We initiated coverage on Riot Blockchain in December 2020, and with some positive recent developments, it's time for us to make some changes to our valuation model for the company.First-quarter earnings marked a record high for the company and we will dig deep to see whether these numbers are as good as they sound.In this article, we will reveal our estimates for average Bitcoin prices and the number of Bitcoin that needs to be mined to sustain Riot's profits.This article was prepared by Lasan Devasirinarayana in collaboration with Dilantha De Silva.We initiated coverage on Riot Blockchain, Inc. (RIOT) in December of 2020 with a strong sell rating, and as expected, our article received a lot of criticism from many Seeking Alpha readers who were bullish on the prospects for RIOT stock at the time. In addition to the company changing its corporate name 4 times in less than 20 years, we also highlighted several other negative developments and unattractive characteristics that could push the stock price down in the long run. After shooting to new highs following our first article, Riot Blockchain stock has now given up all those gains and is down 47% from the price at the publication of our first article. We are long-term-oriented investors, and for this reason, we believe this decline in Riot's market value is not a testament to the accuracy of our initial analysis as we believe the investment thesis surrounding cryptocurrencies ...
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