Why This Riot Blockchain Analyst Is Bullish On Bitcoin Mining Opportunity

Riot Blockchain Inc RIOT currently operates around 2.4% of the global Bitcoin mining capacity, according to BTIG.

The Riot Blockchain Analyst: Gregory Lewis initiated coverage of Riot Blockchain with a Buy rating and $45 price target.

The Riot Blockchain Takeaways: While all of the company’s mining rigs are located in the U.S., the country’s power grid is among the few in the world that have “excess power capacity more often than not, reliability and very attractive price per KWh depending on location," Lewis said in the initiation note.

Riot Blockchain’s mines are located in two of these attractive price per KWh locations, the analyst said. 

“Mining in the US also looks to have the added benefit of stability (earlier this year, China cracked down on BTC mining, which greatly reduced global hash capacity leaving many BTC miners stranded off-line). Additionally, the recent acquisition of Whinstone US (hosting center for crypto mining equipment) should allow RIOT to control its own destiny in the hunt to plug-in additional mining equipment over the next few years,” he said. 

RIOT Price Action: Shares of Riot Blockchain were trading 1.2% higher to $32.28 at last check Friday.