Riot Blockchain (RIOT)
RIOT stock has been in a sharp correction mode. In the last six months, the stock has declined by 47%. If there is a sustained reversal in Bitcoin, the worst of the downside might be over for the stock.
For Q3 2021, Riot reported revenue of $64.8 million with an average mining cost of $10,096. Further, for the quarter, Riot reported a hashing capacity of 3.1 EH/s.
From a growth perspective, Riot expects to increase capacity to 12.8EH/s by Q4 2022. With four-folds jump in capacity, the company is positioned for quarterly revenue in excess of $250 million. Therefore, the annual revenue visibility for Riot and Marathon is likely to be similar once the current expansion is completed.
Last year, Riot Blockchain acquired the largest Bitcoin mining facility in the United States. The facility is likely to have a capacity of 750 MW. With the company looking at vertical integration as a long-term strategy, EBITDA margin is likely to remain attractive.
From a financial perspective, Riot reported net cash of $57.9 million as of September 2021. Further, in Q4 2021, the company raised $600 million in an at-the-market offering. Riot is therefore fully financed for the aggressive expansion plans for 2022.
