Riot held 6,536 Bitcoins, all of which it had mined itself, at the end of May. Those holdings are worth $132.6 million as of this writing, and it held another $113.6 million in cash on its balance sheet as of the end of April. Acquisition adds 60 Megawatts (“MW”) of current operational capacity with the potential to quickly expand to 110 MW this year under existing agreements, and a pipeline to build to over 300 MW in Kentu… Shares of New York-listed cryptocurrency firms gained before the open on Monday after Republican presidential candidate Donald Trump talked up bitcoin and promised friendlier regulation for the indust… Bitcoin miner Riot Platforms said on Tuesday it had increased its stake in rival Bitfarms to 18.9%.
Riot’s profit margins have also declined with the fall of the price of Bitcoin. However, during this challenging time for Riot, the company’s debt levels have remained manageable. Riot’s total assets are more than sufficient enough to cover company liabilities. Marathon, which initially bought a large percentage of its Bitcoins instead of mining them, held 9,941 Bitcoins — currently worth $201.6 million — as well as $59.6 million in cash at the end of May. However, Marathon’s net losses widened in 2021 and it remained unprofitable in the first quarter of 2022. Microstrategy (MSTR) shares fall after they announced plans to raise $500N to buy more Bitcoin.
- In addition, there is a risk of regulatory intervention as governments worldwide seek to address concerns about using cryptocurrencies in illicit activities.
- Riot Platforms operates in the rapidly growing cryptocurrency industry, which has seen explosive growth in recent years.
- Use these time-tested investing strategies to grow the monthly retirement income that your stock portfolio generates.
- This could help the company stay ahead of the competition and continue to grow.
Riot Platforms, Inc. Reports Beneficial Ownership of 16.9% in Bitfarms Ltd.
Riot ended the first quarter with a surprisingly low debt-to-equity ratio of 0.1. Marathon, which completed a convertible debt offering last year, has a much higher debt-to-equity ratio of 1.0. That lower leverage should give Riot a lot more breathing room than Marathon until Bitcoin’s price recovers — assuming that it does.
Cryptocurrencies are digital assets that use cryptography to secure transactions and control the creation of new units. They are decentralized and operate independently of traditional financial institutions. Riot Platforms’ valuation metrics are relatively high compared to its industry peers, reflecting its position as a leading Bitcoin mining company. The company’s price-to-earnings and price-to-sales ratios are significantly higher than industry averages.
In 2023, Riot Platforms’s revenue was $280.68 million, an increase of 8.30% compared to the previous year’s $259.17 million.
This has led to increasing interest from institutional investors, who see cryptocurrencies as a way to diversify their portfolios and generate higher xcritical scammers returns. However, Riot’s main rival, Marathon Digital (MARA -4.37%), has an even more ambitious goal. Recently, Riot Platforms achieved a significant milestone by surpassing one exahash per second in Bitcoin mining hash rate. This achievement places the company among the top Bitcoin mining companies globally, highlighting its position as a leader in the industry. Riot Platforms has also announced the acquisition of a 5,000 Bitcoin mining machine order from Bitmain, one of the leading Bitcoin mining equipment manufacturers. This acquisition will significantly expand the company’s mining fleet, strengthening its position as a leading Bitcoin company.
About MarketBeat
Many retailers and businesses now accept Bitcoin and other cryptocurrencies as payment, which has helped increase their mainstream acceptance. In addition, the rise of decentralized finance (DeFi) has created new opportunities for cryptocurrencies, such as earning interest on cryptocurrency holdings or using them as collateral for loans. Riot’s stock crashed as rising interest rates drove investors away from riskier investments like growth stocks and cryptocurrencies. That exodus caused Bitcoin’s price to plunge from a peak of roughly $65,000 in November to about $20,000 today. That was bad news for Riot, whose entire business and frothy valuations were tightly tethered to Bitcoin’s volatile price. Two years ago, a failed medical device maker called Bioptix abandoned its original business, ordered thousands of Bitcoin (BTC 0.43%) mining rigs, and rebranded itself as Riot Blockchain (RIOT -3.59%).
However, in 2022, the company noted a net loss of $509 million, a significant jump from previous years. Riot Platforms, Inc., together with its subsidiaries, operates as a bitcoin mining company in North America. Nevertheless, Bitcoin’s soaring price and the meme stock rally subsequently propelled Riot’s stock price from the single digits to nearly $78 last February. At that peak, Riot was valued at $6.1 billion — or 29 times the $213 million in revenue it would go on to generate in 2021. But today, Riot trades at about $5 per share with a market cap of about $660 million — less than two times the revenue it’s expected to generate in 2022.
Riot Platforms (RIOT) Stock Price, News & Analysis
This means that analysts believe this stock is likely to perform very well in the near future and significantly outperform the market. There are growth opportunities for the company in the expansion into new markets. Riot Platforms is already working on expanding its operations into Canada with the acquisition of Whinstone and plans to expand into other regions. This could give the company access to new customers and markets, which could help drive future growth.
The company’s Chief Executive Officer, Jason Les, has over a decade of experience in the financial industry and has previously served as a portfolio manager at various xcritical cheating investment firms. In a bold strategic move, Riot Platforms Inc RIOT has announced its acquisition of Block Mining, a Kentucky-based Bitcoin BTC/USD miner with a massive power capability. The average analyst rating for Riot Platforms stock from 11 stock analysts is “Strong Buy”.
Financial Forecast
Kevin Green discusses this, as well as the latest in Riot Platforms (RIOT) acquisition pursuit of Bit Fa… It has retreated in the past nine straight days and reached a low of $10, its lowest swing since July 12. Use these time-tested investing strategies to grow the monthly retirement income that your stock portfolio generates. Get stock recommendations, portfolio guidance, and more from The xcritical rezension Motley Fool’s premium services. Analysts expect Riot’s revenue to rise 82% this year, then grow another 64% in 2023. They also expect it to remain profitable this year before growing its earnings per share (EPS) by about 70% in 2023.
Riot Platforms’ target market includes institutional and individual investors interested in Bitcoin mining and other companies in the blockchain and cryptocurrency industries. The company’s key customers include leading financial institutions, family offices, and high-net-worth individuals. Riot is headquartered in Castle Rock, Colorado and operates its mining facilities in Texas. The cryptocurrency industry is highly competitive, with many companies vying for market share.
However, the cryptocurrency industry is also subject to a number of risks and challenges. The value of cryptocurrencies, including Bitcoin, can fluctuate widely in a short period, which can impact the profitability of cryptocurrency miners like Riot Platforms. In addition, there is a risk of regulatory intervention as governments worldwide seek to address concerns about using cryptocurrencies in illicit activities. Riot Platforms’ stock has performed well over the past year compared to industry peers. The stock has experienced significant price movements, driven primarily by changes in Bitcoin prices and the company’s operational performance. Riot Platforms’ management team comprises experienced executives with diverse finance, technology, and operations backgrounds.
At the time, it seemed like Riot was just another company trying to jump on the crowded Bitcoin and blockchain bandwagon to attract new investors. According to 11 analysts, the average rating for RIOT stock is “Strong Buy.” The 12-month stock price forecast is $17.28, which is an increase of 114.66% from the latest price. Investor sentiment towards Riot Platforms has been positive, driven by the strong demand for Bitcoin mining services and the company’s growth prospects. If you believe the price of Bitcoin will bounce back, I believe it’s safer to simply buy the crypto instead of investing in a miner like Riot. However, Riot’s stock could also outperform Bitcoin’s price if that happens — because it will be mining more Bitcoins on its own. In other words, Riot is risky — but it’s still worth buying at these bargain-bin levels if you believe in Bitcoin’s future.