H.C. Wainwright maintains $17 target on Riot Platforms stock

Tuesday, H.C. Wainwright reaffirmed its Buy rating and $17.00 price target for Riot Platforms (NASDAQ:RIOT), following the company’s release of its fourth quarter and full-year 2024 financial results. With the stock currently trading at $9.99, analysts see significant upside potential, with targets ranging from $13 to $23. Riot Platforms, known for its cryptocurrency mining operations, also updated investors on its high-performance computing (HPC) and artificial intelligence (AI) strategy. According to InvestingPro analysis, the company maintains strong liquidity with a current ratio of 5.68, though it trades at a demanding P/E ratio of 199.8.

On Monday, Riot Platforms disclosed its end-of-year 2025 hash rate goal of 38 exahashes per second (EH/s), marking a 13% increase from the 33.5 EH/s deployed at the end of January. In addition, the company discussed its HPC/AI plans, particularly after announcing a review process to assess the potential development of its Corsicana, Texas facility. This site could possibly host AI-focused data centers, utilizing the remaining 600 megawatts (MW) of power capacity. InvestingPro data shows the company has achieved revenue growth of 19.43% over the last twelve months, with a Financial Health Score rated as FAIR, suggesting stable operational performance despite the volatile nature of its business (Beta: 4.23).

The company’s management is actively seeking opportunities in HPC to leverage Riot’s assets, spurred by interest from hyperscalers beginning in late 2024. While details regarding partnerships or timelines were not provided, the conclusion of a feasibility study expected next month is anticipated to be a significant milestone for Riot’s HPC/AI initiatives.

Riot’s Corsicana facility offers appealing features such as proximity to Dallas, access to essential utilities, and the prospect of expanding its power capacity to 600 MW by early 2026. This makes it an attractive location for hyperscalers and AI firms. Riot has also updated its board and is collaborating with financial advisors and infrastructure partners to optimize its positioning in the market.

In terms of Bitcoin (BTC) mining, Riot’s primary business, the company significantly increased its operational capacity in 2024. It achieved a 154% year-over-year growth in total deployed hash rate, reaching 31.5 EH/s by the year’s end. Riot also added more than 10,000 BTC to its balance sheet, 5,784 of which were purchased on the open market using proceeds from a $579 million convertible note offering in December. This acquisition contributed to a 39% BTC yield for the year.

Looking ahead to 2025, Riot Platforms is concentrating on three main objectives: aggressively pursuing HPC/AI opportunities, achieving a hash rate of 38 EH/s by year-end, and increasing the amount of BTC held per share. With a strong balance sheet, featuring 18,221 BTC as of the end of January, and the potential growth from HPC/AI sectors, H.C. Wainwright’s analysts remain bullish on Riot Platforms shares. For deeper insights into Riot’s financial health and growth prospects, including 14+ additional ProTips and comprehensive valuation metrics, investors can access the full analysis through InvestingPro’s detailed research report, part of its coverage of 1,400+ US equities.

In other recent news, Riot Platforms reported a significant financial turnaround in Q4 2024, with total revenue climbing 34% to $376.7 million and net income reaching $109.4 million, a stark contrast to the previous year’s net loss. The company’s Bitcoin mining revenue surged by 70% to $321 million, contributing to the overall robust earnings. Riot Platforms also announced plans to invest $198 million in capital expenditures in 2025, focusing on AI high-performance computing opportunities. The company has ceased selling mined Bitcoin and instead purchased over 10,000 Bitcoin, reinforcing its strategic position in the cryptocurrency market. Additionally, Riot Platforms completed the acquisition of E4A Solutions, enhancing its engineering capabilities and expanding service offerings. Despite these positive developments, Riot’s stock faced a decline, reflecting broader market volatility concerns. Analyst firms like Evercore and Northland are advising Riot on potential partnerships with hyperscalers to maximize asset value. These developments highlight Riot’s strategic efforts to capitalize on both Bitcoin mining and AI computing sectors.

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