Lưu trữ cho từ khóa: Riot Blockchain

Bitcoin

Analysts predict Bitfarms stock doubling after Riot settlement

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H.C. Wainwright analysts believe Bitfarms’ stock is set for growth following a settlement with Riot Platforms that ends a six-month-long hostile takeover attempt.

Earlier on Sept. 23, Bitfarms and Riot Platforms reached an agreement to end Riot’s bid to take over the Canadian Bitcoin (BTC) mining firm. 

According to H.C. Wainwright analysts, Bitfarms’ stock should hit $4 per share. The analysts maintained their “Buy” rating on Bitfarms, viewing the company’s shares as undervalued, according to a note shared with crypto.news.

At the time of writing, Bitfarms’ stock (NASDAQ: BITF) is trading at $2.06 per share. Based on 2024 revenue estimates, Bitfarms’ shares trade at roughly a 40% discount compared to other Bitcoin mining firms, the analysts noted.

Details of the Bitfarms deal

This deal marks the conclusion of Riot’s pursuit, which began in April when it offered $950 million to acquire Bitfarms – a proposal rejected by Bitfarms’ board as undervalued. 

Following the rejection, Riot acquired 19.9% of Bitfarms’ outstanding shares and sought to change the board structure through a special shareholder meeting, a move that has now been withdrawn as part of the settlement.

Under the agreement, Bitfarms will expand its board to six members and will nominate an independent director, with Riot agreeing to support all proposed measures. Riot will also gain the right to acquire additional Bitfarms shares, provided it holds at least 15% of outstanding shares.

Analyst’s thoughts

According to the analysts, this agreement is a significant win for Bitfarms, removing a major overhang on the company’s shares.

The analysts noted that Bitfarms can now focus on its 2024 growth strategy, aiming to achieve its target of 21 exahashes per second by the end of next year. They view this as a crucial step for Bitfarms to regain investor confidence and execute its expansion plans without distraction.

The analysts also believe that this settlement benefits Riot, as it avoids the potential for a costly proxy battle with Bitfarms. 

The analysts’ $4 price target is based on a 6.5x enterprise value-to-revenue multiple for 2024, which aligns with valuations applied to other Bitcoin mining peers. However, they caution that risks such as Bitcoin price volatility, construction delays, and potential shareholder dilution remain.

In the wake of the settlement, Bitfarms shares rose 1.7%, while Riot’s shares climbed 1.3%, reflecting the market’s positive reaction to the resolution.

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Bitcoin

Bitcoin mining analyst sees significant organic growth opportunities for Riot stock

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Bitcoin miner Riot Platforms’ stock is a buy due to its significant organic growth opportunities, H.C. Wainwright analyst Mike Colonnese said in a note.

The Riot Platforms stock is down 34% year-to-date amid a broader correction for Bitcoin (BTC) and altcoins that also has crypto stocks down. But in a research note shared with crypto.news, Colonnese argues for the bitcoing mining stock to see further growth as it eyes expansion.

He has reiterated a buy rating for RIOT with a $17 price target.

Riot’s financial results

Riot released its second quarter results on July 31, revealing it recorded substantial operational growth during the quarter. Jason Les, CEO of Riot, also highlighted that the company made progress on its long-term growth strategy.

According to H.C. Wainwright’s Colonnese, Riot “officially raised its 2024 and 2025 outlook and reported 2Q24 top line results.” Despite the financial results being mixed, the analyst notes they exceeded estimates on several metrics, including stronger engineering revenues. Riot also surpassed its hash rate guidance for the quarter, reaching 21.4 exahashes per second.

The 77% quarter-on-quarter growth in the three months ending June 30 meant Riot reached 22 EH/s, the fastest growth rate in hashrate for public miners tracked by H.C. Wainwright, Colonnese added.

Expansion efforts

Bullish projections for RIOT also come as the miner looks to expand its capacity further. Recently, Riot acquired Kentucky-based BTC miner, Block Mining.

The acquisition puts Riot on track towards achieving its 2024 and 2025 growth objectives.

Despite the challenges it faced with plans to acquire Bitcoin miner Bitfarms, Riot is still on course for success.

Per the H.C. Wainwright note, the company is well-positioned for the next 18 months. A major reason is its balance sheet, which boasts over $1 billion of liquidity compared to about $694 million of estimated capex requirements to the end of 2025.

“With low power costs, good scale, and a strong balance sheet, we believe Riot is competitively positioned to benefit from the next leg of the bull market cycle for BTC,” the analyst concluded.

Riot’s guidance for end of year 2024 is growth to a hashrate of 36.3 EH/s and 56.6 EH/s by end of 2025.

Meanwhile, the RIOT stock traded around $9.97, down 2.2% at 10:27 am ET on Aug. 1, 2024.

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Công nghệ

Riot buys 10.23m more Bitfarms shares in July, increasing stake to 15.9%

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Riot Platforms has increased its acquisition efforts of Bitfarms by buying over 10 million more shares this month.

According to a filing with the US Securities and Exchange Commission on July 31, Riot, a Bitcoin (BTC) mining company, now owns 71.56 million Bitfarms shares, valued at $159.1 million.

This means Riot now holds a 15.9% stake in Bitfarms. According to the SEC filing, Riot purchased Bitfarms shares throughout the month of July, ranging from $2.48 to $2.84 per share.

Riot has an earnings call after trading hours on July 31. Its stock is currently trading at $10.61 per share. 

The battle between Riot and Bitfarms

Riot announced a $950 million acquisition bid for Bitfarms in late May, claiming that Bitfarms’ founders were not acting in the best interests of all shareholders. They stated that their proposal was rejected by the Bitfarms board without substantive engagement.

Bitfarms responded by stating that Riot’s offer “significantly undervalues” its growth prospects. 

Bitfarms then implemented a shareholder rights plan, often called a “poison pill,” to protect its strategic review process from hostile takeover attempts by Riot Platforms.

Riot owned 11.62% of Bitfarms’ shares at the time of the acquisition bid, Bitfarms’ board unanimously supported the poison pill plan to ensure their shareholders’ interests are safeguarded.

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Phân tích

Bitcoin mining stocks MARA and RIOT are rising: beware of an earnings shocker

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Bitcoin mining stocks like Marathon Digital and Riot Platforms rose by over 4% on Monday as cryptocurrencies bounced back. 

Bitcoin price made a bullish breakout

Marathon Digital (MARA) shares rose to $22.45 while RIOT jumped to $11.7. Other Bitcoin (BTC) mining companies like CleanSpark, Bitfarms, and Core Scientific also rose.

MARA vs RIOT stocks | Source: crypto.news

This rebound happened as Bitcoin rose above $70,000 for the first time since June 10. It has moved into a local bull market, rising by almost 30% from its lowest point in July.

Bitcoin’s rally was notable because it flipped the falling broadening wedge pattern, a popular bullish sign. That rebound implies that Bitcoin could continue rising as buyers target the key point at $72,000, where it formed a double-top pattern in May and June. 

Bitcoin price | chart by TradingView

Bitcoin mining stocks thrive when the coin is rising because they are among the biggest holders. Data shows that Marathon Holdings holds 20,000 Bitcoins on its balance sheet. Just last week, the company bought more coins worth $100 million.

Riot Platforms is the fifth biggest holder after MicroStrategy, Marathon, Tesla, and Coinbase. It has 89,000 coins while Hut 8 Mining holds 89,100. 

These companies also benefit when they sell their mined coins. For example, Marathon Digital’s annual revenue rose from $117 million in 2022 to $387 million as Bitcoin rose to almost $50,000 in 2023. 

Riot Platforms (RIOT) and Marathon Digital (MARA) earnings

RIOT and MARA stocks could find some resistance when they publish their second-quarter financial results on Wednesday and Thursday, respectively.

These will be important results because they are the first ones since the recent halving event in April. Bitcoin price also remained in a consolidation phase during the quarter.

Since then, most mining companies have reported weak mining data. Marathon mined 590 Bitcoins in June, down from 979 in June 2023 and down from 616 in May. 

Similarly, Riot Platforms mined 255 coins in June, a big drop from the 460 it mined in June 2023. 

The average estimate is that Marathon Digitals’ revenue rose by 93% YoY in Q2 to $157 million. That increase will be because of higher Bitcoin prices. It made $165 million in the first quarter. Riot Blockchain made $79.3 million in Q1 and is expected to have made $72.2 million in Q2.

Historically, quarterly earnings have an impact on stocks. For example, Tesla stock retreated last week after releasing weaker-than-expected Q2 numbers. 

Fortunately for Bitcoin mining stocks, industry insiders remain upbeat that Bitcoin will continue rising. MicroStrategy’s Michael Saylor expects BTC to rise to $13 million while Michael van de Poppe believes that it has more upside as long as it stays above $62,000. Plan B expects Bitcoin to double in the near term.

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Bitcoin

Analyst: Riot acquisition price of Block Mining is ‘justified,’ improves its hash rate

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Analysts from H.C. Wainwright claim that Riot’s acquisition of Block Mining is a great move for the company and its hash rate.

Riot Platforms, Inc. has significantly enhanced its growth and operational capacity by acquiring Kentucky-based Block Mining, Inc. for $92.5 million.

The acquisition consists of $18.5 million in cash and $74 million in Riot common stock, with an additional earn-out consideration of up to $32.5 million contingent on achieving specific milestones. 

“With a combined 60 MW of existing developed capacity, and a pipeline to rapidly scale to over 300 MW, this acquisition expands our operations and further enhances our path towards our growth target of 100 EH/s,” Riot Platforms CEO Jason Les said in a release.

Despite the high price tag, analysts at H.C. Wainwright believe the acquisition cost is justified due to BMI’s substantial capacity and expansion potential.

Riot is expanding its capacity and operations

Block Mining operates 60 MW across two data centers in Kentucky, adding 1 EH/s to Riot’s portfolio. The Commerce Drive data center in Paducah, KY, operates 35 MW, while the Blue Steel site in Calvert City, KY, utilizes 7 MW with an 18 MW vacancy.

Riot plans to expand these capacities significantly, targeting 110 MW by the end of 2024 and 305 MW by the end of 2025. This expansion will potentially increase Riot’s hash rate to 36.3 EH/s by the end of 2024 and 56.6 EH/s by the end of 2025.

Riot’s long-term growth and diversification

This acquisition aligns with Riot’s long-term goal of reaching 100 EH/s. Additionally, it diversifies Riot’s geographic footprint beyond Texas, where all its mining operations were previously located.

Analysts see this as a prudent use of capital, enhancing Riot’s operational efficiency and reducing geographic risk.

Riot’s financial risks

Post-acquisition, Riot expects to spend $345 million in capital expenditures to fully develop BMI’s sites. Despite the substantial investment, Riot’s strong liquidity position, with $639 million in cash and significant Bitcoin holdings, supports this expansion. 

Analysts have raised Riot’s 2024 revenue estimate to $344.2 million and adjusted EBITDA estimate to $321.7 million, reflecting confidence in the acquisition’s potential to drive growth and profitability.

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Phân tích

Bitcoin mining stocks brace for technical risk

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Bitcoin mining stocks continued their recovery as Bitcoin continued rising during the weekend.

Bitcoin mining stocks are rising

Bitcoin has risen by over 26% from its lowest point this month as bulls anticipate an eventual move to $70,000.

Core Scientific (CORZ) stock rose by 2.3% on Monday, while Riot Platforms (RIOT), Marathon Digital (MARA), Iris Energy (IREN), Cipher Mining (CIFR), and CleanSpark (CLSK) jumped by over 2%.

Bitcoin mining stocks CORZ, RIOT, MARA, IREN, and CLSK

The companies have risen as investors remained optimistic that Bitcoin will continue its recovery this year. Polymarket saw 67% of users expect Bitcoin to jump to $70,000 this month, a big increase from the current $67,000.

A likely catalyst for this rally is polls indicating that Donald Trump will beat Kamala Harris in the next election.

Bitcoin will likely rise ahead of the upcoming Bitcoin event in Nashville, where Donald Trump will address the attendees. He will also attend a campaign fundraiser, for which tickets are selling for over $800,000. 

Bitcoin mining stocks do well when BTC is in an uptrend, which leads to more revenues and profits. This price action is important because many miners produced fewer coins after the halving event in April. 

The companies have also risen as signs of industry consolidation emerge. Riot Platforms made a bid for Bitfarms earlier this year while Core Scientific rejected a buyout by CoreWeave. Just last week, Bloomberg reported that Cipher Mining was considering a sale after receiving bids. 

More Bitcoin mining companies could attract acquisition offers from firms seeking to grow their artificial intelligence (AI) footprint.

Bitcoin technicals are sending mixed signals

Still, these companies face technical risks as chart patterns send mixed signals about Bitcoin prices. In a note on Saturday, Peter Brandt, a veteran prop trader, noted that the current formation was not a bullish flag. Instead, he believes that Bitcoin is in a downtrend.

However, Bitcoin looks to be forming a falling broadening wedge pattern, a popular bullish sign. In line with this, Bitcoin has moved into the third phase of the three-dives pattern, pointing to more upside. 

Bitcoin price chart

Additionally, Bitcoin has remained above the 200-day moving average, pointing to more upside. Therefore, as Michael Novogratz noted in June, more Bitcoin upside will only be confirmed if it rises above the YTD high of $73,400.

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Bitcoin

Bitcoin miner Riot Platforms acquires rival Block Mining for $92.5m

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Colorado-based Bitcoin mining company Riot Platforms has acquired its Kentucky-based competitor Block Mining to increase its operational capacity by 16 EH/s.

Bitcoin (BTC) miner Riot Platforms has acquired Block Mining, a Kentucky-based crypto mining firm, for $92.5 million to expand its operational resources. The company said in a Jul. 24 press release the deal immediately adds 1 EH/s to its self-mining hashrate “with a potential to add up to a total of 16 EH/s by the end of 2025.”

The acquisition includes a $18.5 million cash payment and $74 million in Riot common stock.

“With a combined 60 MW of existing developed capacity, and a pipeline to rapidly scale to over 300 MW, this acquisition expands our operations and further enhances our path towards our growth target of 100 EH/s.”

Riot Platforms CEO Jason Les

Riot also plans to invest an additional $32.5 million through 2025 to enhance Block Mining’s power capacity, which includes two operational sites in Kentucky, the press release reads. By the end of 2024, Riot aims to increase Block Mining’s infrastructure to support 110 MW for self-mining operations.

Amid the news, Riot shares plunged by 5.3% to $11.59, according to data from Google Finance.

The acquisition comes a few months after Riot Platforms proposed acquiring its other rival Bitfarms for $950 million. However, Riot subsequently withdrew its proposal, citing an inability to engage with Bitfarms’ current board on a potential merger. Riot then requested a special shareholder meeting to address governance issues at the Toronto-based competitor.

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Bitcoin

Bitfarms adopts ‘poison pill’ amid Riot Platforms’ takeover attempt

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Bitfarms has adopted a shareholder rights plan to protect its strategic review process from Riot Platforms’ takeover attempts.

Bitfarms, a Toronto-headquartered Bitcoin mining company, announced in a Jun. 10 press release that its board of directors unanimously approved the adoption of a shareholder rights plan to safeguard the integrity of its strategic alternatives review process.

The Rights Plan (commonly referred to as a “poison pill”) aims to protect the interests of Bitfarms’ shareholders by preventing any potential hostile takeover attempts. The move comes in response to recent actions by Riot Platforms, a Colorado-based Bitcoin mining company.

“The Rights Plan is being adopted to preserve the integrity of our previously announced strategic alternatives review process and is in the best interests of all Bitfarms’ shareholders.”

Bitfarms

Riot, which currently holds 47,830,440 common shares, representing 11.62% of Bitfarms’ shares, has recently made a proposal to acquire all of Bitfarms’ issued and outstanding common shares for 0 million and has announced its intention to requisition a special meeting of shareholders to circumvent the review process.

In response, Bitfarms’ special committee determined that Bitfarms’ offer “significantly undervalues the company and its growth prospects.” The Toronto-headquartered firm added that although the special committee welcomed Riot’s interest in the company, Riot declined to participate in the strategic alternatives review process.

“[…] [Riot] instead has continued to acquire common shares of the company in the open market, thereby acquiring an additional 8.01% of the company’s common shares since April 22, 2024, in an attempt to undermine the integrity of the process and thwart the interest of third parties.”

Bitfarms

The Rights Plan sets a threshold of 15% share accumulation before triggering, designed to prevent any immediate threat to the strategic review process. Starting Jun. 20, one right will be issued per common share, becoming exercisable if any person, along with certain related persons, acquires 15% or more of the outstanding common shares before Sep. 10, or 20% thereafter, without following the plan’s rules.

The Rights Plan needs to be ratified by shareholders within six months and must be approved by the Toronto Stock Exchange, which might also delay acceptance until the relevant securities commission is satisfied.

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Bitcoin

Bitcoin miner Riot Platforms acquires 12% stake in Bitfarms

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Colorado-headquartered crypto mining company Riot Platforms has acquired ownership of a 12% stake in rival Bitfarms despite shorting pressure from Kerrisdale Capital.

Bitcoin mining company Riot Platforms said in a press release on Jun. 5 it acquired 1,460,278 common shares of Bitfarms, becoming the beneficial owner of approximately 12%. The company said the latest purchase, at .45 per share, cost Riot over .5 million in total.

Following the acquisition, Riot stated its intention to call a special meeting of Bitfarms’ shareholders. At this meeting, Riot plans to nominate “several well-qualified and independent directors” to the Bitfarms board, citing “serious concerns regarding the board’s track record of poor corporate governance.”

This move comes amid shorting pressure from Kerrisdale Capital, which recently disclosed a short position in Riot, citing issues with Riot’s equipment sourced from China and operational concerns, and causing Riot’s shares to drop by as much as 9% to .84. However, Riot’s share price rebounded to .65 following the announcement of its additional Bitfarms share purchase, according to Google Finance data.

RIOT share price in USD | Source: Google

In late May, Riot announced a 0 million acquisition bid for Bitfarms, alleging that Bitfarms’ founders weren’t acting in the best interests of all shareholders. Riot claims its proposal, initially submitted privately in late April, was rejected by the Bitfarms board without substantive engagement.

Bitfarms responded by stating that Riot’s offer “significantly undervalues” its growth prospects. The company added that a special committee had requested “customary confidentiality and non-solicitation protections” to which Riot didn’t respond.

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