Activist investor Starboard Value is asking Riot Platforms to speed up its transition from Bitcoin miner to a data center company, according to a letter reviewed by Bloomberg News https://t.co/e1g6FGHxk2 ...

Core Insights - Riot Platforms, Inc. (NASDAQ:RIOT) is recognized as one of the best Bitcoin and blockchain stocks to invest in [1][2] Group 1: Analyst Ratings and Price Targets - Cantor Fitzgerald maintained an Overweight rating for Riot Platforms and increased its price target from $25 to $31, citing the company's land acquisition at Rockdale and a data center lease with AMD [3] - Keefe Bruyette reiterated its Outperform rating and raised its price target from $16 to $23, highlighting the long-term income visibility from the 10-year AMD lease, which secures approximately 21% of Rockdale's total capacity [4] Group 2: Financial Transactions and Performance - Riot Platforms purchased 200 acres at its Rockdale site for $96 million, funded by the sale of about 1,080 bitcoin [5] - The company secured a data center lease with AMD for an initial deployment of 25 MW starting in January 2026 [5] - As of February 11, 2026, the stock has increased by 4.52% year-to-date [5] Group 3: Business Overview - Riot Platforms is primarily engaged in bitcoin mining and provides specialized machines for cryptocurrency mining [5] - The company has made investments in Tess, Coinsquare, and Verady [5]

Core Viewpoint - The market anticipates Riot Platforms, Inc. (RIOT) will report a year-over-year decline in earnings despite higher revenues for the quarter ending December 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Riot Platforms is expected to report a quarterly loss of $0.22 per share, reflecting a year-over-year change of -150% [3]. - Revenues are projected to be $157.36 million, which is an increase of 10.4% compared to the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from covering analysts [4]. - The Most Accurate Estimate for Riot Platforms is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -12.36%, suggesting a bearish sentiment among analysts [11]. Earnings Surprise History - In the last reported quarter, Riot Platforms was expected to post a loss of $0.19 per share but instead reported earnings of $0.26, resulting in a surprise of +236.84% [12]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [13]. Industry Comparison - In contrast, Moody's (MCO) is expected to report earnings of $3.46 per share for the same quarter, indicating a year-over-year change of +32.1%, with revenues expected to reach $1.88 billion, up 12.2% from the previous year [17][18]. - Moody's has a higher Most Accurate Estimate leading to an Earnings ESP of +0.83% and a Zacks Rank of 2 (Buy), suggesting a strong likelihood of beating the consensus EPS estimate [18][19].

Core Viewpoint - Riot Platforms is experiencing significant attention from investors due to its substantial Bitcoin holdings and the volatility in Bitcoin prices, which directly impacts its stock performance [1][2]. Group 1: Financial Performance and Earnings - Riot Platforms holds over 18,000 Bitcoin, valued at more than $1.2 billion, which is a critical asset influencing its market position [1]. - The company is set to release its Q4 earnings and full-year financial results on February 24, which is anticipated to be a significant event for investors [4]. - There is ongoing speculation regarding the company's transition from a Bitcoin miner to a data center and AI infrastructure provider, with mixed market sentiment about this shift [5]. Group 2: Strategic Developments - Riot has entered into a land purchase and lease agreement for approximately 200 acres in Texas with Advanced Micro Devices (AMD), which could enhance its long-term earnings potential [6]. - This partnership with AMD is expected to support Riot's high-performance computing needs and may positively influence investor perceptions of the company's future earnings and EBITDA guidance [6]. Group 3: Market Sentiment - Investors are currently adopting a relatively bullish outlook on Riot Platforms as it approaches its upcoming financial report, despite the broader market weakness in AI-related stocks [7].

Core Insights - The cryptocurrency market is experiencing volatility, with Bitcoin trading down from a high of $124,714.85 to a low of $62,839.77 over the past year, while recent price movements show slight increases for Bitcoin, Ethereum, and Solana [2][3] - Long-term expectations for digital assets remain positive due to a favorable regulatory environment and increasing institutional acceptance, particularly with the passage of the GENIUS Act [4] - Companies like Strategy and Riot Platforms are transitioning their business models to adapt to market changes, focusing on AI and high-performance computing (HPC) infrastructure [8][11] Cryptocurrency Market Overview - Cryptocurrencies operate on decentralized blockchain networks, enhancing security and transparency, which supports broader adoption and investor confidence [1] - Bitcoin has faced bearish sentiments due to macroeconomic conditions and tighter liquidity, impacting its trading performance [2] Company Performance - Coinbase reported earnings of 66 cents per share, missing estimates by 28.3%, and significantly down from $3.39 per share a year ago [3] - Strategy raised $25.3 billion in 2025, making it the largest equity issuer among U.S. public companies, and holds 713,502 bitcoins, representing about 3.4% of total bitcoin supply [6][7] - Riot Platforms is shifting from Bitcoin mining to data center development, with significant power capacity and plans for AI and HPC expansion [8][9] Strategic Developments - TeraWulf is evolving towards AI and HPC infrastructure, generating recurring revenues supported by long-term contracts, while also expanding its Bitcoin mining capacity [11] - The company aims to add 250-500 MW of HPC capacity annually, driven by strong demand in AI [11] Financial Considerations - Strategy's digital asset balance increased from $23.9 billion at the end of 2024 to $58.9 billion at the end of 2025, indicating strong liquidity [7] - Riot Platforms faces near-term capital expenditure pressures of approximately $214 million for its Corsicana buildout, alongside ongoing market volatility [10] - TeraWulf's shift towards HPC has raised operating costs and capital intensity, with total debt reaching roughly $1.5 billion [12]

Core Viewpoint - Riot Platforms Inc. experienced a significant decline in stock price, falling 14.71% to $12.06, primarily due to a drop in Bitcoin prices and lack of government support for the cryptocurrency market [1][2]. Group 1: Market Performance - Riot Platforms Inc. (NASDAQ:RIOT) was one of the worst performers, alongside other companies in the cryptocurrency sector, following the Treasury Secretary's statement that the government lacks authority to support the market [2]. - Bitcoin prices fell to as low as $62,000, marking a 50.8% drop from its all-time high of $126,000 [3]. Group 2: Company Production and Holdings - In December, Riot Platforms produced 460 Bitcoins, an 8% increase from 428 in November, but an 11% decrease compared to December 2024 [4]. - As of the end of last year, Riot Platforms owned a total of 18,005 Bitcoins [5].

Market Overview - Bitcoin (BTC) dropped below $70,000, losing approximately 8% in 24 hours, marking its steepest decline since early November 2024, trading at $69,398.37 [1] - The sell-off caused significant volatility in the crypto sector, negatively impacting major blockchain and fintech stocks as the U.S. market opened [1] Company Performance - Robinhood Markets (NASDAQ: HOOD) opened down 2.68% at $78.46, with investors awaiting its Q4 and full-year 2025 earnings report [2] - Coinbase (NASDAQ: COIN) fell 5% to $160.08 amid a new legal challenge from the Nevada Gaming Control Board regarding its prediction market platform [4] - Circle Internet Group (NASDAQ: CRCL), issuer of the USDC stablecoin, decreased by 4.66% to $52.54 [4] - Block (NYSE: XYZ), led by Jack Dorsey, was down 2.61% trading at $55.90 [5] - TeraWulf (NASDAQ: WULF) saw a decline of 5.63% to $13.10 after a previous day’s 11% increase [5] - Riot Platforms (NASDAQ: RIOT), a major Bitcoin mining company, dropped 5.94% to $13.30 [6] Analyst Insights - Truist Securities maintained a "Buy" rating for Robinhood with a price target of $155, while Piper Sandler highlighted near-term challenges such as declining crypto trading volumes and fading retail momentum [3]

Core Insights - J.P. Morgan updated financial models for North American Bitcoin miners, adjusting price targets based on network difficulty and cryptocurrency price fluctuations [1] Group 1: Bitcoin Mining Revenue Projections - Analysts project a modest decline in bitcoin mining revenue for Q4 2025, with estimates for mined bitcoin increasing by a low single-digit percentage due to slower network hashrate growth, while lower realized bitcoin prices offset production gains [2] Group 2: Company Ratings and Price Targets - Cipher Mining (NASDAQ: CIFR) received an overweight rating with an $18 price target, reflecting its power pipeline and pivot toward AI/HPC, alongside a $2 billion debt offering and a 200-megawatt site acquisition in Ohio expected to come online in late 2027 [3] - CleanSpark (NASDAQ: CLSK) holds an overweight rating with a $14 price target, emphasizing its acquisition strategy, including two sites in Texas and ongoing negotiations for potential AI/HPC tenants [4] - Riot Platforms (NASDAQ: RIOT) maintains an overweight rating with a $20 price target, focusing on the capacity potential at its 1 GW Corsicana facility, assuming 600 megawatts of colocation deals by late 2026 [5] - Marathon Digital Holdings (NASDAQ: MARA) is rated overweight with a $13 price target, reflecting its revised year-end 2025 hashrate goal of 75 EH/s [5] - Iris Energy (NASDAQ: IREN) holds an underweight rating with a $39 price target, as the current valuation of approximately $54 is viewed as stretched, factoring in undeveloped site deals that have not materialized [6] Group 3: Regulatory Considerations - J.P. Morgan highlighted an ERCOT proposal that could impact bitcoin miners in Texas, with an interconnection backlog exceeding 250 gigawatts and proposed rules including a "use it or lose it" clause subject to annual reviews, to be presented to state regulators on February 20 [7] - Investors are advised to monitor management commentary from CleanSpark and IREN regarding the ERCOT rule during their earnings report on February 5 [7]

Group 1 - Riot Platforms Inc. has been identified as a high short interest stock with significant upside potential, with Keefe Bruyette analyst Stephen Glagola raising the price target to $23 from $16 following a lease agreement with AMD [1] - The partnership with AMD is projected to generate approximately $311 million in contract revenue, providing Riot Platforms with a high-quality tenant and visibility for its HPC and AI strategy [2] - Needham also raised its price target for Riot Platforms to $30 from $28, citing the lease with AMD, although the lease economics are lower than industry peers, it offers an attractive yield on cost due to efficient capital expenditure of $3.6 million per MW [3] Group 2 - Riot Platforms operates as a Bitcoin mining company in the US, and while it shows investment potential, certain AI stocks are noted to offer greater upside potential with less downside risk [4]

Core Insights - Broad Peak Investment Advisers has acquired a new position in Riot Platforms, purchasing 1.41 million shares valued at $17.86 million, reflecting a significant investment in the company [1][2]. Company Overview - Riot Platforms is a leading U.S.-based Bitcoin mining and infrastructure company, focusing on digital asset production and specialized engineering services [6]. - The company operates large-scale Bitcoin mining facilities and provides engineered power distribution solutions for institutional clients [9]. - As of January 28, Riot's share price was $17.55, with a market capitalization of $6.53 billion, and revenue for the trailing twelve months (TTM) was $637.16 million, with a net income of $164 million [4]. Financial Performance - In the third quarter, Riot reported record revenue of $180.2 million, driven by higher Bitcoin prices and increased mining output, with net income reaching $104.5 million [11]. - The company ended the quarter with over $330 million in unrestricted cash and held approximately 19,300 Bitcoin on its balance sheet, indicating strong financial health and optionality [11]. Strategic Positioning - Riot Platforms represents 3.2% of Broad Peak's 13F reportable assets under management (AUM) after the recent trade, indicating a strategic investment focus [3]. - The company is evolving its business mix by leaning into data center development and power infrastructure, moving towards a more integrated role in high-density computing rather than solely a commodity play [12]. - The investment in Riot is framed as a move towards industrial leverage in digital infrastructure, rather than mere speculation in cryptocurrency [10].