Blockchain miner Riot Blockchain (NASDAQ:RIOT) continues to witness a significant rise in its hash rate capacity with the accelerated deployment of high-tech and new-generation miners. Riot is engaged in building, supporting, and operating blockchain technologies and is one of the largest U.S.-based publicly traded Bitcoin (BTC-USD) miners in North America.
Delighted with the operational progress, Jason Les, CEO of Riot, said, “Our team has expanded Riot’s total deployed fleet by 9,070 miners and increased our hash rate capacity to an all-time high of 5.6 EH/s… In the coming months, we will remain focused on aggressively increasing our deployed hash rate as we work towards our goal of reaching 12.5 EH/s in the first quarter of 2023.”
Riot’s BTC Mining Falls but Hash Rate Jumps
In September, Riot produced 355 bitcoins, a decline of about 13% compared to September 2021 and lower than August’s production of 374 BTC.
As of September end, Riot produced and held approximately 6,775 bitcoins. During the month, it sold 300 BTC, generating $6.1 million in net proceeds. The company currently has a deployed fleet of 55,728 miners and a hash rate capacity of 5.6 exahash per second (EH/s).
On the deployment progress, Riot stated that it has received 14,755 latest generation S19-series miners. Notably, on the deployment of the staged miners, Riot expects its hash rate capacity to reach approximately 6.4 EH/s shortly.
Interestingly, apart from hosting self-mining operations, Riot also hosts about 200 MW of institutional bitcoin mining clients.
What is the Target Price for RIOT stock?
On TipRanks, the average Riot Blockchain target price is $13.67, which implies an impressive 90.9% upside potential to current levels. With five Buys and one Hold rating, Riot stock commands a Strong Buy consensus rating. Amid the slump in the value of cryptocurrencies, RIOT stock has lost 68.5% so far this year.
Closing Note – Persistent Headwinds Haunt Crypto Stocks
Crypto stocks, including blockchain miners, are facing several headwinds, including the persistent crypto winter, intense competition, regulatory hurdles, and an overall weak macro backdrop.
Furthermore, hackers and scammers continue to siphon off billions of dollars from the crypto market. Yesterday, a WSJ report stated that crypto exchange Binance was robbed of $100 million in a ‘cross-chain bridge’ hack on its Binance Smart Chain blockchain network. The company immediately suspended transactions and fund transfers on its network.
These challenges continue to impact the production capacities of miners as well as restrain their financial performance. Nonetheless, analysts remain highly optimistic about Riot Blockchain’s long-term stock trajectory with accelerating hash rate capacity and further mining progress once the headwinds are clear.