RIOT

Riot Platforms is a Bitcoin-mining company increasingly repositioning toward AI/HPC data-center hosting. The top line is growing fast — revenue rose 71.9% to $647M — but the business is deeply and increasingly unprofitable. Net income was -$663M (a -102.4% net margin), operating income -$622M (operating margin -96.1%), and the company posted a -23.2% ROE with -$1.35B of accumulated deficit. This is not a stumble: the loss swung sharply negative versus FY2024's $109M profit, reflecting Bitcoin-price and difficulty volatility plus a heavy depreciation load (D&A up 66.2% to $343M) on its mining and data-center fleet.

The cash dynamics are the most worrying part. Operating cash flow was -$573M, a severe burn against just $234M of cash on hand (down 16.0%). The current portion of debt exploded to $254M and current liabilities jumped 192.9% to $470M, now exceeding current assets of $449M — a tightening liquidity picture. Riot has been plugging the gap by issuing stock (shares up 8.3%), diluting holders. The balance sheet still shows $2.86B of equity against modest $1.08B liabilities (0.38x), but much of that equity is volatile crypto-linked assets, not durable earning power.