$17.53B	11.67	10.43%	3.82%	9.93%	1.66%
RIOT	52 Neutral	$4.53B	24.36	-3.23%	―	93.46%	-166.22%
BMBL	50 Neutral	$631.34M	―	-75.71%	―	-5.06%	-2318.18%
ANY	47 Neutral	$16.67M	―	-39.10%	―	-56.72%	49.76%
BTDR	44 Neutral	$2.71B	―	-32.09%	―	―	―

* Financial Sector Average

Performance Comparison

RIOT

Riot Platforms

12.25

4.26

53.32%

ANY

Sphere 3D

0.59

-0.25

-29.76%

CLSK

Cleanspark

9.95

-1.89

-15.96%

BMBL

Bumble

6.07

0.07

1.17%

BTDR

Bitdeer Technologies

13.78

7.32

113.31%

Riot Platforms Corporate Events

Private Placements and FinancingBusiness Operations and Strategy

Riot Platforms Expands Credit Agreement with Coinbase

Positive

May 23, 2025

On May 19, 2025, Riot Platforms, Inc. entered into an amended and restated credit agreement with Coinbase Credit, Inc., increasing the principal amount from $100 million to $200 million and extending the availability period. This agreement aims to enhance Riot Platforms’ financial flexibility and operations by allowing more borrowings and securing obligations with financial assets, including bitcoin and cash.

The most recent analyst rating on (RIOT) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on Riot Platforms stock, see the RIOT Stock Forecast page.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 11, 2025