Riot Platforms Inc

Riot Platforms, Inc. (NASDAQ: RIOT) is a Bitcoin mining and digital infrastructure company. The Company has Bitcoin mining operations in central Texas and Kentucky, and electrical switchgear engineering and fabrication operations in Denver, Colorado. It operates a Bitcoin-driven infrastructure platform. Its segments include Bitcoin Mining and Engineering.

Recent Business and Financial Updates

• Riot Platforms, Inc. Reports Exceptional 2024 Financial and Operational Performance: Riot Platforms, Inc. (NASDAQ: RIOT), a preeminent entity in vertically integrated Bitcoin mining, announced its financial results for the full year ended December 31, 2024, on February 24, 2025, highlighting a year of remarkable achievement. The Company reported a record total revenue of USD 376.7 million, representing a 34% increase from USD 280.7 million in 2023, as detailed in the accompanying presentation materials available on Riot’s website. Jason Les, CEO of Riot, emphasized the significance of these results, noting, “Riot had a remarkable year in 2024, generating record revenue of USD 376.7 million and net income of USD 109.4 million,” underscoring the Company’s resilience amidst the Bitcoin network’s halving in April 2024 and a 67% rise in global hash rate, while achieving a record adjusted EBITDA of USD 463.2 million through its Bitcoin retention strategy.
• Key Financial and Operational Milestones: The fiscal year 2024 showcased Riot’s strategic growth, with Bitcoin mining revenue surging to USD 321.0 million from USD 189.0 million in 2023, driven by elevated Bitcoin prices and enhanced operational hash rates, despite challenges from the halving event and increased network difficulty. The Company produced 4,828 Bitcoin, a decrease from 6,626 in 2023, reflecting the halving’s impact, with the average cost to mine Bitcoin, excluding depreciation, rising to USD 32,216 from USD 3,831, primarily due to a 53% drop in power credits (USD 33.7 million in 2024 versus USD 71.2 million in 2023) and a 67% increase in global hash rate. Engineering revenue declined to USD 38.5 million from USD 64.3 million, attributed to supply chain delays in a major government contract, yet Riot maintained a robust financial position with USD 439.1 million in working capital, including USD 277.9 million in cash and USD 134.3 million in marketable securities.
  

• Strategic Growth Initiatives and Operational Enhancements: Riot’s 2024 performance was bolstered by significant growth initiatives, including the energization of its Corsicana Facility, a 1-gigawatt Bitcoin mining site poised to become the world’s largest, and the acquisitions of Block Mining and E4A Solutions, enhancing its engineering capabilities and mining operations. These efforts, combined with an innovative power strategy achieving an all-in cost of 3.4 cents per kilowatt hour, enabled Riot to mine Bitcoin at a competitive cost, reinforcing its position as a low-cost producer. The Company’s operational hash rate reached 31.5 exahashes per second (EH/s) by year-end, demonstrating substantial capacity expansion and operational efficiency, despite the Bitcoin halving’s reduction in block subsidies.
• Bitcoin Treasury and Yield Strategy Advancements: A pivotal component of Riot’s 2024 success was its Bitcoin treasury strategy, which saw the Company retain its Bitcoin production, culminating in holdings of 17,722 unencumbered Bitcoin by December 31, 2024, valued at approximately USD 1.65 billion based on a Bitcoin price of USD 93,354. This represented a 141% increase from the prior year, delivering a 39% Bitcoin yield for shareholders, a testament to Riot’s decision to hold rather than sell its mined Bitcoin. Furthermore, Riot advanced its Bitcoin yield strategy by closing an inaugural convertible senior note offering in December 2024, raising USD 579 million in net proceeds to acquire an additional 5,784 Bitcoin, solidifying its financial strength and commitment to maximizing shareholder value moving forward.
• Outlook and Expansion into AI/HPC: Looking ahead to 2025, Riot Platforms is strategically positioning itself for growth beyond Bitcoin mining, recently engaging financial advisors to explore opportunities in the artificial intelligence and high-performance computing (AI/HPC) sectors, leveraging the unutilized 600 megawatts of power capacity at its Corsicana Facility near Dallas, Texas. With a total facility capacity of one gigawatt, Riot views this readily available power as a rare asset, accelerating discussions with potential partners to optimize the value of its infrastructure and assets. This forward-looking approach, coupled with its industry-leading financial position and operational scalability, positions Riot to capitalize on emerging opportunities, ensuring long-term value creation for shareholders in a dynamic technological landscape.
• Financial and Operational Resilience Amid Challenges: Riot’s 2024 results underscore its resilience in navigating significant industry challenges, including the Bitcoin halving, increased global hash rates, and supply chain constraints affecting engineering revenue. The Company’s ability to generate net income of USD 109.4 million, a stark improvement from a USD 49.5 million loss in 2023, and maintain a deployed hash rate of 31.5 EH/s, despite missing earlier hash rate targets, highlights its operational adaptability and strategic foresight. However, the elevated cost to mine Bitcoin and reduced power credits signal ongoing risks, such as market volatility and regulatory uncertainties, which Riot must manage to sustain its growth trajectory, as it continues to innovate in Bitcoin mining and diversify into AI/HPC sectors.

Technical Observation (on the daily chart):

The Relative Strength Index (RSI) over a 14-day period stands at a value of 35.55, currently recovering from the oversold zone, with expectations of a consolidation or an upward momentum from the current support levels of USD 8.50- USD 9.00. Additionally, the stock's current positioning is below both the 50-period SMA and 200-period SMA, which may serve as dynamic short to medium-term resistance levels.

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Speculative Buy’ rating has been given to Riot Platforms, Inc. (NASDAQ: RIOT) at the closing market price of USD 9.28, as of February 28, 2025. 

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is February 28, 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.