Riot Platforms Targeted by Kerrisdale Capital's Short Sell Report: Details (UPDATED)
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 05 2024
0mins
Should l Buy RIOT?
Source: Benzinga
- Riot Platforms, Inc RIOT Shares: Trading lower after Kerrisdale Capital's report expressing a bearish view on the stock due to its focus on energy arbitrage and stock issuance over generating shareholder value through crypto mining.
- Concerns Raised by Analyst: 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.
- Issues Highlighted: Riot has never shown positive cash flow or decent returns, with excessive management compensation and frequent dilution of shares.
- Texas Regulatory Environment: Texas' lenient regulatory environment for Bitcoin miners is changing due to concerns over environmental impact, leading to increased oversight and legislation that could affect financial incentives.
- Response from Riot Platforms: Riot disagreed with the negative characterization, stating confidence in their growth plans and financial performance, while the analyst suggested better Bitcoin exposure options exist through low-fee ETFs and ETPs.
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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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