Kerrisdale Capital Hits Riot Platforms With Short Sell Report: Details
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 05 2024
0mins
Should l Buy RIOT?
Source: Benzinga
- Riot Platforms, Inc Report: Kerrisdale Capital’s Founder expressed a bearish view on Riot Platforms due to its focus on energy arbitrage and stock issuance over generating shareholder value through crypto mining.
- Concerns Raised: Bitcoin mining is criticized for being a poor business model for public companies due to unpredictable revenue, high capital requirements, fierce competition, commodity nature of the product, and regulatory scrutiny.
- Management Issues: Adrangi highlighted that Riot has never shown positive cash flow or decent returns, with excessive management compensation and frequent dilution.
- Texas Regulatory Environment: Despite Texas' appeal to Bitcoin miners for cheap energy and lenient regulations, concerns over environmental impact are leading to increased oversight and legislation that could affect profitability.
- Investor Recommendations: The analyst suggested that investors have better options for Bitcoin exposure through low-fee ETFs and ETPs, as Riot Platforms lost 16% in the last year.
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Analyst Views on RIOT
Wall Street analysts forecast RIOT stock price to rise
9 Analyst Rating
9 Buy
0 Hold
0 Sell
Strong Buy
Current: 14.330
Low
20.00
Averages
27.00
High
42.00
Current: 14.330
Low
20.00
Averages
27.00
High
42.00
About RIOT
Riot Platforms, Inc. is a Bitcoin mining and digital infrastructure company. The Company has Bitcoin mining operations in central Texas and Kentucky, and electrical engineering and fabrication operations in Denver, Colorado, and Houston, Texas. It operates a Bitcoin-driven infrastructure platform. Its segments include Bitcoin Mining and Engineering. The Bitcoin Mining segment is engaged in Bitcoin mining activities. The Engineering segment designs and manufacturers power distribution equipment and custom engineered electrical products. This segment also provides electricity distribution product design, manufacturing, and installation services primarily focused on large-scale commercial and governmental customers and serves clients across a range of markets including data center, power generation, utility, water, industrial, and alternative energy. It is also focused on developing a portion of its power capacity for artificial intelligence (AI)/ high-performance computing (HPC) uses.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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