Riot Blockchain: Recent Acquisition Is A Testament To Management's Long-Term Thinking

SingularLogo

Riot Blockchain: Recent Acquisition Is A Testament To Management's Long-Term Thinking

 

August 18, 2021

 

Price (as of close on August 17, 2021)

$32.76

 

Rating

BUY

 

Price Target 

blocked

 

Riot Blockchain is the largest publicly traded cryptocurrency mining company in North America. Its mining operations are based out of Coinmint LLC’s facility in Massena, New York and the recently acquired Whinstone facility in Texas.

 

 

Riot Blockchain Inc. (RIOT)

Riot Blockchain is the largest publicly traded cryptocurrency mining company in North America. Recent large-scale purchase orders of Antminers and the acquisition of Whinstone Mining has positioned the Company to significantly increase its Bitcoin mining hash rate. We initiate with a BUY rating and a blocked price target.

 

sr article 8 27 2021 img 1

 

Investment Thesis

  • Riot Blockchain is the largest publicly traded cryptocurrency mining company in North America.
  • Recent large-scale purchase orders of Antminers and the acquisition of Whinstone Mining has positioned the Company to significantly increase its Bitcoin mining hash rate.
  • The acquisition of Whinstone adds 300 MW of capacity (expandable up to 750 MW) and provides Riot with a clear and de-risked path to growth.
  • The declines in network hash rates following the crackdown on crypto mining in China is bullish for North American miners. The decrease in competition has created an enhanced profitability window for miners like Riot.
  • The company is poised to grow revenues and earnings over the near-to-medium term. We initiate coverage with a BUY rating and a price target of blocked.

 

PRIMARY RISKS

  • The Company’s performance in linked to the market price of Bitcoin which has high volatility.
  • Cryptocurrency regulation, both in the United States and internationally, could adversely affect the price of cryptocurrencies and the cryptocurrency mining industry.

 

We at Singular Research hope you enjoyed this article and would like to invite you to try the full version of our service for free for 2-weeks on Seeking Alpha.

Please click here for your free trial!

Tags: Latest Updates