On Tuesday, Roth/MKM maintained a Buy rating on Riot Platforms (NASDAQ:RIOT) and raised the stock price target to $25.50, up from the previous $22.50. The adjustment follows the company's announcement of its fourth-quarter results, which were described as mixed. Riot Platforms has reported an expansion of approximately 2.7 EH/s, bringing its total to 5.9 EH/s due to fleet upgrades and replacements.
The firm noted that this expansion is set to enhance the hash rate outlook for fiscal years 2024 and 2025, as well as improve overall efficiency. Riot's liquidity, which stands at around $908 million, is expected to sufficiently cover capital expenditures through 2025. This financial capability is anticipated to support the company's goal to reach a hash rate of 40.8 EH/s, a significant increase from the current 12.4 EH/s.
The analyst pointed out that based on the fourth-quarter cost of approximately $14,000 to mine per unit, even if costs were to double due to the upcoming halving event, the adjusted mining margin could remain near 50% at the current Bitcoin prices. This projection is part of the rationale behind the increase in the price target for Riot Platforms' shares.
Riot Platforms specializes in cryptocurrency mining, with a focus on Bitcoin. The company's strategic investments and operational developments are closely watched by investors interested in the cryptocurrency sector, particularly as it relates to the infrastructure that underpins Bitcoin mining operations. The update on Riot's performance and the revised price target reflect the company's position in a volatile and fast-evolving industry.
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