Riot Platforms favored over Hut 8 as both pivot from Bitcoin mining to AI data centers

The Motley Fool··Read original
2▲1 ▼1Impact / 5
Summary · why it matters

Riot Platforms is the better stock pick for 2026 over Hut 8, according to a Motley Fool analysis, as both companies transition from Bitcoin mining to AI and high-performance computing data centers. Riot trades at a forward P/E of 20.9x and a price-to-sales ratio of 11.7x, compared to Hut 8's 84.8x and 36.7x, respectively, and holds over $900 million in Bitcoin versus Hut 8's roughly $675 million. Hut 8 reported fiscal 2025 revenue of nearly $235.1 million, up 45%, but swung to a net loss of approximately $226.1 million, while Riot posted revenue of nearly $647.4 million, up nearly 72%, with a net loss of roughly $663.2 million. Both companies' losses were largely driven by mark-to-market declines in Bitcoin holdings, and each faces risks from power grid constraints and execution challenges in their AI pivots. Riot's cheaper valuation and larger Bitcoin reserves make it the preferred choice, though analysts' long-term revenue projections remain highly speculative.

Impact on assets 6

Digital Finance & Tokenization± Mixed · 4 stocks
Hut 8 Corp. Common Stock
HUT
▼ NegativeCapitalrelevance

Hut 8 is deemed the worse pick due to higher valuation multiples and a net loss swing, making it less attractive to investors.

Riot Platforms, Inc.
RIOT
▲ PositiveCapitalrelevance

Riot is favored over Hut 8 due to cheaper valuation and larger Bitcoin reserves, according to the analysis.

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