Is It Time To Buy Riot Platforms Stock?

August 21st, 2025 by Trefis Team
RIOT: Riot Platforms logo
RIOT
Riot Platforms

Riot Platforms stock (NASDAQ RIOT), a Bitcoin mining company, is currently trading at around $13 per share, reflecting a recent decline of 11% over the past month. This drop largely mirrors the 3.5% decrease in the price of Bitcoin during the same period. This raises a critical question for investors: Is RIOT Platforms a good buy at its current price of $13? We believe the answer is yes.

Our conclusion is based on a comprehensive analysis of the company’s valuation in comparison to its recent operating performance and financial health. We examined key areas, including growth, profitability, financial stability, and resilience during market downturns. Our analysis indicates that RIOT Platforms has a moderate financial condition and operating performance.

While its high valuation makes it a risky investment, we believe the potential for significant upside makes RIOT Platforms a worthwhile consideration for risk-tolerant investors. However, if you’re looking for an upside with less volatility than a single stock, consider the High Quality Portfolio. It has comfortably outperformed its benchmark—a combination of the S&P 500, Russell, and S&P Midcap indexes—achieving returns of more than 91% since its inception. Separately, see – SoundHound AI: SOUN Stock To $2?

How Does Riot Platforms’ Valuation Look vs. The S&P 500?

Going by what you pay per dollar of sales or profit, RIOT stock looks expensive compared to the broader market.

  • Riot Platforms has a price-to-sales (P/S) ratio of 7.8 vs. a figure of 3.2 for the S&P 500

How Have Riot Platforms’ Revenues Grown Over Recent Years?

Riot Platforms’ Revenues have grown considerably over recent years.

  • Riot Platforms has seen its top line grow at an average rate of 28.6% over the last 3 years (vs. increase of 6.1% for S&P 500)
  • Its revenues have grown 93.5% from $280 Mil to $542 Mil in the last 12 months (vs. growth of 5.0% for S&P 500)
  • Also, its quarterly revenues grew 118.5% to $153 Mil in the most recent quarter from $70 Mil a year ago (vs. 4.8% improvement for S&P 500)

How Profitable Is Riot Platforms?

Riot Platforms’ profit margins are considerably worse than most companies in the Trefis coverage universe.

  • Riot Platforms’ Operating Income over the last four quarters was $-375 Mil, which represents a very poor Operating Margin of -69.2% (vs. 18.5% for S&P 500)
  • For the last four-quarter period, Riot Platforms’ Net Income was $-95 Mil – indicating a very poor Net Income Margin of -17.5% (vs. 12.7% for S&P 500)

Does Riot Platforms Look Financially Stable?

Riot Platforms’ balance sheet looks strong.

  • Riot Platforms’ Debt figure was $870 Mil at the end of the most recent quarter, while its market capitalization is $4.6 Bil (as of 8/20/2025). This implies a strong Debt-to-Equity Ratio of 18.8%(vs. 20.9% for S&P 500). [Note: A low Debt-to-Equity Ratio is desirable]
  • Cash (including cash equivalents) makes up $314 Mil of the $4.3 Bil in Total Assets for Riot Platforms.  This yields a moderate Cash-to-Assets Ratio of 7.3% (vs. 6.8% for S&P 500)

How Resilient Is RIOT Stock During A Downturn?

RIOT stock has fared much worse than the benchmark S&P 500 index during some of the recent downturns. While investors have their fingers crossed for a soft landing by the U.S. economy, how bad can things get if there is another recession? Our dashboard How Low Can Stocks Go During A Market Crash captures how key stocks fared during and after the last six market crashes.

Inflation Shock (2022)

  • RIOT stock fell 95.8% from a high of $77.90 on 17 February 2021 to $3.29 on 28 December 2022, vs. a peak-to-trough decline of 25.4% for the S&P 500
  • The stock is yet to recover to its pre-Crisis high
  • The highest the stock has reached since then is 20.29 on 13 July 2023 and currently trades at around $12.00

COVID-19 Pandemic (2020)

  • RIOT stock fell 97.1% from a high of $38.60 on 19 December 2017 to $1.12 on 31 December 2019, vs. a peak-to-trough decline of 33.9% for the S&P 500
  • The stock fully recovered to its pre-Crisis peak by 9 February 2021

Global Financial Crisis (2008)

  • RIOT stock fell 91.4% from a high of $3,587.04 on 26 October 2007 to $309.60 on 20 February 2009, vs. a peak-to-trough decline of 56.8% for the S&P 500
  • The stock is yet to recover to its pre-Crisis high

Putting All The Pieces Together: What It Means For RIOT Stock

In summary, Riot Platforms’ performance across the parameters detailed above are as follows:

  • Growth: Very Strong
  • Profitability: Very Weak
  • Financial Stability: Strong
  • Downturn Resilience: Very Weak
  • Overall: Moderate

While Riot Platforms stock has performed moderately in the aforementioned areas, a deeper analysis reveals a more compelling picture.

Justifying Riot’s Valuation

Riot Platforms has a price-to-revenue multiple of 7.8x, which is higher than the benchmark index. However, this valuation appears justified when you consider the company’s strong average revenue growth of 29% over the past three years. This figure is also in line with its average valuation multiple of 7.5x over the last four years.

Strong Profitability Despite Complexities

When you adjust for non-cash expenses like stock-based compensation and one-time costs (such as acquisition-related or non-recurring items), Riot’s profitability is quite high. Its adjusted EBITDA margin for the last twelve months stands at an impressive 113%. Note that for crypto mining companies, reported GAAP profitability is often impacted by changes in the fair value of contingent consideration, which can make it appear lower. Also, look at Riot Platforms’ EBITDA (GAAP) Comparison.

Beyond the Numbers: Bitcoin’s Influence

Ultimately, the stock’s performance will be tied to the price of Bitcoin. If you believe Bitcoin will trend higher over the long term, Riot remains a solid proxy. In this context, a price of $13 per share isn’t expensive, especially when you consider the detailed valuation metrics.

Of course, our perspective could be wrong. Investors may not be willing to pay 7-8 times revenue for a Bitcoin proxy, particularly given the stock’s history of falling over 90% in past economic downturns. However, for a risk-tolerant investor with a 3-5 year horizon, we believe Riot is a good buy. This view is supported by the average analyst price target of over $17, which suggests a potential upside of nearly 40%.

While RIOT stock looks promising, investing in a single stock can be risky. On the other hand, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.

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