As a seasoned investor with over two decades of experience in the financial markets, I have witnessed countless bull and bear cycles. Having closely followed Bitcoin and its associated mining stocks, I find Riot Platforms to be an intriguing investment opportunity at this juncture.
According to an analysis by H.C. Wainwright’s Mike Colonnese, it’s recommended to invest in the stocks of Bitcoin mining company Riot Platforms, as he sees numerous promising growth prospects stemming from organic sources.
The Riot Platforms stock is down 34% year-to-date amid a broader correction for Bitcoin (BTC) and altcoins that also has crypto stocks down. But in a research note shared with crypto.news, Colonnese argues for the bitcoing mining stock to see further growth as it eyes expansion.
He has reiterated a buy rating for RIOT with a $17 price target.
Riot’s financial results
On July 31, Riot disclosed their second quarter earnings, showing a significant increase in operational expansion throughout the period. Moreover, Riot’s CEO, Jason Les, emphasized that the organization is making strides towards achieving its long-term growth plan.
As reported by H.C. Wainwright’s Colonnese, Riot has upgraded its forecasts for 2024 and 2025, and it has shared its Q2 2024 revenue results. Despite some financial figures being inconsistent, the analyst highlights that Riot surpassed expectations on multiple aspects, particularly with increased engineering income. Moreover, Riot outperformed its hash rate projections for the quarter, achieving a hash rate of 21.4 exahashes per second.
In the last three months up to June 30, Riot experienced a rapid 77% increase in its quarter-over-quarter growth, reaching a hashrate of 22 EH/s. This is the swiftest rate of growth among publicly monitored miners, as reported by H.C. Wainwright and Colonnese.
Expansion efforts
Optimistic outlooks for RIOT are emerging, as the mining company plans to increase its operational capacity even more. Lately, Riot has taken over a Bitcoin mining operation based in Kentucky, known as Block Mining.
The acquisition puts Riot on track towards achieving its 2024 and 2025 growth objectives.
In spite of encountering difficulties with its plan to purchase Bitfarms, Bitcoin miner Riot is steadily moving towards triumph.
According to a recent report by H.C. Wainwright, the company appears to be in a strong financial position for the next 18 months. One key factor contributing to this is its substantial liquidity, currently exceeding $1 billion, compared to projected capital expenditure needs of approximately $694 million until the end of 2025.
“Given its low energy expenses, expansive size, and robust financial health, our analysis suggests that Riot could capitalize on the upcoming growth phase of Bitcoin’s market cycle,” the analyst stated in summary.
By the end of 2024, Riot’s goal is to achieve a hashrate of 36.3 Exahash per second (EH/s), and by the end of 2025, they aim to increase this to 56.6 EH/s.
Meanwhile, the RIOT stock traded around $9.97, down 2.2% at 10:27 am ET on Aug. 1, 2024.
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2024-08-03 01:54