8 Most Promising Stocks to Buy According to Wall Street Analysts

3. Riot Platforms Inc. (NASDAQ:RIOT)

Analyst Upside Potential: 120.59%

Number of Hedge Funds: 12

Riot Platforms (NASDAQ:RIOT) is a Bitcoin mining and digital infrastructure company. It operates Bitcoin mining operations in Kentucky and central Texas, along with electrical switchgear engineering and fabrication operations in Denver. The company is divided into two segments: Bitcoin Mining and Engineering. The Bitcoin Mining segment undertakes Bitcoin mining activities, while the Engineering segment manufactures and designs power distribution equipment and custom-engineered electrical products.

The Engineering segment also provides manufacturing, electricity distribution product design, manufacturing, and installation services primarily focused on large-scale governmental and commercial customers. Riot Platform’s (NASDAQ:RIOT) total potential power capacity is two gigawatts. It serves a broad scope of clients across an array of markets, including power generation, data center, water, utility, industrial, and alternative energy.

The company’s primary strategic focus is on developing a leading vertically integrated Bitcoin mining company that stands on three key pillars. These include owning and developing operations of significant scale, being a low-cost producer of Bitcoin, and building a strong balance sheet. Riot Platforms (NASDAQ:RIOT) exhibited strengths in all three pillars in Q2 2024. It successfully boosted its Corsicana facility, increasing the total deployed hash rate quarter-over-quarter by 77% from 12 EH/s to 22 EH/s. This exceeded the company’s quarter-end target of 21 EH/s. Its future growth plans are fully funded due to its continued focus on maintaining a strong balance sheet.

The company announced the acquisition of Block Mining at the close of Q2. Block Mining is a privately held miner that operates in Kentucky. The acquisition adds around 60 megawatts of operating capacity to Riot Platforms (NASDAQ:RIOT), potentially expanding it to 110 megawatts in 2024 by employing its existing infrastructure and a pipeline to build to more than 300 megawatts in total in Kentucky. It adds around 16 EH/s of total hash rate capacity, providing the company with a clearly identified growth path to 2 gigawatts of potentially accessible power, along with 75 EH/s of potential has rate deployed.