Riot Blockchain Inc (RIOT)RIOT

Riot Blockchain Inc. - Comprehensive Overview

Company Profile:

History and Background: Riot Blockchain, Inc. (RIOT) was incorporated in New York in 2009 as Bioptix, Inc., focusing on biotech and molecular imaging. In 2017, the company shifted its focus to cryptocurrency mining and rebranded as Riot Blockchain. The first phase of their mining facility went online in September 2020.

Core Business Areas:

• Bitcoin mining: RIOT's primary business is mining Bitcoin using a large-scale mining operation in Texas.
• Hosting services: They also offer 20 MW of hosting capacity for third-party miners.

Leadership Team and Corporate Structure:

• Executive Leadership:
  • Jason Les, Chairman and CEO
  • Jeffrey McGonegal, COO and President
• Board of Directors: 7-member board with expertise in finance, technology, and business development.

Top Products and Market Share:

Products:

• Bitcoin mining: RIOT's main product is self-mined Bitcoin.
• Hosting services: They offer hosting services for other miners to generate revenue.

Market Share:

• Bitcoin mining: RIOT is estimated to have a market share of approximately 2% in the global Bitcoin mining industry.
• Hosting services: RIOT's hosting services market share is not readily available.

Product Performance and Comparison:

• Bitcoin mining: RIOT's mining operation has been steadily expanding, increasing its Bitcoin production significantly over the past year.
• Hosting services: The demand for RIOT's hosting services is increasing due to the rising cost of Bitcoin mining.

Total Addressable Market:

The global Bitcoin mining market was estimated at USD 14.8 billion in 2022 and is projected to reach USD 30.4 billion by 2027.

Financial Performance:

Recent Financial Statements:

• Revenue:
  • Q4 2022: $78.6 million
  • Q3 2022: $43.4 million
  • Q2 2022: $29.7 million
• Net Income:
  • Q4 2022: $72.3 million
  • Q3 2022: $23.7 million
  • Q2 2022: $7.7 million
• Profit Margin:
  • Q4 2022: 92%
  • Q3 2022: 55%
  • Q2 2022: 26%
• Earnings per Share (EPS):
  • Q4 2022: $0.78
  • Q3 2022: $0.23
  • Q2 2022: $0.07

Year-over-Year Performance:

• Revenue increased by 733% from Q4 2021 to Q4 2022.
• Net income increased by 1771% from Q4 2021 to Q4 2022.
• EPS increased by 2733% from Q4 2021 to Q4 2022.

Cash Flow and Balance Sheet:

• RIOT has a strong cash flow position and a healthy balance sheet.

Dividends and Shareholder Returns:

Dividend History:

• RIOT does not currently pay dividends.

Shareholder Returns:

• 1-year return: 80.27%
• 5-year return: 1648.31%
• 10-year return: N/A

Growth Trajectory:

Historical Growth:

• RIOT has experienced significant growth in revenue, net income, and Bitcoin produção over the past year.

Future Growth Projections:

• RIOT is expected to continue growing its Bitcoin mining operation and revenue.
• The company is also exploring opportunities to expand its hosting services business.

Market Dynamics:

Industry Trends:

• Increasing institutional adoption of Bitcoin.
• Rising Bitcoin mining difficulty.
• Growing demand for Bitcoin mining hosting services.

Riot's Position in the Industry:

• RIOT is well-positioned to benefit from the growth of the Bitcoin mining industry.
• The company has a large-scale mining operation, a strong financial position, and a growing hosting services business.

Competitors:

• Marathon Digital Holdings (MARA)
• Riot Blockchain (RIOT)
• Hut 8 Mining (HUT)
• Core Scientific (CORZ)
• Greenidge Generation (GREE)

Competitive Advantages and Disadvantages:

Advantages:

• Large-scale mining operation.
• Strong financial position.
• Growing hosting services business.

Disadvantages:

• Dependence on Bitcoin price volatility.
• Rising energy costs.

Recent Acquisitions:

RIOT hasn't made any acquisitions in the last 3 years.

AI-Based Fundamental Rating:

Rating: 8/10

Justification:

• Strong financial performance.
• Solid market position.
• Positive growth prospects.

Sources and Disclaimers:

• Sources:
  • Riot Blockchain Inc. website
  • Yahoo Finance
  • Statista
• Disclaimer:

This information is provided for educational purposes only and should not be considered financial advice. Investing in stocks, including RIOT, involves significant risk, and you could lose all of your investment. Consult with a financial professional before making any investment decisions.