Shares of Riot Blockchain (RIOT) climbed 1.5% in early trade on Tuesday after the Bitcoin mining company’s Q2 earnings surpassed analysts’ expectations.
Earnings stood at $0.22 per share against a net loss of $0.31 per share in the year-ago quarter. The street had estimated the company to post earnings of $0.01 per share. Mining revenues came in at $31.5 million, below the analysts’ estimates of $32.6 million. The top-line, however, increased significantly from $1.9 million in the year-ago quarter.
The company reported 38% sequential growth in total mined Bitcoin to 675 in the second quarter. The average Bitcoin price used to calculate Riot’s second-quarter 2021 mining revenues was about $46,600. Also, Riot held total cash and Bitcoin of $195.4 million as of June 30, 2021. (See Riot stock charts on TipRanks)
The CEO of Riot, Jason Les, said, “Riot is aggressively expanding its capacity at Whinstone, which is expected to provide the critical infrastructure necessary to successfully execute on driving continued growth for the Company.”
Following the release, H.C. Wainwright analyst Kevin Dede maintained a Buy rating on the stock but raised the price target to $50 from $40. The new price target implies 39.9% upside potential.
Dede said, “With a runway to self-mine and host the available 750 MW, we see Riot driving higher sales levels than previously anticipated and reinforcing our bullish perspective.”
Consensus among analysts is a Strong Buy based on 4 unanimous Buys. The average Riot price target stands at $47.25, implying upside potential of 32.2%.
RIOT scores a 9 out of 10 on TipRanks’ Smart Score rating system, suggesting that the stock is likely to outperform market averages.
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