On Tuesday, Piper Sandler initiated coverage on shares of Riot Platforms (NASDAQ: NASDAQ:RIOT), a company specializing in cryptocurrency mining, assigning an Overweight rating and setting a price target of $23.00.
The firm's perspective is optimistic regarding Riot's potential to expand its mining operations significantly in the years ahead. According to InvestingPro data, the stock has shown remarkable momentum with a 26.4% return over the past week.
Riot Platforms, with a market capitalization of $4.66 billion and trading at a P/E ratio of 278.6, is currently behind its peer, Marathon Digital (NASDAQ:MARA) Holdings, in terms of mining capacity and Bitcoin treasury holdings.
As of the end of the fourth quarter of 2024, Riot has a mining capacity of approximately 28 exahashes per second (EH/s) and holds around 16,000 Bitcoin, valued at roughly $1.7 billion. For detailed financial metrics and 16 additional ProTips, investors can access comprehensive analysis through InvestingPro.
Despite trailing Marathon Digital Holdings, which boasts about 35 EH/s in mining capacity, Piper Sandler sees a bright future for Riot Platforms. The firm is particularly encouraged by Riot's plans to scale up its operations. This includes the development of the Corsicana facility in Navarro County, Texas, which is expected to be a cornerstone in Riot's strategy to triple its mining capacity by the end of 2027 and beyond, aiming for approximately 100 EH/s.
The upgrade of Riot's mining capacity is anticipated to be a key driver for the company's growth, as it seeks to cement its position in the competitive field of cryptocurrency mining. Piper Sandler's coverage initiation and positive outlook reflect confidence in Riot's strategic initiatives and future prospects in the industry.
In other recent news, Riot Platforms has completed its offering of 0.75% convertible senior notes due 2030, raising a total principal amount of $594.4 million. The company has used the proceeds, approximately $579.2 million, to acquire additional Bitcoin, increasing its holdings by approximately 5,117 Bitcoins, costing around $510 million. This has brought Riot Platforms' total Bitcoin holdings to 16,728.
The company also plans a private offering of $500 million in convertible senior notes due 2030, with proceeds intended for further Bitcoin acquisition and general corporate purposes. InvestingPro analysts project a strong revenue growth of 32% for the current year for Riot Platforms.
Firms such as Compass Point, H.C. Wainwright, and ATB Capital Markets have given Riot Platforms a Buy rating. Despite a decrease in Bitcoin production in November 2024, the company reported an increase in operational hash rate capacity. These are the recent developments for Riot Platforms.
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