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Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

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Thematic (Sector/Industry)

<ul><li>A digital asset treasury (DAT) company is a publicly traded firm that holds a significant amount of cryptocurrencies and other digital assets on its balance sheet.</li><li>Unlike traditional businesses that generate revenue from selling products or services, a DAT company’s primary purpose is to provide investors with exposure to the crypto market through a more familiar, regulated vehicle: publicly traded equity.</li><li>Over the course of 2025, more than 150 publicly listed companies in the US have announced plans to raise nearly $100 billion to acquire digital assets for their treasuries. </li></ul>

A digital asset treasury (DAT) company is a publicly traded firm that holds a significant amount of cryptocurrencies and other digital assets on its balance sheet.Unlike traditional businesses that generate revenue from selling products or services, a DAT company’s primary purpose is to provide investors with exposure to the crypto market through a more familiar, regulated vehicle: publicly traded equity.Over the course of 2025, more than 150 publicly listed companies in the US have announced plans to raise nearly $100 billion to acquire digital assets for their treasuries. 

Tech Talk: Digital Asset Treasuries - September 10, 2025

Managing Partner, VRS (Valuation & Research Specialists)

VRS (Valuation & Research Specialists)

Managing Partner

Valuation & Research Specialists (VRS) is a boutique financial advisor with more than 17 years of experience in Corporate Valuation and Finance, and a diversified client base including some of the largest Companies in Greece.

Since 2002, VRS has completed more than 200 engagements in the areas of business valuation and financial analysis for more than 100 clients in a wide range of industries.

VRS has been honored to work with small and large private and publicly traded companies in Europe and overseas.

Boutique Financial Advisor

Equity Bottom-Up

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<h2>RIOT BLOCKCHAIN, INC.</h2>
<h3>Equity Research Flash Note</h3>
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<h3>Corporate &amp; Investment Highlights</h3>
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<li>RiotBlockchainInc.(NASDAQ:RIOT)isoneoftheleadingNasdaqpubliclytradedcryptocurrencyminingcom- panies operating in North America. The company has made the strategic decision to focus its efforts on mining bitcoin by deploying special cryptocurrency mining computers (known in the industry as “miners”) designed to mine for bitcoin, generating substantially all its revenue through the cryptocurrency mining operations. It is noted that company’s business is heavily dependent on the spot price of bitcoin.</li>
<li>Totalminingrevenueincreasedby76.7%onayear-over-yearbasisto$12.1millionin2020,ascomparedto$6.7 million in 2019, while total mining costs increased by only 3% on a year-over-year basis to $6.3 million in 2020, as compared to $6.1 million in 2019. Similar upward trend showed in all profitability indicators in 2020 (EBIT, EBT, EATAM), which are expected to reach positive values in 2021. Overall, considering the rapid increase in the price of bitcoin, the main cryptocurrency that the company mines, as well as the increase in the company’s hash rate (total computational power being used to process transactions and mine new coins), a major increase in company- ny's profitability is expected for 2021. In these grounds, the estimated of revenues for 2021 ranges around $205mn while for the first nine months of 2021 were $122mn.</li>
<li>EATAMfor2020was-$12.7million,or-$0.30pershare,comparedto-$20.03million,or-$1.02persharein 2019. We expect for 2021 EATAM to increase to a record high $35mn mainly due to the increasing market prices for bitcoin, taking also into account that for the first half of 2021 EATAM stood at $26mn. For 2022, the company has stated that in order to stay competitive in its evolving industry it will continue to expand its mining capacity.</li>
<li>CapitalExpenditures(Capex)amountedto$41mnin2020,comparedto$6mnin2019.Duringthefirsthalfof 2021 Riot surpassed its previous year Capex and has already spent $92mn for that purpose. According to our es- timates the Capex for 2021 will range around $200mn, in line with company’s strategic plan for continuing to ex- pand its existing miner fleet by purchasing the latest generation of miners, as well as innovating to develop and implement new technologies and mining solutions.</li>
<li>Riot’sEBITDAfor2020improvedto-$8mnfrom-$20mnin2019.Duringthefirstninemonthsof2021EBITDA stood at $36mn, compared to -$14mn during the same period of 2020, resulting mainly from the significant in- crease in company’s revenues, since the number of bitcoins owned on the Company’s balance sheet more than doubled, ending with 1,078 bitcoins as of December 31, 2020, compared to 514 as of December 31, 2019. Based on these considerations, we expect EBITDA to range around $62mn at the 2021 year-end.</li>
<li>Thecompanyhasnotuseddebtfinancingin2020and2019.Also, based on the results published for the first half of 2021, the company has not any long-term debt outstanding. In this vein, we expect that the company will not make use of debt till the end of 2021. On the other hand, the company makes extensive use of equity financing, with total stockholder’s equity significantly increased to $277mn in 2020 compared to $26.2mn balance as of December 31, 2019.</li>
<li>During 2020, the company also achieved a series of important milestones. More specifically, the company re- located 100% of its mining operations from Oklahoma City, OK to Coinmint LLC’s Massena, New York colocation facility to decrease costs of production. Also, the company invested heavily in cryptocurrency mining equipment (33,646 Bitmain S19, S19 Pro and S19j Pro Antminers) which, when fully installed by the fourth quarter of 2021, is expected to achieve an estimated aggregate bitcoin mining hash rate capacity of 4.0 EH/s (ExaHash). Additional- ly, in 2020 the company deployed hash rate capacity to 566 PH/s (PetaHash), a 460% increase from 101 PH/s as of December 31, 2019.</li>
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RIOT BLOCKCHAIN, INC.
Equity Research Flash Note




Corporate &amp; Investment Highlights

RiotBlockchainInc.(NASDAQ:RIOT)isoneoftheleadingNasdaqpubliclytradedcryptocurrencyminingcom- panies operating in North America. The company has made the strategic decision to focus its efforts on mining bitcoin by deploying special cryptocurrency mining computers (known in the industry as “miners”) designed to mine for bitcoin, generating substantially all its revenue through the cryptocurrency mining operations. It is noted that company’s business is heavily dependent on the spot price of bitcoin.
Totalminingrevenueincreasedby76.7%onayear-over-yearbasisto$12.1millionin2020,ascomparedto$6.7 million in 2019, while total mining costs increased by only 3% on a year-over-year basis to $6.3 million in 2020, as compared to $6.1 million in 2019. Similar upward trend showed in all profitability indicators in 2020 (EBIT, EBT, EATAM), which are expected to reach positive values in 2021. Overall, considering the rapid increase in the price of bitcoin, the main cryptocurrency that the company mines, as well as the increase in the company’s hash rate (total computational power being used to process transactions and mine new coins), a major increase in company- ny's profitability is expected for 2021. In these grounds, the estimated of revenues for 2021 ranges around $205mn while for the first nine months of 2021 were $122mn.
EATAMfor2020was-$12.7million,or-$0.30pershare,comparedto-$20.03million,or-$1.02persharein 2019. We expect for 2021 EATAM to increase to a record high $35mn mainly due to the increasing market prices for bitcoin, taking also into account that for the first half of 2021 EATAM stood at $26mn. For 2022, the company has stated that in order to stay competitive in its evolving industry it will continue to expand its mining capacity.
CapitalExpenditures(Capex)amountedto$41mnin2020,comparedto$6mnin2019.Duringthefirsthalfof 2021 Riot surpassed its previous year Capex and has already spent $92mn for that purpose. According to our es- timates the Capex for 2021 will range around $200mn, in line with company’s strategic plan for continuing to ex- pand its existing miner fleet by purchasing the latest generation of miners, as well as innovating to develop and implement new technologies and mining solutions.
Riot’sEBITDAfor2020improvedto-$8mnfrom-$20mnin2019.Duringthefirstninemonthsof2021EBITDA stood at $36mn, compared to -$14mn during the same period of 2020, resulting mainly from the significant in- crease in company’s revenues, since the number of bitcoins owned on the Company’s balance sheet more than doubled, ending with 1,078 bitcoins as of December 31, 2020, compared to 514 as of December 31, 2019. Based on these considerations, we expect EBITDA to range around $62mn at the 2021 year-end.
Thecompanyhasnotuseddebtfinancingin2020and2019.Also, based on the results published for the first half of 2021, the company has not any long-term debt outstanding. In this vein, we expect that the company will not make use of debt till the end of 2021. On the other hand, the company makes extensive use of equity financing, with total stockholder’s equity significantly increased to $277mn in 2020 compared to $26.2mn balance as of December 31, 2019.
During 2020, the company also achieved a series of important milestones. More specifically, the company re- located 100% of its mining operations from Oklahoma City, OK to Coinmint LLC’s Massena, New York colocation facility to decrease costs of production. Also, the company invested heavily in cryptocurrency mining equipment (33,646 Bitmain S19, S19 Pro and S19j Pro Antminers) which, when fully installed by the fourth quarter of 2021, is expected to achieve an estimated aggregate bitcoin mining hash rate capacity of 4.0 EH/s (ExaHash). Additional- ly, in 2020 the company deployed hash rate capacity to 566 PH/s (PetaHash), a 460% increase from 101 PH/s as of December 31, 2019.










RIOT BLOCKCHAIN, INC: Equity Research Flash Note

United States

Riot Blockchain Inc operates as a digital currency company. The company focuses on buying cryptocurrency and blockchain businesses, as well as supports blockchain technology companies. Riot Blockchain serves customers worldiwde.

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Riot Blockchain (RIOT US)

Tech Talk: Digital Asset Treasuries - September 10, 2025

A digital asset treasury (DAT) company is a publicly traded firm that holds a significant amount of cryptocurrencies and other digital assets on...

Water Tower Research

RIOT BLOCKCHAIN, INC: Equity Research Flash Note

RIOT BLOCKCHAIN, INC. Equity Research Flash Note Corporate & Investment...

VRS (Valuation & Research Specialists)

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