Riot Blockchain Shows Technical Strength with 9.57% Gain Amid Growing Investor Interest

Technical Analysis

Riot Blockchain (RIOT) closed at $9.85 on June 6, 2025, showing strong intraday momentum with a 9.57% gain and a trading range between $9.22 and $10.20. The stock is trading above its 50-day moving average ($7.95) but marginally above its 200-day moving average ($9.55), signaling a potential breakout phase. The RSI of 57 suggests moderate bullish momentum without being overbought, while the positive MACD (0.37) confirms upward trend strength. Volume surged to 55.90 million, nearly double its average of 29.00 million, indicating heightened investor interest. The ATR value appears disproportionate likely due to data inconsistency; however, the key price support at $8.70 and stop-loss around $9.47 are pertinent technical reference points. Resistance levels are currently undefined, pointing to potential for further upside.

For the next trading day (June 9), the technical setup supports a high probability of continuation with the price maintaining above key moving averages and an expanding volume profile. Over the next week, barring broader market shocks, the momentum should sustain given no immediate resistance zones and strong relative volume.

Fundamental Analysis

Riot Blockchain’s market cap stands at approximately $3.52 billion. The company remains unprofitable with a trailing twelve months (TTM) EPS of -$1.50 and a negative PE ratio of -6.57, reflecting ongoing investment in infrastructure and operational scale rather than near-term profitability. Riot’s announcement on June 3 citing production of 514 Bitcoin in May 2025 signals operational growth and reinforces its position as a leading bitcoin mining entity. These fundamentals suggest a growth phase dependent on Bitcoin price dynamics and operational efficiency.

The upcoming earnings announcement on July 30, 2025, will be critical to gauge capital expenditures and profitability pathways. Consensus analyst targets uniformly peg a $20 price target, implying significant upside potential (~103% from current levels). The buy-side analyst consensus is unanimous (14 buys, zero holds or sells), reinforcing market confidence despite current earnings deficit.

Intrinsic Value and Long-Term Investment Potential

Intrinsic valuation of Riot Blockchain is challenging due to high volatility in cryptocurrency markets and the firm’s negative earnings. However, the strong production figures, combined with a growing data center footprint and bitcoin mining scale, present intrinsic value aligned with future cash flow growth once operational efficiencies and bitcoin prices stabilize or improve.

Long-term potential hinges on Bitcoin market trends, regulatory landscape, and Riot’s capacity to lower operational costs and scale production. Given current market cap, production metrics, and analyst target multiples, the stock trades at a discount to intrinsic value implied by growth projections and industry positioning.

Overall Evaluation

Riot Blockchain exhibits robust technical momentum supported by increasing volume and positive moving average crossovers. Fundamentally, the company is in growth mode with substantive operational updates but remains unprofitable. The unanimous analyst consensus and target price of $20 reflect significant upside potential against current volatility and risk.

Categorization: Buy candidate. The confluence of technical strength, strong production growth, and bullish analyst sentiment underpin positive near-term and medium-term outlooks. Caution remains warranted due to persistent negative earnings and crypto market cyclicality, suggesting monitoring around earnings and Bitcoin price movements.