Riot Platforms Posts Record Q4: Analyst Concerned About Operating Costs, Lack Of Details

Shares of Riot Platforms Inc RIOT tanked in early trading on Tuesday, despite the company reporting a revenue beat for fiscal 2024.

Although the company reported record revenues and profits as well as improving mining efficiency for the fourth quarter, its operating costs came in higher than its guidance, according to JPMorgan.

The Riot Platforms Analyst: Analyst Reginald Smith maintained an Overweight rating on the stock.

The Riot Platforms Thesis: Management highlighted the HPC (high-performance computing) opportunity of their Texas sites, indicating "scale and proximity to major metro areas," Smith said in the note.

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"Riot is seeing interest from hyperscalers and large AI companies, but did not report any material updates," he added.

The company announced the acquisition of electrical engineering service provider E4A Solutions for $52 million, which is planned to become part of its Engineering Arm, the analyst stated.

"Operationally, Riot is showing promising improvement, both in terms of mining uptime and progress towards signing an HPC deal, but operating expenses continue to run high," Smith further wrote.

RIOT Price Action: Shares of Riot Platformshad declined by12.23% to $8.77 at the time of publication on Tuesday.

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