Why a Fund Ditched a $5.1 Million Riot Platforms Stake Amid a Strong Run

Company Overview - Riot Platforms, Inc. is a leading U.S.-based Bitcoin mining company with a diversified business model that includes cryptocurrency mining and specialized engineering services [5] - The company operates large-scale Bitcoin mining facilities and provides engineering services, generating revenue primarily from Bitcoin mining operations and from designing, manufacturing, and installing electrical infrastructure for commercial and governmental clients [8] - As of the latest report, Riot's market capitalization is $5 billion, with a revenue of $637.16 million and a net income of $164 million for the trailing twelve months (TTM) [4] Recent Performance - Riot Platforms reported a record quarter, achieving $180.2 million in revenue and $104.5 million in net income, with nearly $200 million in adjusted EBITDA, driven by higher Bitcoin prices and expanding infrastructure operations [6] - The company's shares were priced at $13.44, reflecting a 16% increase over the past year, which is comparable to the S&P 500's approximately 15% gain during the same period [3] Investment Activity - 13D Management LLC fully liquidated its position in Riot Platforms, selling all 453,272 shares valued at approximately $5.12 million, which previously represented 4.7% of the fund's 13F reportable assets [2][6] - The decision to exit the position may reflect a shift in the stock's risk profile, as mining economics tighten and competition increases, leading to a strategy more focused on capital-intensive data center development [9] Market Context - The stock's performance has been strong, with shares up nearly 90% year-to-date through the last quarter, prompting some investors to lock in gains [9][10] - Riot's current valuation suggests that shares are neither significantly undervalued nor overvalued, aligning closely with market performance [10]