It's been a very volatile ride over the past few months for investors in cryptocurrencies and crypto-related stocks. Whether we're talking about centralized exchange operators, companies in the ETF and application sub-sectors, or former crypto mining companies like Hut 8 (HUT) and Riot Platforms (RIOT), which have since largely shifted toward becoming more well-rounded compute providers for cloud and data center giants, there are plenty of publicly traded angles for investors intrigued by the crypto sector to consider when thinking about how to gain exposure to this key trend.
As many investors know, the Trump administration has become a big proponent of cryptocurrencies and regulations for this sector more broadly. Here's what recent headlines around a proposed bill (and President Trump's urging of this bill to be passed) could mean for these key crypto players moving forward.
What Will This Bill Mean for HUT and RIOT Stock?
I'm going to take an interesting angle on the recent news that Trump is pushing for the passage of a key market-structure bill, which could improve digital asset legislation and allow for yields to be paid on stablecoins and other assets. I don't think it's going to really matter much, at all, for the likes of Hut8 and Riot Platforms, given these companies' underlying transformations underway.
Both companies are looking to move from energy-intensive Bitcoin (BTCUSD) mining operations to companies leasing out their compute capacity to data center operators and others in the AI sector, which will pay a premium for said services right now. Hut's fundamentals, shown above, indicate that this shift is going to take some serious time (and capital) to eventually turn profitable. Indeed, a -96% profit margin is about as bad as it gets, with investors in the company clearly placing their faith in Hut's management team to do the right thing and push for efficiency as soon as possible. At a price/sales ratio of more than 22 times, this is a stock that's very dearly priced, and one that's seen the corresponding level of volatility of late as a result.
That said, looking at Riot's fundamentals (above), there's a bit of a different story going on here. Riot has continued to mine Bitcoin over the past year, actually producing more than 5,600 tokens in 2025. That's been a boon for its balance sheet (despite the recent plunge in Bitcoin prices) and allowed the company to maintain a positive profit margin of nearly 30%. That's why Riot's management team has talked about transitioning its operations over time—taking a more staggered approach than its peers.
So, it's a tale of two companies that are moving in similar directions but taking different routes. Personally, I think Riot's relative fundamental strength speaks to its long-term potential upside, though I'm still on the fence regarding both companies as ways to play a potential boom in the crypto sector from Trump's proposed crypto regulation passing.
What Do Wall Street Analysts Think of Both Companies?
Let's take a look at Riot first.
With a consensus price target of more than $26 per share, analysts are pricing in more than 70% upside in this name. That's impressive, but also upside, which makes sense to me, given the quality of the company's underlying fundamentals relative to its peers.
Looking at Hut 8's consensus price target, it's a bit of a different story. While both stocks saw similar declines today due to the same sector-wide pressure (despite the aforementioned commentary out of the Trump administration), this crypto miner's upside is currently sitting at less than 40%, according to a consensus price target of $71.19 per share.
Thus, it does appear to be the case that Wall Street experts are siding with my view that Riot would be the preferential option of the two in this sector right now.
Until I see anything material change, I'm going to hold this perspective for the time being.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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