- Recently, Riot Platforms announced it now holds a 9.85% stake in Bitfarms Ltd. after selling 2,462,458 shares and clarified it may adjust this position based on future discussions and strategic factors.
- This signals Riot’s increasing involvement and potential influence within the Bitcoin mining sector, alongside continuing attention on the company ahead of its upcoming earnings report announcement.
- We'll explore how Riot’s substantial investment in Bitfarms could influence its investment narrative, given analysts' focus on sector expansion and strategic shifts.
Riot Platforms Investment Narrative Recap
To be a shareholder in Riot Platforms, you need to believe in the long-term value of Bitcoin mining and the company’s push to scale up hash rate and digital infrastructure. Riot’s acquisition of a 9.85% stake in Bitfarms Ltd. may reflect growing sector influence, but does not materially alter the fact that the company's short-term catalyst remains upcoming earnings, while the largest risk is continued exposure to Bitcoin price volatility.
Among recent announcements, Riot’s scheduled earnings report for the second quarter on July 31 stands out. Investors looking at the Bitfarms stake may want to pay close attention to financial updates, as earnings results can shape expectations around both operational progress and the management of risks related to Bitcoin yield strategy.
By contrast, Bitcoin’s price volatility, especially as Riot accumulates mined reserves, is a risk investors should keep front of mind as...
Read the full narrative on Riot Platforms (it's free!)
Riot Platforms' narrative projects $951.3 million in revenue and $125.9 million in earnings by 2028. This requires a 27.5% annual revenue growth rate and a $524.6 million increase in earnings from the current level of -$398.7 million.
Uncover how Riot Platforms' forecasts yield a $16.27 fair value, a 17% upside to its current price.
Exploring Other Perspectives
Four members of the Simply Wall St Community estimate Riot's fair value at between US$8.90 and US$16.27 per share, reflecting varied outlooks. Keep in mind that Bitcoin price swings remain a significant factor influencing future returns, so consider how different perspectives could affect your view.
Build Your Own Riot Platforms Narrative
Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.
- A great starting point for your Riot Platforms research is our analysis highlighting 1 key reward and 3 important warning signs that could impact your investment decision.
- Our free Riot Platforms research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Riot Platforms' overall financial health at a glance.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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