Riot Platforms, Cleveland-Cliffs, Trex: Navigating Market Volatility with Strategic Moves

As the market continues to grapple with volatility, companies like Riot Platforms Inc. (RIOT), Cleveland-Cliffs Inc. (CLF), and Trex Company (TREX) have made strategic moves to mitigate risks and capitalize on opportunities. Let's dive into their recent earnings reports and analyze how these decisions have impacted their financial performance.



Riot Platforms Inc. (RIOT): Bitcoin Treasury Policy Pays Off

Riot Platforms reported record revenue of $376.7 million and net income of $109.4 million in 2024, driven by a $132 million increase in Bitcoin mining revenue. The company's strategic decision to retain Bitcoin production rather than selling has contributed to its Bitcoin treasury, which held 17,722 unencumbered Bitcoin, equating to approximately $1.65 billion based on a market price of $93,354 per Bitcoin on Dec. 31, 2024. This policy allowed RIOT to generate record adjusted EBITDA of $463.2 million in 2024, demonstrating the value of their approach.



Cleveland-Cliffs Inc. (CLF): Lowering Steelmaking Unit Costs

Cleveland-Cliffs reported a loss of 68 cents per share in the fourth quarter, missing analyst estimates, and its revenue of $4.33 billion also fell short of expectations. The company attributed its poor performance to the worst steel demand environment since 2010 (excluding COVID), with a decline in domestic automotive production and unsustainably low steel prices due to increased imports. However, Cleveland-Cliffs expects full-year 2025 steel unit cost reductions of approximately $40 per net ton, indicating an effort to improve profitability. The company also anticipates full-year capital expenditures of approximately $700 million, reflecting its commitment to investing in its future.



Trex Company (TREX): Facing Industry Headwinds

Trex is expected to report a decline in revenue of 18% year on year to $160.5 million in the fourth quarter, a reversal from the 1.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.04 per share. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. The composite decking industry appears to be facing a slowdown in growth, with Trex's expected revenue decline indicating a potential softening in demand.



In conclusion, Riot Platforms, Cleveland-Cliffs, and Trex have all made strategic moves to navigate the challenges and opportunities presented by their respective industries. While Riot Platforms' Bitcoin treasury policy has paid off, Cleveland-Cliffs is working to lower steelmaking unit costs, and Trex is facing industry headwinds. By staying informed and adaptable, these companies can better position themselves to weather market volatility and capitalize on new opportunities as they arise.