Riot Blockchain Inc (NASDAQ: RIOT) quietly filed a 10-Q quarterly financial report on Thursday evening without issuing a press release or holding a conference call for investors. The filing provided some helpful insight into Riot's cryptocurrency mining business, according to H.C. Wainwright.
Analyst Kevin Dede reiterated a Buy rating on Riot Blockchain and raised the price target from $9 to $10.
Riot reported first-quarter mining revenue of $900,000, up from $200,000 in the fourth quarter, Dede said in a Friday note. The company said it plans to have 8,000 mining machines operational by the end of May.
Riot’s March quarter revenue fell short of H.C. Wainwright’s estimate, but Dede said the company could make up the difference later in the year.
Riot’s mining-focused business could simply be a stepping stone to the next stage of its long-term plan, he said.
“Riot's long game entails building a digital currency exchange that operates independently but in harmony with household name, web-based, retail-focused brokerage systems, and the operations of a public company in good standing and concomitant oversight brings a cachet that differentiates from other privately held exchanges."
While Riot’s cryptocurrency exchange may still be in the early planning stages, Dede said the company recently inked a deal with Coinsquare and purchased a Commodity Futures Trading Commission-registered brokerage firm. The cryptocurrency exchange could ultimately trump the mining business as Riot’s primary source of revenue, the analyst said.
Riot stock was down 7.36 percent at the time of publication Friday, but shares have soared more than 30 percent in the past five days.
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Photo courtesy of Riot Blockchain.
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|May 2018||H.C. Wainwright||Initiates Coverage On||Buy|
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