2024-01-24 04:23:16 ET
Summary
- At best, Riot Platforms could be a shareholder-diluting & loss-making business. In the worst (and also the most likely) case scenario, RIOT could go out of business.
- Cost Structure Breakdown Analysis reveals Bitcoin has to trade above $180,000 post-halving for RIOT's business to remain feasible.
- Our ideal entry would be at a $1bn market cap, which is possible considering RIOT was trading at $500mil just about a year ago.
Introduction
So far, Riot Platforms ( RIOT ) has yet to find a place in our portfolio, our previous thesis showed that RIOT was overvalued at $3bn and expected about 10% shareholder dilution over the next few quarters as RIOT continues to ramp up mining capacity. 6 months later, RIOT is now trading at $2.1bn while shareholder dilution stands at 17% since our last coverage. So far, RIOT has performed according to our expectations....
Read the full article on Seeking Alpha
For further details see:
Riot Platforms: A Potential Core Scientific In The Making