Riot Platforms shares moved higher ahead of its earnings release, rising more than 1.2% on Monday as Bitcoin and other altcoins bounced. The stock climbed to $16.50 from an intraday low of $15.45. Even with geopolitical risks still in view, Riot remains about 40% above its February low, giving the company a market capitalization of more than $6.14 billion.
Revenue expectations remain strong before results
Wall Street expects the upcoming report to show continued top-line growth. Analysts are looking for quarterly revenue of about $158 million, which would represent a 10% increase. Full-year revenue is expected at $658 million, up 75% from a year earlier.
The company’s most recent reported quarter showed a sharp jump in sales. Third-quarter revenue rose to $180 million from $84 million in the same period a year earlier. Mining revenue increased from $67 million to $160 million, while engineering revenue improved from $12 million to $19 million. That mix shows mining still driving most of the business.
Mining pressure pushes Riot toward data center expansion
Riot is dealing with the same strain facing other Bitcoin miners as BTC remains in a technical bear market after falling more than 40% from its all-time high. In response, the company has been expanding into data colocation, a segment benefiting from rising corporate capital spending.
It recently bought 200 acres in Texas to expand its mining footprint. Riot also signed a data center leasing agreement with AMD, starting with 25 MW of IT capacity. At the same time, activist investor Starboard Value has been pressing the company to speed up its shift toward becoming a data center operator and to ramp deployments that could appeal more to hyperscalers. The article notes that IREN has already signed deals worth over $10 billion, while CoreWeave has a backlog above $50 billion.
Diamond reversal pattern puts $15 in focus
On the daily chart, Riot has rebounded from its year-to-date low of $11.85 in February to current levels. The stock is trading between the 50% and 38.2% Fibonacci retracement levels and has moved slightly above the 100-day exponential moving average. Still, the chart has formed a diamond reversal pattern, a setup often associated with a bearish break.
Based on that reading, the stock may face downside pressure after earnings. If a breakdown develops, the next key level to watch is the psychological support at $15.