Is Riot Platforms Attractive After A 60% Correction?

Summary:

  • Riot Platforms faces significant challenges, including Bitcoin halving, equity dilution, and EBITDA level losses, leading to a 60% stock decline year-to-date.
  • Despite a strong balance sheet and aggressive expansion plans, Riot’s profitability remains uncertain due to the halving event, increasing network difficulty, and volatile Bitcoin prices.
  • The company’s recent financial performance has been poor, with substantial operating losses and minimal operating cash flow, raising concerns about future profitability.
  • Given the current market conditions and operational challenges, I recommend staying away from RIOT stock, although there may be short-term trading opportunities.

Cryptocurrency mining rigs in a data center

luza studios

Investment Overview

After a strong rally in the first quarter of 2024, Bitcoin USD (BTC-USD) has been sideways to lower. However, the digital asset is still higher by 24% for year-to-date. In comparison, it’s been a challenging year for Bitcoin miners. Riot Platforms, Inc. (


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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