Riot Platforms Inc. (RIOT)
NASDAQ
Blockchain
Mining
Investment Thesis
Riot is the lowest-cost public Bitcoin miner through a structural advantage: power credits. Their Rockdale, Texas facility earns curtailment payments from ERCOT in exchange for cutting power during grid stress — effectively mining Bitcoin at near-zero energy cost during those windows.
Key Drivers
- Power Credits: Up to $40M+ annually in ERCOT curtailment credits — a unique structural edge.
- Whinstone Campus: 1+ GW of power capacity — platform for HPC expansion.
- Clean Energy Mix: Lower carbon footprint = ESG-friendly institutional access.
Risk Factors
- Texas Grid Risk: Extreme weather events can suspend operations.
- BTC Price Dependency: All mining economics depend on BTC staying above cost basis.