7 Most Undervalued Blockchain Stocks To Buy According To Analysts

2. Riot Platforms Inc. (NASDAQ:RIOT)

Forward P/E: 20.88

Earnings Growth: 203.60%

Analysts’ Upside Potential: 129.30%

Number of Hedge Fund Holders: 12

Riot Platforms Inc. (NASDAQ:RIOT) ranks second on our list of the most undervalued blockchain stocks to buy according to analysts. Primarily focused on Bitcoin and general blockchain technology, Riot is one of the most prominent Bitcoin mining companies. It supports the Bitcoin blockchain through large-scale mining operations in the United States. The company also has electrical switchgear engineering and fabrication operations in the US state of Colorado.

The company is actively developing its Corsicana Facility, which will ultimately have a total capacity of 1 gigawatt (1,000 MW). In September, Riot Platforms Inc. (NASDAQ:RIOT) completed the third building of Phase 1, increasing the facility’s power capacity to 300 MW.

Riot Platforms has shown impressive growth in its Bitcoin mining operations, recently mining 412 BTC in September 2024, which is a 28% increase from August. This brings the company’s total Bitcoin holdings to 10,427 BTC, positioning it as one of the largest holders among public mining companies. The rise in production was driven by an increase in the average operating hash rate across all of the company’s facilities, showcasing Riot Platforms Inc.’s (NASDAQ:RIOT) commitment to expanding its mining capabilities and optimizing its infrastructure.

In the second quarter of 2024, Riot Platforms Inc. (NASDAQ:RIOT) reported $55.8 million in Bitcoin mining revenue, reflecting a 12% increase compared to the same period last year. The company also achieved an engineering gross profit of $1.4 million, up from $1.1 million in Q2 2023. These financial results indicate that Riot is successfully expanding its mining operations to enhance its profitability.

In July, Riot Platforms Inc. (NASDAQ:RIOT) made a strategic move by acquiring Block Mining, a privately held Bitcoin miner based in Kentucky. This acquisition adds 60 megawatts of operational capacity, with the potential to expand to 110 megawatts this year. This acquisition allows the company to diversify its operations into new energy markets while also enhancing its growth trajectory in the Bitcoin mining sector.

With its strategic expansions and strong performance, Riot Platforms Inc. (NASDAQ:RIOT) has positioned itself as an attractive investment opportunity. RIOT is trading at over 20 times its forward earnings. As of the second quarter of 2024, the stock is held by 12 hedge funds. Analysts are also bullish on RIOT. The 12-month median price target for the stock set by analysts indicates a potential upside of 129.30% from the current stock price.