Despite 2 Scary Words - Bitcoin And Diversification, I'm A Riot Platforms Fan
Summary
- Riot Platforms is a challenging stock. It involves two words that should scare off the fainthearted… (1) bitcoin and (2) diversification.
- For many, the word “bitcoin” is an automatic red flag… gambling, etc. But actually, it and crypto are gaining respectability and even functionality (as real money).
- RIOT is a big-time miner. The number of possible new coins is capped. We won’t reach the end till about 2140, but growth will decelerate as we progress toward then.
- So, it makes sense for RIOT to diversify. Like other miners, it’s eyeing the data center business, a power-hungry cousin to mining. Success here won’t be automatic for anybody. But….
- I think RIOT will succeed. It has a lot of good land near Dallas, an important Tier 1 data center region. This contributes to my story-oriented “Buy” rating.
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in RIOT over 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.
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