Bitcoin miner Riot launches new plan for $500 million stock offering, analysts optimistic about stock price with a 45% upside potential

Amid the ongoing rise in Bitcoin mining difficulty and a decline in production, US-listed Bitcoin miner Riot Platforms (NASDAQ: RIOT) recently announced the launch of a new $500 million stock issuance plan to strengthen liquidity and support future expansion needs. At the time of the announcement, the company also disclosed operational data showing a year-over-year decrease in Bitcoin BTC production for November. Riot mined a total of 428 Bitcoins in November last year, down approximately 14% from the same period last year. Riot stated that due to network and power resource constraints, this measure is a strategic reduction. Several analysts are optimistic about Riot’s future stock performance, with JPMorgan analysts even projecting up to 45% upside potential. This is purely market observation and not investment advice.

Riot Platforms Sells $500 Million Common Shares at Current Market Price

This week, Riot Platforms filed documents with the U.S. Securities and Exchange Commission (SEC), indicating that it has signed a final sale agreement with underwriters to sell up to $500 million worth of common stock through the Nasdaq Capital Market via an At-The-Market Program ( (ATM). ATM means the company can sell shares in tranches at current market prices rather than issuing all at once, thereby reducing immediate impact on the stock price.

The company noted that this new plan replaces its previous ATM program established in August 2024, which was recently terminated. During the previous program, Riot sold approximately $600 million worth of stock to support operations and capital expenditures. Under the new agreement, Riot will retain significant autonomy over the timing and amount of stock issuance to adapt to market conditions.

Riot stated that the funds raised will mainly be used for capital expenditures, potential strategic acquisitions, and investments in existing and future data centers and Bitcoin mining infrastructure, as well as for general corporate purposes and working capital. The company also does not rule out using part of the funds for share buybacks to enhance financial flexibility.

This financing activity, combined with the company’s latest monthly operational results, signals mixed prospects. Riot mined a total of 428 Bitcoins in November, down about 14% from the same period last year. Riot explained that the decline in production was mainly due to the overall increase in Bitcoin network difficulty and a planned reduction in mining activity aligned with its power strategy.

Analysts are optimistic about Riot’s stock, with JPMorgan analysts projecting up to 45% upside potential

As of the end of November, Riot held a total of 19,368 Bitcoins, a 70% increase year-over-year, but only a slight increase of 4 Bitcoins from October, indicating the company continued to sell most of its monthly production to support cash flow. In November, Riot sold 383 Bitcoins, generating a net profit of about $37 million, lower than the 400 Bitcoins sold in October with a net profit of $46 million. The average selling price dropped from $114,970 in October to $96,560 in November, reflecting a correction in Bitcoin prices at the end of autumn.

In the market, as of press time, Bitcoin price hovered around $88,000, with slight daily gains, but overall retail investor sentiment remains cautious. Riot’s stock price dipped nearly 1% in Wednesday’s trading following the announcement of the financing news. However, looking at the full year, the stock has still risen about 24%, with a 12-month cumulative increase of 21%.

Multiple institutional analysts remain positive about Riot’s long-term prospects, primarily due to its power and infrastructure layout. JPMorgan recently pointed out that, with Riot expected to complete a 600 MW hosting agreement at the Coscocana mine in Texas before 2026, its profitability and asset value are likely to further improve, with an estimated 45% upside potential for the stock.

Currently, Riot controls approximately 1.7 GW of power capacity across two large mines in Texas. Analysts believe that, as power resources become a key factor in Bitcoin mining competition, high-quality, scalable infrastructure assets like these are quite scarce in the industry and serve as a crucial foundation for Riot’s long-term growth.

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