Riot Blockchain, Inc.
Riot Blockchain, Inc. (NASDAQ: RIOT) is a cryptocurrency mining company that uses specialized computers outfitted with application-specific integrated circuit (ASIC) chips to solve complex cryptographic algorithms in support of the Bitcoin blockchain in exchange for cryptocurrency incentives (primarily Bitcoin). Previously, the company mined Bitcoin cash and litecoin; however, it has shifted its concentration to mining Bitcoin.
Why should investors Book Profits?
Valuation Methodology: EV/Sales Multiple Based Relative Valuation
(Analysis by Kalkine Group)
* % Premium/(Discount) is based on our assessment of the company's NTM trading multiple after considering its key growth drivers, economic moat, stock's historical trading multiples versus peer average/median, and investment risks.
RIOT's stock price has been volatile throughout the year. It has fallen 47.68% in the past six months and surged 30.29% in the past week. We have valued the stock using the EV/Sales-based relative valuation methodology and arrived at a target price of USD 15.00. Considering the significant volatility in the stock price, increase in losses, current valuation, and other technical indicators, we believe the fundamentals are adequately reflected at the current trading levels. Hence, we recommend a 'Sell' rating on the stock at the closing price of USD 19.65 as of February 09, 2022.
One-Year Technical Price Chart (as of February 09, 2022). Source: REFINITIV, Analysis by Kalkine Group
* The reference data in this report has been partly sourced from REFINITIV.
* All forecasted figures and industry information have been taken from REFINITIV.