Bitcoin miner Riot Platforms broke out of a base Wednesday, after building on Tuesday's jump. The bitcoin mining and digital infrastructure stock is Wednesday's pick for IBD 50 Growth Stocks To Watch as shares look to extend a three-day rally.
Riot stock — along with other bitcoin mining names — rose in sympathy with bitcoin prices, which topped the $114,300 level Wednesday morning. The bitcoin mining stock was discussed on Wednesday's episode of IBD Live.
Riot Platforms is a bitcoin mining and digital infrastructure provider. The company operates bitcoin mining data centers in Texas and Kentucky, and electrical engineering and fabrication facilities in Colorado.
It ranks No. 5 out of 80 stocks in the Financial Services-Specialty group, which holds the 67th spot out of the 197 industry groups that Investor's Business Daily tracks. Green bitcoin miner and IBD 50 stock Iren ranks No. 1. Iren stock popped around 6% Wednesday.
Also starting the session higher was newly listed American Bitcoin, after Tuesday's news that Dominari Holdings revealed a $171 million stake in American Bitcoin.
Crypto miner and platform operator American Bitcoin is backed by Eric Trump and Donald Trump Jr. But American Bitcoin stock reversed lower by Wednesday midday.
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Bitcoin Miner Hits A Buy Point
Riot stock trimmed larger morning gains to around 3.6% Wednesday afternoon, following Tuesday's nearly 13.2% surge in higher-than-average volume.
Riot stock broke out of an early-stage cup base with a 15.34 buy point Wednesday morning in heavy volume. Shares are in the 5% buy zone up to 16.11, according to MarketSurge pattern recognition. It had also offered a handle buy point at 14.46.
Shares tested and bounced off their 10-week moving average for the last several weeks.
Its relative strength line reached a 52-week high, as shown by the blue dot on its weekly chart. The bitcoin mining stock has climbed around 54% so far this year.
Riot Platforms Revenue Sees Huge Growth
On Sept. 3, Riot reported it produced 477 bitcoins in August, down from 484 in July, but higher than the 322 in August 2024. And it's August $51.8 million net bitcoin sales lagged July's $54.8 million.
Riot's bottom line has wavered between losses and profits over the years. In 2024, it reported earnings of 34 cents per share, while full-year 2025 estimates call for a loss of 71 cents per share. Analysts' projections see a 38 cent per share loss in 2026.
Riot reported a surprise second-quarter profit of 58 cents per share on July 31. Its revenue growth accelerated for four straight quarters leading up to a 118% jump in during the second quarter. It produced 1,426 bitcoin during that time vs. 844 a year ago.
Third-quarter forecasts see sales doubling to $169.5 million, then rise between 26% and 38% over the following three quarters.
Heavy Institutional Buying Seen
Its IBD Accumulation/Distribution Rating of A+ indicates heavy institutional buying over the last 13 weeks. And its volume spiked on rising days — particularly in July — as big money managers scoop up shares.
Mutual funds have recently added shares, with 386 funds owning Riot stock in June, up from 368 in March. And its 1.8 up/down volume ratio shows positive demand over the last 50 days.
Management owns 7% of shares, showing conviction in the bitcoin mining stock.
Lastly, Riot stock holds an 88 IBD Composite Rating.
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