Riot Platforms Inc (RIOT)

[TREND1]

RIOT DAY



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JLS Friday, 01/12/18 09:14:05 PM
Re: None
Post # of 1612

RIOT, the Company:

Riot Blockchain, Inc. builds and supports various blockchain technologies. The Company invests primarily in Bitcoin and Ethereum blockchains.

Therefore, an investment in RIOT is an investment in an investor -- you know, like you and me. How clever!

The Company only has 7 full-time employees. A company-wide party could fit in my bathroom.

The Company was Operating Cash Flow negative by $4.84M over the last year, and was also negative Levered Free Cash Flow by $211K.

The Company has a Price/Sales ratio of 26,272. It last reported an Operating Margin of -48,506%, and Return on Equity of -61%.

The Company has no Long Term Investments and its Property Plant and Equipment are worth a little over $41k. My studio is worth more than that! And I can put more than 7 people in it.

The Company does have cash above debt of about $13M, and can always raise more cash by issuing more shares of stock. Don't you wish you could do that? And with no earnings, they'll eventually have to do that because, as I wrote earlier, the Company is Annual Operating Cash Flow negative by $4.84M.

OK, I got this thing figured out. I'm going to short the crap out of this piece of junk and use options so that I have lots and lots of leverage on a low initial investment cost.




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Tuesday, January 9, 2018
Riot BlockChain: Potential Red Flags

Summary: Riot Blockchain is a former Biotech company that recently pivoted into BlockChain. The stock price has soared since this pivot, but there appears to be many red flags.

Riot BlockChain appears to be a Pump and Dump. The more research I do on Riot, the more red flags I find. The most obvious case of potential fraud for me to prove appears to be Riot overpaying and hyping their mining equipment.

On November 1st, Riot Blockchain spent over $12 Million in stock and also $1 Million in future royalties for crypto mining equipment that was worth around $2 Million from a company called Kairos Global Technology Inc. Also, notice that this company was formed on October 19th 2017, under 2 weeks before the purchase.
( Entity Details - Secretary of State, Nevada shows when Kairos was formed )

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Here is the PR that Riot put out on November 2nd:
Riot Blockchain Enters Agreement for Acquisition of 1,200 Bitcoin Mining Machines Manufactured by Bitmain

It is very clear what mining equipment they were buying.

Riot’s stock price was $6.95 on November 1st. Riot purchased the mining equipment for 1,750,001 shares of Riot stock and also $1,000,000 in future royalties to “Certain of the shareholders of Kairos” So, they paid $12,162,500 worth of Riot stock and $1,000,000 in cash for equipment worth around $2 million. The equipment purchased is below:

700 AntMiner S9s and 500 AntMiner L3s, all manufactured by Bitmain.
( https://ir.riotblockchain.com/sec-filings-email/content/0001079973-18-000010/riot_s3.htm )

Anybody or any company was easily able to purchase this EXACT equipment online from Bitmain (the company who made the mining equipment)