Professional
Added to YB: 2024-06-11
Pitch date: 2024-06-05
RIOT [bearish]
Riot Platforms, Inc.
-61.9%
current return
Author Info
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Company Info
Riot Platforms, Inc., together with its subsidiaries, operates as a Bitcoin mining company in the United States.
Market Cap
$5.2B
Pitch Price
$9.45
Price Target
N/A
Dividend
N/A
EV/EBITDA
11.07
P/E
34.51
EV/Sales
8.95
Sector
Software
Category
N/A
[short] Riot Platforms, Inc. (RIOT) - Headed For a Mine Collapse
RIOT: Bitcoin miner at $3B mkt cap. Awful biz model - unpredictable revs, capital intensive, competitive, commodity product. Never produced +ve cash flow. Issued $507M stock ytd (18% dilution) at current prices. Honeymoon over in TX - new oversight limiting incentives amid grid issues. Halving crushed profitability. Intense global competition from cheaper locales. BTC ETFs better way to play BTC vs. RIOT which can't increase BTC/share. SG&A 46% of revs in '23. All-in costs to mine ~$140k/BTC post halving. Subpar ops can't curtail in grid programs meant for well-run miners. Risks: abatement rejection, miner restrictions, competition, dilution.
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