Riot Platforms Stock Rises Amid Strategic Acquisition and Market Recovery
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 23 2024
0mins
Should l Buy RIOT?
Source: NASDAQ.COM
Riot Platforms Inc's stock surged by 17.62% as it crossed above the 5-day SMA, reflecting a positive shift in investor sentiment following recent market trends.
The stock's rise is attributed to Riot's strategic acquisition of approximately 200 acres at its Rockdale facility for $96 million, funded entirely through Bitcoin sales, which strengthens its asset base and lays the groundwork for future expansion. Additionally, the company signed a 10-year lease with AMD for a data center, projected to generate approximately $311 million in revenue, enhancing its market competitiveness. Investors are also optimistic ahead of the upcoming earnings report on February 23, which is expected to show a loss of 26 cents per share but with revenue growth potential.
This positive momentum in Riot's stock reflects broader market recovery, particularly in the cryptocurrency sector, as Bitcoin prices stabilize, encouraging investor confidence in mining operations.
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Analyst Views on RIOT
Wall Street analysts forecast RIOT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for RIOT is 27.19 USD with a low forecast of 20.00 USD and a high forecast of 42.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Analyst Rating
16 Buy
0 Hold
0 Sell
Strong Buy
Current: 12.060
Low
20.00
Averages
27.19
High
42.00
Current: 12.060
Low
20.00
Averages
27.19
High
42.00
About RIOT
Riot Platforms, Inc. is a Bitcoin mining and digital infrastructure company. The Company has Bitcoin mining operations in central Texas and Kentucky, and electrical engineering and fabrication operations in Denver, Colorado, and Houston, Texas. It operates a Bitcoin-driven infrastructure platform. Its segments include Bitcoin Mining and Engineering. The Bitcoin Mining segment is engaged in Bitcoin mining activities. The Engineering segment designs and manufacturers power distribution equipment and custom engineered electrical products. This segment also provides electricity distribution product design, manufacturing, and installation services primarily focused on large-scale commercial and governmental customers and serves clients across a range of markets including data center, power generation, utility, water, industrial, and alternative energy. It is also focused on developing a portion of its power capacity for artificial intelligence (AI)/ high-performance computing (HPC) uses.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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