Stifel analyst Bill Papanastasiou began coverage of Riot Platforms (RIOT.US) with a speculative buy rating on Thursday, stating that the market has not fully recognized its clear trajectory of becoming the most important leader in the field of bitcoin mining.

In addition to its relatively large mining capabilities, the analyst also noted that Riot is one of the companies with the lowest marginal mining costs among public companies.

He said: '(1) Low-cost electricity, (2) scale and (3) leading mining efficiency are the key drivers of unit economics.'

Papanastasiou added that Riot has a net cash of about $1.2 billion, "providing flexibility for strategic growth opportunities."

Overall, Wall Street analysts rate Riot as a 'strong buy' with an average target price of $17.50, which is 63% higher than the current level.

As of Thursday's close, Riot fell 5.21% to $10.73 as a broader stock market sell-off weakened investor confidence in risk assets, including cryptocurrencies.