Riot Blockchain Stock Appears Poised for a Rally By TipRanks
Ark Invest CEO Cathie Wood has reiterated her long-term price target of $500,000 for . Although this may be unfounded, it is possible to believe that the goal was achieved. However, Bitcoin adoption is on the rise, both from institutional investors and individuals.
It might be a smart idea to have a portfolio of cryptocurrency investments in the unregulated sector. There are also listed companies which provide proxy exposure to cryptocurrency.
Riot Blockchain is one the most intriguing names in cryptocurrency stocks. RIOT stock trending lower over the last six-months with a correction 47.6%. However, the stock’s rise has continued to be impressive at 863% during the last twelve months. (See RIOT stock charts on TipRanks)
After some big movement and volatility, RIOT stock finally seems to be in a consolidation range. Riot Blockchain is a company that I believe will see strong growth over the next few years.
Strong Quarterly Numbers
Supported by accelerated mining activity, Riot reported healthy numbers in Q2 2021. The company’s mining revenue increased by 1,540% to $31.5 million. For the same period, the company’s mining revenue margin was 70%, as compared to 25% in the prior year period.
It’s also worth noting that as of Q2 2021, the company reported cash and Bitcoin holdings of $195.4 million. The company has ample cash and Bitcoin holdings to support aggressive growth.
Best Part of Growth to Come
For Riot Blockchain, the best part of revenue and cash flow growth is still to come. Riot mined 491 Bitcoins during Q1 2021. The number of Bitcoins that were mined in the quarter ended with 675.
Riot mined 441 BTCs last August. This was at a hashrate capacity of 2.2 EH/s. This has resulted in increased mining activity, which is expected to lead to higher revenues and more cash flow.
Riot has set a goal to havehing capacity at 7.7 EH/s in Q4 2022. This would allow Riot to mine 1,544 Bitcoins per month by Q4 20202.
The company can expect monthly revenues to reach $77.2million by 2022, assuming Bitcoin prices at $55,000 This could also indicate an annualized revenue of between $900m and $1billion.
Riot is likely to continue expanding. As the hashing capacity increases, the company’s Bitcoin holdings will also swell. It can then be used to expand or diversify projects.
Riot purchased Whinstone US on May 20, 2021. The latter is the owner of North America’s largest Bitcoin mining and hosting facility.
Wall Street’s Take
According to TipRanks’ analyst rating consensus, RIOT stock comes in as a Strong Buy, with four Buys assigned in the past three months.
There is a average target price of $47.75 per share for RIOT, which implies a potential upside of 63.7% from current levels.
The cryptocurrency market can be likened to the early stages of the technology boom. Consider gaining exposure to this highly-growth asset.
The company’s potential growth is impressive and Riot Blockchain appears attractive.
Riot Blockchain’s financial flexibility will enable it to grow its presence in the crypto world.
Disclosure: Faisal Humayun had no position at the time this article was published.
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