Riot stock price retreated by over 4.75% in the extended hours after the Bitcoin mining company published its financial results. It dived to $15.65, down sharply from last year’s high of $24, and the diamond reversal pattern points to a dive in the coming days.
Riot Platforms Pivoting to AI Faces Risks
The RIOT share price has retreated sharply after publishing its annual results on Monday. These results showed that its revenue rose to over $647 million from $376 million in the previous year. It mined 5,686 BTC tokens last year, higher than the 4,828 in 2024. This increase happened even after the halving event happened in 2024.
Riot Platforms noted that the average cost to mine Bitcoin continued rising as the mining difficulty soared. The cost jumped to $49,645, much higher than $32,216 in the previous year.
Riot Platforms noted that its EBITDA profit moved from over $297 million to a loss of $306 million.
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Still, like other Bitcoin mining companies, Riot is working to pivot its business into the growing artificial intelligence industry. Just recently, Starboard Value, a top activist hedge fund, added pressure on the company to accelerate its transition into the AI industry.
The company has already bought a 200-acre piece of land. It also announced a major deal with Advanced Micro Devices (AMD) that has already started generating revenue for Riot. In a statement, the CEO said:
“We have successfully commenced operations on the first phase of the lease with AMD, generating revenue for Riot, as of January 2026. This partnership validates our unique ability to rapidly deliver power capacity at scale for the world’s leading technology companies.”
Still, there are concerns about the AI industry. The first main concern is that the industry has gotten highly competitive, with most Bitcoin mining companies entering the industry. This includes companies like IREN, Terawulf, Bitfarms, and Core Scientific.
As such, there is a likelihood that the firm may not get the large contracts that its peers, like IREN, CoreWeave, and Nebius, have received. For example, none of these companies have received a major multi-billion dollar contract in the past few months. IREN received a $9.7 billion deal last year, while Nebius entered a $19 billion deal with Microsoft.
The other risk is that the company will need to raise capital to fund its data centers, which is risky for shareholders.
Riot Stock Price Technical Analysis
The daily chart shows that the RIOT share price retreated sharply after releasing its earnings. These earnings came after the stock formed a diamond reversal pattern, a risky situation. It has retreated to the 50% Fibonacci Retracement level.
The stock has also moved below the 100-day Exponential Moving Average (EMA). Also, the Relative Strength Index (RSI) has pointed downwards. Therefore, the most likely Riot Platforms stock price forecast is bearish, with the next key target being at $11.85, its lowest level this year.
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