Riot Platforms Powers Up: Analyst Gives 4 Reasons Why He Is Bullish

Core Viewpoint - Needham analyst John Todaro maintains a Buy rating on Riot Platforms, Inc. but has lowered the price forecast from $13.50 to $12 following the company's first quarter results, which showed significant revenue growth primarily from Bitcoin mining [1][5]. Financial Performance - Riot Platforms reported total revenue of $79.3 million in the first quarter, an increase driven by a $71.5 million rise in Bitcoin mining revenue [1]. - The company produced 1,530 Bitcoin in the first quarter, up from 1,364 Bitcoin in the same quarter of the previous year [2]. - The average cost to mine Bitcoin was $43,808 during the quarter [2]. Investment Thesis - The analyst is optimistic about Riot Platforms for several reasons: - The company has high-performance computing (HPC) opportunities in 2026 with a potential capacity of 600MW at its Corsicana site [3]. - Riot is a low-cost Bitcoin producer, with power costs below four cents per kilowatt-hour [4]. - The company maintains a clean balance sheet with no corporate debt and holds one of the largest cash and Bitcoin positions among publicly traded mining firms [4]. - The stock is currently trading at a discount compared to peers, which is expected to change as HPC becomes a more significant growth driver [5]. Future Outlook - The price forecast was adjusted based on a multiple of 13 times the firm's estimated EV/EBITDA for 2026 [5]. - The resolution of litigation with Rhodium is expected to ease SG&A expenses and free up an additional 125MW of capacity [5]. - Although Riot has not yet secured a letter of intent with HPC tenants, there is optimism regarding the potential at the Corsicana site due to infrastructure upgrades and management's commitment to developing a full-stack, built-to-suit data center [6].