Riot Platforms Stock Declines Amid Bitcoin Price Drop
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2d ago
0mins
Source: Benzinga
- Bitcoin Price Volatility: Bitcoin's sharp 2.98% decline to $82,757 over 24 hours has directly impacted cryptocurrency mining valuations, causing Riot's stock to drop 8.01% during Friday's trading session.
- Strategic Acquisition: Riot fully acquired approximately 200 acres at its Rockdale facility in Milam County, Texas, for $96 million, funded entirely through Bitcoin sales, which not only strengthens its asset base but also lays the groundwork for future expansion.
- Data Center Lease Agreement: The company signed a 10-year lease with AMD for a data center covering an initial 25 megawatts of critical IT load, projected to generate approximately $311 million in revenue, significantly enhancing Riot's revenue potential and market competitiveness.
- Earnings Outlook: Investors are looking forward to the earnings report on February 23, with an estimated loss of 26 cents per share (down from $0.44 YoY) and revenue expected at $159.09 million (up from $142.56 million YoY), indicating growth potential despite current challenges.
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Analyst Views on RIOT
Wall Street analysts forecast RIOT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for RIOT is 27.19 USD with a low forecast of 20.00 USD and a high forecast of 42.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Analyst Rating
16 Buy
0 Hold
0 Sell
Strong Buy
Current: 16.970
Low
20.00
Averages
27.19
High
42.00
Current: 16.970
Low
20.00
Averages
27.19
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.
Riot Platforms Stock Declines Amid Bitcoin Price Drop
- Bitcoin Price Volatility: Bitcoin's sharp 2.98% decline to $82,757 over 24 hours has directly impacted cryptocurrency mining valuations, causing Riot's stock to drop 8.01% during Friday's trading session.
- Strategic Acquisition: Riot fully acquired approximately 200 acres at its Rockdale facility in Milam County, Texas, for $96 million, funded entirely through Bitcoin sales, which not only strengthens its asset base but also lays the groundwork for future expansion.
- Data Center Lease Agreement: The company signed a 10-year lease with AMD for a data center covering an initial 25 megawatts of critical IT load, projected to generate approximately $311 million in revenue, significantly enhancing Riot's revenue potential and market competitiveness.
- Earnings Outlook: Investors are looking forward to the earnings report on February 23, with an estimated loss of 26 cents per share (down from $0.44 YoY) and revenue expected at $159.09 million (up from $142.56 million YoY), indicating growth potential despite current challenges.
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