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1. Company Snapshot

1.a. Company Description

Riot Blockchain, Inc., together with its subsidiaries, focuses on bitcoin mining operations in North America.It operates through Bitcoin Mining, Data Center Hosting, and Electrical Products and Engineering segments.As of December 31, 2021, it operated approximately 30,907 miners.


Riot Blockchain, Inc.was incorporated in 2000 and is headquartered in Castle Rock, Colorado.

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1.b. Last Insights on RIOT

Riot Platforms' recent performance was driven by strong Q3 earnings, beating estimates with $0.26 per share, and a significant surge in Bitcoin prices, which rose to $110,000. The company's infrastructure growth elevated its Bitcoin reserves beyond $2 billion. Additionally, Riot's expansion into AI-fueled data centers beyond mining and its large Bitcoin holdings position it for potential growth. The company's operational update and analyst price target increases also contributed to its performance. Furthermore, Riot's pivot to AI, following industry deals, and its HODL strategy, support a bullish outlook.

1.c. Company Highlights

2. Riot Platforms' Q3 2025 Earnings: A Strong Performance and a Clear Path Forward

Riot Platforms reported a robust financial performance in Q3 2025, with total revenue reaching $180.2 million, an 18% increase quarter-over-quarter. The company's net income stood at $104.5 million, while non-GAAP adjusted EBITDA was $197.2 million. Earnings per share (EPS) came in at $0.26, significantly beating estimates of -$0.19. The profitability of Riot's Bitcoin mining operations was evident, with a gross profit of $95.7 million and a 59% gross profit margin. Revenue from Bitcoin mining operations was $160.8 million, with a total direct cost per Bitcoin of $46,324.

Publication Date: Nov -03

📋 Highlights
  • Data Center Capacity Expansion:: Initiating 112 MW of critical IT capacity at Corsicana, with total campus capacity of 672 MW.
  • Financial Performance:: Q3 revenue rose 18% to $180.2M, net income $104.5M, and non-GAAP adjusted EBITDA of $197.2M.
  • Engineering Cost Savings:: Cumulative $23M in CapEx savings from ESS Metron and E4A Solutions acquisitions.
  • Bitcoin Holdings:: Ended Q3 with 19,287 Bitcoin ($2.2B market value) and produced 1,406 Bitcoin in the quarter.
  • Operational Efficiency:: SG&A remained flat over four quarters despite 110% YoY revenue growth.

Operational Highlights

Riot made significant progress on its data center development plans, initiating the Core & Shell development of the first two buildings at its Corsicana data center campus, representing 112 megawatts of critical IT data center capacity. The company has secured long lead equipment and plans to mobilize construction beginning in Q1 2026. This development is expected to position Riot in front of high-quality tenants and give them more certainty on delivery timelines, as stated by Jason Les, CEO, "It's not a shift in strategy but rather an unveiling of their approach to owning and operating build-to-suit data centers."

Data Center Development and Engineering Business

Riot's engineering business, built through the acquisitions of ESS Metron and E4A Solutions, provides significant advantages in data center development. The company benefits from direct control over long-lead critical items, deep supply chain visibility, and lower total cost of ownership. The business has realized approximately $23 million in cumulative CapEx savings on equipment purchases to date. The company's data center design is standardized and replicable, allowing for efficiency in procuring equipment and scheduling with contractors.

Valuation and Outlook

With a P/E Ratio of 41.86 and an EV/EBITDA of 10.67, the market is pricing in significant growth expectations. Analysts estimate next year's revenue growth at 14.1%. The company's strong financial position, with around $400 million in cash and a large Bitcoin balance, provides a solid foundation for funding its development plans. Riot's focus on high-quality credit tenants and its ability to secure power at scale will be key drivers of future growth.

Conclusion on Financial Health

The company's operating model continues to scale efficiently, with SG&A remaining relatively flat over the past four quarters, while revenues have grown by over 110% year-over-year. Riot's ROE stands at 5.09%, and its Net Debt / EBITDA is -0.07, indicating a healthy financial position. The company's commitment to building a strong foundation for its data center business, with a focus on expanding its pipeline and securing power at scale, is expected to drive long-term growth.

3. NewsRoom

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GraniteShares Expands YieldBOOST™ Lineup with Two New ETFs Targeting RIOT Platforms and Hims & Hers Health (RTYY and HMYY)

Dec -02

Source: globenewswire.com

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Dow Jones Today: Stock Indexes Close Lower to Begin December Trading; Big Tech, Crypto-Tied Shares Drop Amid Risk-Off Sentiment

Dec -02

Source: investopedia.com

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Coinbase vs. Riot Platforms: Which Bitcoin-Exposed Crypto Play Wins?

Nov -28

Source: zacks.com

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Stock Market Live November 28: S&P 500 (SPY) Running Higher on Black Friday

Nov -28

Source: 247wallst.com

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First Look: BHP ends Anglo bid, Novo miss, Black Friday

Nov -24

Source: gurufocus.com

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Benzinga Bulls And Bears: Nvidia, Webull, Netflix — And Tech Stocks Face Worst Sell-Off Since April

Nov -22

Source: feeds.benzinga.com

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IREN, Riot, Cipher, Other HPC Stocks Climb After Nvidia's Blockbuster Q3 Report

Nov -19

Source: benzinga.com

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Here Are Wednesday's Top Wall Street Analyst Research Calls: DoorDash, Freeport-McMoRan, GitLab, Home Depot, Medtronic, Molson-Coors, and More

Nov -19

Source: 247wallst.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (17.27%)

6. Segments

Bitcoin Mining

Expected Growth: 11.27%

Riot Blockchain's 11.27% growth in Bitcoin mining is driven by increased hash rate capacity, improved mining efficiency, and a favorable cryptocurrency market. The company's strategic expansion into new mining facilities, upgraded infrastructure, and reduced energy costs also contribute to its growth. Additionally, the increasing adoption of Bitcoin and rising prices have boosted mining profitability, further fueling Riot's growth.

Engineering

Expected Growth: 31.47%

Riot Blockchain's 31.47% growth in Engineering is driven by increasing demand for cryptocurrency mining, strategic expansion into new markets, and investments in research and development to improve mining efficiency. Additionally, the company's focus on reducing energy costs and enhancing its data center infrastructure has contributed to its growth.

Data Center Hosting

Expected Growth: 25.6%

Riot Blockchain's 25.6% growth in Data Center Hosting is driven by increasing demand for cryptocurrency mining, strategic expansion into new facilities, and improved operational efficiency. Additionally, the company's focus on providing low-cost, high-performance computing solutions and its ability to capitalize on the growing trend of decentralized finance (DeFi) and non-fungible tokens (NFTs) contribute to its rapid growth.

Other

Expected Growth: 12.15%

Riot Blockchain's 12.15% growth driven by increasing demand for cryptocurrency mining, strategic expansion into new markets, and improved operational efficiency. Additionally, the company's focus on reducing energy costs and increasing hash rate capacity has contributed to its growth. Furthermore, the rising value of Bitcoin and other cryptocurrencies has also positively impacted the company's revenue.

7. Detailed Products

Cryptocurrency Mining

Riot Blockchain, Inc. is a cryptocurrency mining company that focuses on Bitcoin mining. The company operates a large-scale mining facility in Oklahoma City, Oklahoma, and has a fleet of specialized computers that solve complex mathematical equations to validate transactions on the Bitcoin blockchain.

Data Center Hosting

Riot Blockchain, Inc. offers data center hosting services, providing a secure and reliable infrastructure for cryptocurrency mining and other high-performance computing applications.

Cryptocurrency Trading

Riot Blockchain, Inc. provides cryptocurrency trading services, allowing users to buy, sell, and trade various cryptocurrencies, including Bitcoin, Ethereum, and others.

Blockchain Consulting

Riot Blockchain, Inc. offers blockchain consulting services, helping businesses and organizations understand and implement blockchain technology to improve their operations and create new revenue streams.

8. Riot Blockchain, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Riot Blockchain, Inc. operates in the cryptocurrency mining industry, which is highly competitive. However, the company's focus on Bitcoin mining and its established operations provide some protection against substitutes.

Bargaining Power Of Customers

Riot Blockchain, Inc.'s customers are primarily individual and institutional investors, who have limited bargaining power due to the company's established position in the market.

Bargaining Power Of Suppliers

Riot Blockchain, Inc. relies on suppliers for equipment and services, but the company's scale and established relationships mitigate the bargaining power of suppliers.

Threat Of New Entrants

The cryptocurrency mining industry is highly competitive, and new entrants can easily enter the market, posing a significant threat to Riot Blockchain, Inc.'s market share.

Intensity Of Rivalry

The cryptocurrency mining industry is highly competitive, with many established players, leading to a high intensity of rivalry among companies, including Riot Blockchain, Inc.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 1.12%
Debt Cost 24.84%
Equity Weight 98.88%
Equity Cost 24.84%
WACC 24.84%
Leverage 1.13%

11. Quality Control: Riot Blockchain, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Momentum: 8.0

Volatility: 5.7

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Riot Blockchain

A-Score: 4.5/10

Value: 5.3

Growth: 6.3

Quality: 5.5

Yield: 0.0

Momentum: 9.0

Volatility: 1.0

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Momentum: 1.5

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

15.59$

Current Price

15.59$

Potential

-0.00%

Expected Cash-Flows