Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 20 Aug, 25 | RIOT | Buy | USD 11.38 | USD 12.0 | USD 12.7 | Same day | Closed |
7.91%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Riot Platforms, Inc., together with its subsidiaries, operates as a bitcoin mining company in North America. The company operates through three segments: Bitcoin Mining, Data Center Hosting, and Engineering. It also provides co-location services for institutional-scale bitcoin mining companies; critical infrastructure and workforce for institutional-scale miners to deploy and operate their miners; operation of data centers; and maintenance/management of computing capacity. In addition, the company engages in the design and manufacturing of power distribution equipment and custom engineered electrical products; and electricity distribution product design, manufacture, and installation services primarily focused on large-scale commercial, and governmental customers, as well as a range of markets, including data center, power generation, utility, water, industrial, and alternative energy. The company was formerly known as Riot Blockchain, Inc. Riot Platforms, Inc. was incorporated in 1998 and is based in Castle Rock, Colorado.
Bitcoin Production: Increased from 844 BTC (Q2 FY24) to 1,426 BTC (Q2 FY25) (+69%)
Revenue Growth: Increased from USD 70.0M (Q2 FY24) to USD 153.0M (Q2 FY25) (+118%)
Net Cost of Power: Rose from 2.1c/kWh (Q2 FY24) to 3.5c/kWh (Q2 FY25) (+67%)
Cost to Mine: Increased from USD 25,329/BTC (Q2 FY24) to USD 48,992/BTC (Q2 FY25) (+93%)
Riot’s financial performance remains heavily dependent on volatile Bitcoin prices and rising mining costs, making it vulnerable to margin compression if market conditions deteriorate
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 11.38 | 10.4 | 12.0 | 12.7 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Strategic Positioning: Riot Platforms continued to position itself as one of the largest and most efficient Bitcoin miners globally while also progressing in its transition toward data center operations. The company emphasized its ability to maximize shareholder value through efficient power utilization, Bitcoin treasury management, engineering integration, and expansion into high-performance computing opportunities. Riot’s long-term roadmap indicates a balance between Bitcoin mining and diversification into adjacent sectors such as data centers.
Operational Performance: During Q2 FY25, Riot achieved strong operational outcomes, maintaining an 87% uptime despite higher power curtailments. The company’s Bitcoin mining gross margin stood at 50%, supported by one of the lowest all-in power costs in the industry at 3.5 cents per kWh. Riot produced 1,426 BTC, averaging 15.7 BTC per day, and ended the quarter with a deployed hash rate of 35.4 EH/s, a 5% increase from the prior quarter.
Financial Highlights: Total revenue for the quarter reached USD 153.0 million, a significant increase compared to the prior year period. Net income stood at USD 219.5 million, largely benefiting from a USD 470.8 million unrealized gain on Bitcoin holdings, though this was partially offset by contract settlement and derivative losses. Adjusted EBITDA reached USD 495.3 million, highlighting the company’s strong operating leverage amid favorable Bitcoin pricing conditions.
Balance Sheet Strength: Riot ended the quarter with 19,273 BTC valued at approximately USD 2.1 billion and a cash balance of USD 330 million. The company further enhanced liquidity by raising USD 99 million through its ATM program and establishing a USD 200 million Bitcoin-backed credit facility with Coinbase. This financial flexibility enables Riot to fund its expansion projects, including ongoing capacity development at Corsicana and Rockdale.
Cost Pressures: Despite strong revenue and profitability metrics, Riot experienced a notable increase in its cost to mine, which rose to USD 48,992 per BTC compared to USD 25,329 in Q2 FY24. This increase was primarily driven by higher global hash rates and property tax reassessments at its Corsicana site. While gross margins remained robust, the rising cost structure could pose challenges if Bitcoin prices decline.
Expansion and Capital Investments: The company increased its 2025 hash rate growth target from 38.4 EH/s to 40.0 EH/s and set a Q1 FY26 target of 45 EH/s. Riot also expanded its land footprint at Corsicana to 858 acres to support future data center growth. Capital expenditures for the year are projected at over USD 380 million, with significant allocations to land acquisitions, substation developments, and miner purchases.
Diversification into Data Centers: Riot accelerated its data center initiatives by securing industry leadership talent and acquiring additional land for large-scale deployments. The company highlighted robust demand for data center infrastructure and plans to leverage its engineering arm to support supply chain management. This diversification aims to reduce long-term reliance on Bitcoin mining while capturing growth in AI and cloud computing demand.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on Riot Platforms, Inc. (NASDAQ: RIOT) at the current market price of USD 11.38, as on August 20,2025 at 7:30 am PDT.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Financial Services Industry: Capital Markets
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| RIOT Riot Blockchain Inc |
0.27 2.08% | 13.23 | 24.62 | 13.16 | 8.22 | 1.22 | 5.05 | -509.17 |
| MS Morgan Stanley |
-2.065 1.18% | 172.74 | 16.50 | 13.76 | 2.80 | 1.65 | ||
| CGXYY China Galaxy Securities Co Ltd ADR |
- -% | 33.00 | 144.44 | 86.21 | 4.25 | 7.96 | ||
| SCHW Charles Schwab Corp |
- -% | 96.61 | 22.86 | 17.39 | 6.14 | 4.28 | ||
| GS Goldman Sachs Group Inc |
4.04 0.46% | 876.37 | 18.44 | 10.60 | 2.83 | 1.16 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is August 20,2025. The reference data in this report has been partly sourced from REFINITIV
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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