Riot Platforms: I Doubt It Will Ever Be A Buy

Joseph Parrish
2.28K Followers

Summary

  • Riot Platforms is one of the largest bitcoin miners and has developed one of the most cost-effective systems for mining it.
  • Despite this, operating results have consistently been a loss, given the capital-intensive nature of this business.
  • Bitcoin's design to resist effects of inflation makes the business difficult to scale profitably.
Bitcoin network concept on digital Screen

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An acquaintance of mine asked for my opinion on Riot Platforms (NASDAQ:RIOT), a company whose primary operation is mining Bitcoin (BTC-USD) for sale. I've avoided dabbling in cryptocurrencies and anything related to it so far. In short, I've yet to

This article was written by

2.28K Followers
My articles are written with a mind to owning a stock for years, not trying to predict price movements in a few months. I don't do target prices; I do valuations.I first entered investing in 2020 as an individual value investor, keen to understand the fundamentals of businesses and buy their shares at attractive prices. From May 2022 to May 2023, I worked as an investment advisory representative at Fidelity Investments. I am now self-employed through other ventures.Part of my technique is to write an article as though it is a letter to my future self. I look at it as a chance for my ideas to improve and grow as I follow each company. As such, I tend to start from a place of caution. I used to write many Sell pieces. As of March 2024, I stopped doing that, and I simplified my approach to "Buy or Don't Buy." Many of my articles will either be Buy or Hold going forward. I have yet to issue a Strong Buy rating to any security.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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