Stock of the Day

January 22, 2024

Riot Platforms (RIOT)

$19.00
+$0.01 (+0.1%)
Market Cap: $7.13B

About Riot Platforms

Riot Platforms, Inc., together with its subsidiaries, operates as a bitcoin mining company in North America. The company operates through three segments: Bitcoin Mining, Data Center Hosting, and Engineering. It also provides co-location services for institutional-scale bitcoin mining companies; critical infrastructure and workforce for institutional-scale miners to deploy and operate their miners; operation of data centers; and maintenance/management of computing capacity. In addition, the company engages in the design and manufacturing of power distribution equipment and custom engineered electrical products; and electricity distribution product design, manufacture, and installation services primarily focused on large-scale commercial, and governmental customers, as well as a range of markets, including data center, power generation, utility, water, industrial, and alternative energy. The company was formerly known as Riot Blockchain, Inc. Riot Platforms, Inc. was incorporated in 1998 and is based in Castle Rock, Colorado.

Today's Trend

Riot Platforms, Inc. (NASDAQ: RIOT) is facing mixed signals. Investor enthusiasm over its shift toward AI data-center infrastructure is being offset by continuing losses, downward earnings revisions and the sale of a substantial amount of Bitcoin to fund operations.

  • Riot’s reported 20-year, $9.1 billion Anthropic data-center lease at its Rockdale facility reinforces its strategy of transitioning from volatile cryptocurrency mining toward potentially higher-margin AI and high-performance computing infrastructure. The deal could improve long-term revenue visibility and help diversify the company’s balance sheet. Riot Platforms Re-Wires the Ledger for a $9B AI Power Play
  • HC Wainwright continues to rate RIOT “Buy” with a $40 price target, implying substantial upside from recent trading levels. The bullish view appears to be based largely on Riot’s AI infrastructure opportunity rather than near-term mining profitability. Riot Platforms analyst coverage
  • The latest broker coverage describes Riot as favorably viewed by analysts, but investors should note that a positive rating does not eliminate the company’s considerable earnings and cryptocurrency-related risks. Riot Platforms broker ratings
  • HC Wainwright reduced EPS forecasts across multiple 2026–2027 periods, including FY2026 to a $2.83 loss and FY2027 to a $1.32 loss. Northland also lowered its FY2026 estimate to a $2.79 loss, signaling weaker near-term profitability than previously expected. Riot Platforms earnings estimate revisions
  • Riot reportedly sold 4,300 Bitcoin during the second quarter to fund operations. While the sale provides liquidity, it reduces exposure to potential Bitcoin appreciation and may raise concerns about the cash demands of the mining business. Riot Platforms sells 4,300 Bitcoin
  • Riot’s recent quarterly results showed a $237.2 million net loss, while EPS missed expectations. The continuing losses and negative profitability metrics make the AI pivot important, but also highlight execution risk before the new infrastructure business contributes meaningfully.
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