Analyst Sees Strategic Moves Driving Riot Platforms' HPC Expansion And Profitability

JP Morgan analyst Reginald L. Smith expressed views on Riot Platforms, Inc.‘s (NASDAQ:RIOT) recently released third-quarter FY25 results.

Earnings Release

Riot reported revenue of $180.2 million, beating analyst estimates of $172.6 million. The Bitcoin (CRYPTO: BTC) mining company reported earnings of 26 cents per share, beating estimates of 21 cents per share.

Riot said it produced 1,406 Bitcoin during the quarter, up from 1,104 in the prior year’s quarter. The company’s average cost to mine was $46,324 in the period.

Analyst View

The analyst notes that Coins mined fell 1% quarter-over-quarter despite a 9% rise in average hashrate, due to seasonal curtailments and an 8% increase in network hashrate.

Also Read: Analyst Says Bitcoin Mining Revenue And EBITDA Could Rise

Meanwhile, strategic hires and cost controls, combined with BTC gains and higher Engineering revenue, drove record quarterly cash operating profit, writes the analyst.

The analyst notes that Riot unveiled its HPC Basis of Design and will begin building two 112 MW data center shells in Corsicana in the first quarter of 2026.

The analyst says that the sequential improvement in operating expenses is encouraging, and they look forward to monitoring construction updates and tenant negotiations between now and 2027.

Price Action: RIOT shares are down 4.17% at $20.21 at the last check on Friday.

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• Bitcoin Mining Not End Goal, But ‘Means To An End’ To Boost Data Center Business, Says Riot Platforms CEO

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