RIOT - Is Riot Platforms Stock a No-Brainer Buy After Posting Record Numbers?
2024-05-11 11:35:00 ET
Riot Platforms (NASDAQ: RIOT) is one of the top Bitcoin mining companies you can invest in today. Year to date, however, the stock has been struggling, and it's down 30%. But recently the company posted some impressive earnings numbers, even turning a healthy profit. Could Riot Platforms be an underrated stock to buy right now?
On May 1, Riot Platforms released its earnings results for the first three months of 2024. During the period, the company reported a profit of $211.8 million, which was a new quarterly record for the business. Its adjusted earnings before interest, taxes, depreciation and amortization ( EBITDA ) of $245.7 million was another record high.
The caveat, however, is that the results were largely due to changes in fair value. With Bitcoin mining companies, gains and losses can play a significant role in whether the business turns a profit or not. Last quarter, for instance, changes in the fair value of Bitcoin had a positive $234.1 million impact on Riot's operations, which was far higher than all of its other expenses. Bitcoin mining costs of $41.1 million rose by 88% year over year, and selling, general, and administrative costs totaling $57.7 million were more than four times the $12.7 million Riot reported for that line item a year ago.
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Is Riot Platforms Stock a No-Brainer Buy After Posting Record Numbers?