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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

Breaking News: Riot Blockchain Inc has not released recent earnings. However, the stock jumped as Bitcoin climbed back above $71000. This surge lifted sentiment in related equities. No recent recommendations were found from analysts. Other crypto stocks also saw gains. Bitcoin's recent price increase has positively impacted crypto related companies. Several cryptocurrency linked companies rose on this news.

1.c. Company Highlights

2. Riot Platforms' Strategic Repositioning and Financial Performance

Riot Platforms reported total revenue of $647 million for fiscal year 2025, representing a 72% increase year-over-year. The company's Bitcoin Mining business achieved its highest annual revenue and gross profit on record, with revenue of $576.3 million and gross profit of $294 million. However, the company's Non-GAAP adjusted EBITDA for the year was $13 million, indicating a challenging operational environment. The actual EPS came out at '-2.03', missing estimates at '-0.22'.

Publication Date: Mar -04

📋 Highlights
  • Revenue Growth:: Total revenue surged to $647 million (72% YoY), driven by record Bitcoin Mining revenue of $576.3 million and $294 million gross profit.
  • Rockdale Site Acquisition:: Purchased 200-acre Rockdale site for $96 million using Bitcoin sales, eliminating $130 million in future rental expenses.
  • Power Cost Efficiency:: Achieved $0.037/kWh net power cost, one of the lowest in the industry, supporting competitive data center operations.
  • Engineering Backlog Growth:: Engineering backlog hit $224.6 million (302% YoY), reflecting strong demand for Riot’s infrastructure capabilities.

Operational Highlights and Business Strategy

Riot Platforms has been repositioning itself to be at the forefront of the data center industry. The company completed the fee simple acquisition of its Rockdale site, securing 200 acres of critical land, and expanded its land portfolio to support full utilization of its approved power capacity. The company's leasing strategy focuses on high creditworthy tenants to match its high-quality assets, driving capital efficiency and asset valuation. As Jason Les noted, "By partnering with highly creditworthy counterparties, we secure the most favorable, lowest-cost financing available in the market."

Data Center Development and Growth Prospects

Riot has 1.7 gigawatts of fully approved firm power across its Corsicana and Rockdale sites, providing a major competitive advantage in today's power-constrained environment. The company is targeting additional announcements in 2026, with a goal of executing on its data center strategy and converting additional megawatts into contracted data center leases. Analysts estimate next year's revenue growth at 12.5%, indicating a positive outlook for the company's growth prospects.

Valuation and Comparative Analysis

Using various valuation metrics, we can assess what's priced into Riot Platforms' stock. The company's P/S Ratio stands at 8.78, while its EV/EBITDA ratio is 16.53. The ROE and ROIC are both negative, at -21.05% and -16.69%, respectively. These metrics indicate that the market is pricing in significant growth expectations, but the company's current operational performance is a concern. The signing of the AMD lease is seen as a validation of Riot's team, sites, and development model, potentially paving the way for a rerating of the underlying value of the company's power portfolio.

3. NewsRoom

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Crypto Stocks Jump as Bitcoin Roars Back Above $71,000

Mar -04

Source: gurufocus.com

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These Analysts Cut Their Forecasts On Riot Platforms Following Q4 Results

Mar -03

Source: benzinga.com

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Riot Platforms: A Hold At Best

Mar -03

Source: seekingalpha.com

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Riot Platforms, Inc. (RIOT) Reports Q4 Loss, Misses Revenue Estimates

Mar -03

Source: zacks.com

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Riot Platforms, Inc. (RIOT) Q4 2025 Earnings Call Transcript

Mar -03

Source: seekingalpha.com

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Riot Platforms Stock Dips After Q4 Earnings: What To Know

Mar -02

Source: benzinga.com

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Bitcoin Dropping to $60,000 Could Crush Every Stock Inside This $1.2B ETF

Mar -02

Source: 247wallst.com

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Bitcoin Fell 36% Fast and The BITQ ETF Felt Every Bit of It

Mar -02

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

Stock-Card
JFrog

A-Score: 5.0/10

Value: 4.2

Growth: 7.0

Quality: 5.2

Yield: 0.0

Momentum: 10.0

Volatility: 3.3

1-Year Total Return ->

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Paycom Software

A-Score: 4.7/10

Value: 3.1

Growth: 8.9

Quality: 8.4

Yield: 1.0

Momentum: 1.5

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Bentley Systems

A-Score: 4.6/10

Value: 1.1

Growth: 6.4

Quality: 7.5

Yield: 1.0

Momentum: 3.5

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Riot Blockchain

A-Score: 4.4/10

Value: 5.6

Growth: 6.1

Quality: 6.5

Yield: 0.0

Momentum: 7.0

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
Procore

A-Score: 4.3/10

Value: 4.4

Growth: 7.9

Quality: 3.9

Yield: 0.0

Momentum: 4.5

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
GitLab

A-Score: 3.3/10

Value: 5.0

Growth: 6.7

Quality: 3.9

Yield: 0.0

Momentum: 1.5

Volatility: 3.0

1-Year Total Return ->

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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

16.53$

Current Price

16.53$

Potential

-0.00%

Expected Cash-Flows