Bitcoin Surges As ETF Inflows Jump. Trump-Linked Miner Reports Results. | Investor's Business DailyTRENDING: [Rare Earth Stocks To Watch]----Cryptocurrency stocks are generally surging this week. powered by bitcoin's ETF-fueled rally to near $70,000 on Wednesday. Stablecoin issuer Circle and bitcoin miner Hut 8 diverged on their Wednesday results, which prompted a 32% spike for CRCL. Trump family-linked miner American Bitcoin rose on its Thursday-morning results. After the stock market close, MARA Holdings, ...

Riot Platforms ( RIOT ) has been one of the Bitcoin ( BTC-USD) miners I have followed closely but kept at arm's length for much of the past market cycle. I have only covered RiotI started out as a crypto investor a decade ago and remain deeply active in the crypto space. I cover Bitcoin miners, digital asset treasuries, and crypto ETFs majorly, but I also seek alpha in tech equities, especially in emerging sectors like quantum computing and orbital intelligence. I have initiated coverage as a first analyst ...

Core Insights - Riot Platforms, Inc. is expected to report a quarterly loss of $0.22 per share with projected revenue of $158 million, making this earnings release significant for investors [1][6] - Despite the anticipated revenue increase, there is a consensus of a year-over-year decline in earnings, which will impact the stock's short-term price movement [2][6] Financial Ratios - The company's price-to-earnings (P/E) ratio is approximately 34.33, indicating high investor expectations for future growth [3][6] - The price-to-sales ratio stands at about 9.46, reflecting the market's valuation of its revenue [3][6] - The enterprise value to sales ratio is around 10.31, while the enterprise value to operating cash flow ratio is negative at approximately -11.62, indicating potential challenges in cash flow generation [4][6] Debt and Liquidity - Riot's debt-to-equity ratio is approximately 0.25, suggesting a relatively low level of debt compared to equity, indicating less reliance on debt financing [5][6] - The current ratio is about 1.47, showing the company's ability to cover its short-term liabilities with its short-term assets, providing a mixed picture of financial health [5][6]

Core Insights - Riot Platforms, Inc. is a leader in the Bitcoin-driven industry focused on developing large-scale data centers and bitcoin mining applications, with an earnings conference call scheduled for March 2, 2026 [1][4] Company Overview - Riot's vision is to be the most trusted platform for powering and building digital infrastructure, aiming to positively impact various sectors, networks, and communities [3] - The company operates Bitcoin mining facilities in central Texas and Kentucky, with engineering and fabrication capabilities located in Denver and Houston [4] - Riot is expanding into data center development, reinforcing its role as a foundational builder in the digital economy [4]

Core Viewpoint - Activist investor Starboard Value is urging Riot Platforms to accelerate its AI data center initiatives, highlighting the company's potential to benefit from the increasing demand for artificial intelligence infrastructure [1]. Group 1: Company Positioning - Riot Platforms is positioned to leverage its substantial power capacity for AI computing as the profitability of bitcoin mining remains unstable [1]. - Starboard Value owns approximately 12.7 million shares of Riot and emphasizes that Riot's Texas sites, Corsicana and Rockdale, can provide about 1.7 gigawatts of power suitable for AI data center operations [1]. Group 2: Market Dynamics - The letter from Starboard indicates a trend among cryptocurrency miners to pivot towards AI and high-performance computing (HPC) as a response to the volatile nature of bitcoin mining profits [1]. - Starboard notes that AI and HPC companies are increasingly looking to cryptocurrency miners for immediate power capacity for their data centers [1]. Group 3: Strategic Recommendations - Starboard advises Riot to focus on securing high-quality, investment-grade tenants, such as hyperscalers, rather than merely pursuing the highest lease rates [1]. - The recent agreement between Riot and Advanced Micro Devices is viewed as a positive development, although it is characterized as a minor proof-of-concept deal [1].

Key Takeaways Riot’s Bitcoin mining profits are declining sharply due to lower prices. Activist investor Starboard urges Riot to accelerate its shift to AI data centers. Many Bitcoin miners are pivoting to AI hosting for steadier, higher margins. Riot Platforms, one of the largest U.S. Bitcoin mining companies, is under growing pressure to pivot to Artificial Intelligence (AI). This trend has gained momentum amid declining mining profitability. The company owns large power sites in Texas that c ...

Core Viewpoint - The market anticipates Riot Platforms, Inc. (RIOT) will report a year-over-year decline in earnings despite higher revenues for the quarter ending December 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Riot Platforms is expected to report a quarterly loss of $0.22 per share, reflecting a year-over-year change of -150% [3]. - Revenues are projected to be $157.36 million, which is an increase of 10.4% compared to the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from covering analysts [4]. - The Most Accurate Estimate for Riot Platforms is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -12.36%, suggesting a bearish sentiment among analysts [11]. Earnings Surprise History - In the last reported quarter, Riot Platforms was expected to post a loss of $0.19 per share but instead reported earnings of $0.26, resulting in a surprise of +236.84% [12]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [13]. Industry Comparison - In contrast, Moody's (MCO) is expected to report earnings of $3.46 per share for the same quarter, indicating a year-over-year change of +32.1%, with revenues expected to reach $1.88 billion, up 12.2% from the previous year [17][18]. - Moody's has a higher Most Accurate Estimate leading to an Earnings ESP of +0.83% and a Zacks Rank of 2 (Buy), suggesting a strong likelihood of beating the consensus EPS estimate [18][19].

Core Viewpoint - Bitfarms is transitioning from Bitcoin mining to AI infrastructure, rebranding as Keel Infrastructure to focus on high-performance computing (HPC) and AI data centers in North America [1][2]. Company Transition - The company announced its intention to abandon Bitcoin mining in November, aiming to improve net operating incomes by shifting to AI infrastructure [1]. - CEO Ben Gagnon emphasized that the new name reflects the company's infrastructure-first approach and its commitment to building future computing infrastructure [2]. - A shareholder vote is scheduled for March 20 to approve the transition, which is part of a strategic review by the board over the past year [3]. Market Reaction - Following the announcement, shares of Bitfarms (BITF) increased by 27%, trading around $2.17, amid a broader recovery in crypto equities [2]. - The company plans to complete its U.S. redomiciliation by April 1 and will trade on Nasdaq under the ticker KEEL [2]. Industry Context - Other publicly traded Bitcoin miners, such as Riot Platforms and MARA Holdings, are also shifting towards AI, indicating a broader trend in the industry [4]. - The move to AI may provide a more stable revenue stream for miners facing uncertainty due to fluctuating Bitcoin prices, which recently dropped significantly [4][5].

Group 1 - Hut 8 Corp. experienced a significant drop in share prices, falling by 17.89% to $44.48, influenced by negative investor sentiment due to the Treasury department's inability to support the cryptocurrency market [1][2] - The decline in Hut 8's stock was part of a broader trend affecting other cryptocurrency-related companies, including MARA Holdings and Riot Platforms, following Treasury Secretary Scott Bessent's statement regarding the lack of authority to intervene in the cryptocurrency market [2] - Bitcoin's price fell sharply to around $62,000, representing a 50% decrease from its all-time high of $126,000, which further impacted investor confidence in cryptocurrency assets [2] Group 2 - Michael Burry, a well-known investor, expressed concerns about Bitcoin's weakness, warning that a drop to the $50,000 level could lead to a "death spiral" for Bitcoin investors [3] - Hut 8 Corp. is recognized as a leading player in the Bitcoin mining industry and is currently transitioning towards artificial intelligence services [3] - The company holds a majority stake in American Bitcoin Corp., co-founded by Eric Trump, indicating its strategic positioning within the cryptocurrency sector [4]

Core Insights - Prominent digital asset treasuries (DATs) are experiencing significant unrealized losses due to the recent decline in cryptocurrency prices, with firms like BitMine Immersion Technologies (BMNR) and Strategy (MSTR) facing substantial financial setbacks [1][2] Group 1: Financial Performance of Digital Asset Treasuries - BMNR has reported approximately $8.4 billion in losses from its Ethereum investments, while Strategy holds $9.2 billion in paper losses from Bitcoin purchases [1] - Bitcoin has seen a 24% decline over the past week, trading around $63,708, while Ethereum has dropped nearly 34%, reaching around $1,867 [2] - The total losses across various DATs have exceeded $25 billion, including around $1 billion in unrealized losses for Forward Industries and over $100 million for firms holding Hyperliquid (HYPE) and BNB [7] Group 2: Market Sentiment and Predictions - The likelihood of Strategy selling some of its Bitcoin holdings has increased, with predictions indicating a 32% chance of this occurring within the year [6] - Michael Saylor, co-founder of Strategy, has publicly maintained a bullish stance on Bitcoin, emphasizing the importance of buying and holding despite the current market conditions [4] - Criticism has emerged from both traditional financial analysts and crypto-natives regarding the sustainability of digital asset treasuries, with some suggesting that the market may not be viable in the long term [7]