Riot Platforms (RIOT): Evaluating Valuation as Crypto Selloff Impacts Bitcoin Mining Stocks

Riot Platforms (RIOT) shares recently took a hit, moving in line with a broad selloff in crypto-related stocks. This pullback comes as Bitcoin and Ethereum both saw sharp price declines, which put extra pressure on mining companies.

See our latest analysis for Riot Platforms.

Despite some turbulence driven by recent crypto selloffs, Riot Platforms has continued making headlines with its expanding mining operations and an upcoming Q3 2025 earnings call set for October 30. While short-term share price returns have swung sharply, up over 44% in the past 90 days, the momentum builds on a remarkable long-term trend. Total shareholder return over the last year exceeds 100%, and five-year total returns stand out at more than 400%.

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With Riot trading just below analyst price targets after such strong performance, the key question now is whether recent dips leave the stock undervalued or if the market has already priced in future growth prospects.

Most Popular Narrative: 4.5% Undervalued

With the most closely-watched narrative pricing Riot Platforms at $20.97 per share, the fair value sits just slightly above the latest close. This narrows the gap and reignites debate on whether the market is catching up to the company’s ambitious expansion story.

The company’s expansion of vertically integrated mining operations, with ongoing deployment of new, more efficient hardware and a continued focus on operational efficiency, supports increased hash rate and lower unit costs. This enhances Bitcoin production and potential gross profit even as mining difficulty rises.

Read the complete narrative.

Curious what explosive assumptions drive this optimistic fair value? One forecast in the narrative expects future profit margins and forward earnings multiples that rival top tech leaders. Discover which underlying growth bets power this bold valuation projection.

Result: Fair Value of $20.97 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, volatility in Bitcoin prices and challenges in monetizing new data center assets could quickly dampen the current wave of optimism regarding Riot’s outlook.

Find out about the key risks to this Riot Platforms narrative.

Another View: What Do Market Multiples Indicate?

Looking at how the market values Riot Platforms using its price-to-sales ratio gives a very different perspective. Riot trades at 13.7x sales, much higher than both peers (8.3x) and the software industry average (5x). The fair ratio, based on regression, is just 6.1x. This gap suggests that investors are paying a significant premium, which could mean higher risk if optimism fades. So, which story will the market follow — expectations or fundamentals?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Riot Platforms Narrative

Feel free to dig into the numbers yourself and shape your own view. Creating a personalized Riot Platforms narrative takes less than three minutes. Do it your way

A great starting point for your Riot Platforms research is our analysis highlighting 1 key reward and 5 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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