Riot stock rises ahead of earnings as a risky pattern emerges

Riot stock price rose by over 1.2% on Monday as Bitcoin and other altcoins rose despite the ongoing geopolitical risks. It also rose as traders waited for its financial results.

RIOT stock rose to $16.50 from the intraday low of $15.45. It remains 40% above its lowest level in February, with the market capitalization soaring to over $6.14 billion.

Wall Street analysts expect the upcoming results to show that the Bitcoin (BTC) mining giant did well in the last quarter, with its revenue rising by 10% to $158 million. Its annual revenue is expected to come in at $658 million, up by 75% YoY.

The most recent showed that its revenue jumped to $180 million in the third quarter from $84 million in the same period in 2024. This growth was driven by its mining operations, whose revenue rose from $67 million to $160 million. Its engineering revenue rose to $19 million from $12 million.

Like other Bitcoin mining companies, Riot Platforms is facing major challenges as the coin remains in a technical bear market after falling by over 40% from its all-time high. As a result, it is expanding to the data colocation industry, which is booming as companies boost their capital expenditure.

It recently acquired 200 acres of land in Texas to expand its mining operations. Also, it entered a data center leasing agreement with AMD, a top semiconductor company. Its initial deal is for 25 MW of IT capacity.

Riot Platforms is under pressure from Starboard Value, an activist investor, who believes that it should accelerate its transition into a data center operator. It wants it to accelerate the rollout of its data centers, a move that will make it more attractive to hyperscalers. For example, IREN has already inked deals worth over $10 billion, while CoreWeave has a backlog of over $50 billion.

Riot Platforms stock price technical analysis 

The daily chart shows that the Riot Platforms share price has rebounded from the year-to-date low of $11.85 in February to the current $16.50. 

It remains between the 50% and 38.2% Fibonacci Retracement level. It also moved slightly above the 100-day Exponential Moving Average.

However, the stock has also formed a diamond reversal pattern, which often leads to a bearish breakdown.

Therefore, it will likely have a bearish breakdown after its earnings. If this happens, the next key target to watch will be the psychological level at $15.