Riot shares rose more than 1.2% on Monday as Bitcoin and other altcoins rallied despite ongoing geopolitical risks. It also rose as traders awaited its financial results.
Conclusion
- Riot Platforms shares have surged as the crypto market surged.
- The company will release its financial results on Monday.
- The stock has formed a diamond reversal pattern, indicating a possible reversal.
RIOT shares rose from $15.45 to $16.50 on the day. It remains 40% off its February lows and has a market capitalization of more than $6.14 billion.
Wall Street analysts expect the upcoming results to show that the Bitcoin (BTC) mining giant performed well in the last quarter, with its revenue increasing 10% to $158 million. Its annual revenue is expected to reach $658 million, a 75% year-over-year increase.
The latter showed that its revenue rose to $180 million in the third quarter from $84 million in the same period in 2024. The increase was driven by mining operations, which saw revenue increase from $67 million to $160 million. Its engineering revenue rose from $12 million to $19 million.
Like other Bitcoin mining companies, Riot Platforms is facing serious challenges as the coin remains in a technical bear market after dropping more than 40% from its highs. As a result, it expands into the data colocation industry, which is growing as companies’ capital expenditures increase.
It recently acquired 200 acres of land in Texas to expand its mining operations. It also signed a data center leasing agreement with AMD, a leading semiconductor company. Its initial contract is for 25 MW of IT capacity.
Riot Platforms is under pressure from Starboard Value, an activist investor that believes it needs to accelerate its transition into a data center operator. It wants to accelerate the rollout of its data centers, a move that makes it more attractive to hyperscalers. For example, IREN has already signed more than $10 billion in deals, while CoreWeave has more than $50 billion behind it.
Technical analysis of Riot Platforms stock price
The daily chart shows that Riot Platforms’ stock price has risen from a year low of $11.85 in February to a current high of $16.50.
It remains between 50% and 38.2% of the Fibonacci Retracement level. It also rose slightly above the 100-day exponential moving average.
However, the stock has also produced a diamond reversal pattern that often leads to bearish breakouts.
Therefore, it will likely have a steep decline after its earnings. If this happens, the next main target to watch will be the psychological level at $15.
