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Riot Platforms Ascend as Bitcoin Soars: Should You Ride the Wave?

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Written by Matt Monaco Reviewed by Jack Kellogg Fact-checked by Tim Sykes
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Riot Platforms Inc.’s stock is surging, fueled by positive news surrounding strategic business developments and a strong market presence. On Tuesday, Riot Platforms Inc.’s stocks have been trading up by 7.14 percent.

The Latest Buzz in Cryptocurrency

  • Cryptocurrency-related stocks are rallying thanks to Bitcoin’s jump above $96,500, boosting firms like Riot Blockchain, Marathon Digital, and MicroStrategy.
  • Riot Platforms reported successfully mining 516 bitcoins in December, a 4% month-over-month growth, culminating their first 400 MW development phase.
  • Keefe Bruyette & Woods initiated Riot Platforms with an ‘Outperform’ rating, presenting a $17 target amidst general positive sentiments.
  • Defiance ETFs announced the launch of RIOX, a 2X long ETF targeting Riot Platforms, offering investors enhanced exposure to the blockchain sector.

Candlestick Chart

Live Update At 14:31:53 EST: On Tuesday, January 14, 2025 Riot Platforms Inc. stock [NASDAQ: RIOT] is trending up by 7.14%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Riot Platforms’ Earnings and Market Position

Riot Platforms has been riding the bullish wave of Bitcoin’s resurgence. In December, they mined 516 bitcoins, a commendable 4% increase from November, supported by the completion of essential systems at the Corsicana Facility. As millionaire penny stock trader and teacher Tim Sykes, says, “There is always another play around the corner; don’t chase just because you feel FOMO.” This growth is more than a mere number; it reflects the strategic moves that Riot Platforms has poured into achieving higher operational efficiency. By focusing on solid strategies rather than impulsive decisions, Riot Platforms exemplifies how traders can benefit from careful, calculated trading actions rather than chasing trends.

The hash rate, a measure of total computational power used in mining, is a testament to Riot’s monumental efforts. Throughout 2024, their hash rate soared by 155%—nearly triple the growth of the network’s hash rate, which was only at 52%. Ending the year with a cumulative mining of 4,828 bitcoin underscores Riot’s aggressive expansion in mining capabilities, despite the gigantic network they’re part of.

Their financial strength stands evident with a strong current ratio of 5.7, signifying that Riot Platforms is well-prepared to manage its short-term liabilities as they expand. However, tricky waters still have to be navigated. The stock’s price-to-sales ratio sits high at 12.5, signaling that investors see a strong future growth potential that hasn’t materialized yet in profits, owing to negative earnings margins.

More Breaking News

Their financial report narrates a story of strategic expansion funded by debt and increased capital stock issuance. Despite a weighty operating loss, Riot’s bold moves in reinvesting for growth strengthen the firm’s footing for potentially dominating the burgeoning crypto market. The elevated enterprise value at $3.4B underscores the market’s confidence, although, their journey towards profitability remains a quest.

Pressing Insights from Recent Trends

Riot has caught the tailwind of the cryptocurrency market. Riot Platforms’ accomplishments fit right into Bitcoin’s stellar performance as it closes in on the $97,000 threshold. This influx energizes not just Riot, but fellow tankers like Coinbase and MicroStrategy, which are heavily invested in this digital wave.

Keefe Bruyette & Woods’ optimistic ‘Outperform’ rating provides additional credibility to RIOT’s pursuit, highlighting that even stalwarts in the financial assessment domain foresee a bright future for this platform’s growth. Amidst average buy ratings, RIOT’s mean price target hovering around $17 echoes promising sentiments amongst analysts and investors alike.

Moreover, the launch of Defiance ETFs’ RIOX aims to magnify exposure to Riot Platforms’ footprint in the crypto mining landscape. By doubling leverage, this ETF could potentially return stronger gains as Riot grows, substantially amplifying investors’ bets on this juggernaut. The market looks at RIOX as an enabler for streamlining access to cryptocurrency markets in a traditional financial landscape.

Contrasting Perspectives in Market Movements

Cryptocurrency-related stocks like Riot Platforms have indeed benefited from Bitcoin’s surge. Yet, questions loom—will this rally extend its momentum, or is it a crest before a plummet?

Historically, the crypto market oscillates between exuberance and skepticism, a landscape shaped by volatile yet lucrative returns. Riot Platforms’ strategic growth and market embracement must convert these opportunities into tangible outcomes. Investors may wonder if it’s worth riding this exhilarating wave or waiting for the simmer to settle.

Trading above the lofty $96,500, Bitcoin has transformed the crypto ecosystem. The synergy between digital currency spikes and enhanced mining operations might just be RIOT’s recipe for growth. Yet, the shadows of fluctuating margins urge caution to those considering deep dives.

Wrapping Up: Cryptos’ Big Push

The story of Riot Platforms unfolds as an epitome of leveraging market volatilities to accentuate growth. They’re treading new ventures with blossoming facility expansions, drawing encouraging ratings from financial veterans. As the crypto world buzzes with optimism, Riot’s strategic strides reaffirm their ambition in being more than mere participants in this buoyant market. In line with veteran strategies, it’s essential to remember the advice of millionaire penny stock trader and teacher Tim Sykes, who says, “Small gains add up over time; focus on building wealth gradually, not chasing jackpots.” This principle resonates deeply within the framework of Riot’s operation.

The recent Bitcoin rally spices Riot’s prospects, yet as stakeholders, one must discern between chasing the high tide and reaping calculated gains. Whether you seize the moment to ride along or wait for the swell to stabilize, Riot Platforms stands at the heart of this thrilling digital revolution.

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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

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Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”