Shares of Bitcoin miner Riot Blockchain (RIOT 11.60%) traded roughly 11.5% larger as of two:05 p.m. ET right now for no apparent cause, though the broader crypto market is essentially within the inexperienced right now.
The value of Bitcoin traded roughly 1.3% larger as of this writing, and contemplating Riot is within the enterprise of mining Bitcoin, the inventory undoubtedly trades with a superb quantity of correlation to the world’s largest cryptocurrency.
Earlier this week, Riot supplied an replace on its operations and mentioned that it had mined 374 Bitcoins in August, which is a decline of 15% from August of 2021. Nonetheless, that is up from July when Riot solely mined 318 Bitcoin tokens.
Riot and different Bitcoin miners have been hit arduous amid the crypto winter, with Riot’s inventory down about 68%. The excellent news is Riot would not have an excessive amount of debt and about $270 million of money and money equivalents after the second quarter. But it surely’s arduous to know when the crypto winter will finish and the worth of Bitcoin will rebound.
Riot is definitely not dangerous for a Bitcoin-mining firm and will see its inventory bounce as soon as the remainder of the crypto market recovers, which I do suppose will finally occur.
However total, I am not an enormous fan of Bitcoin-mining firms as a result of they keep a variety of prices when the worth of Bitcoin goes up or down. Riot has additionally diluted shareholders on quite a few events. I might want to only guess on Bitcoin as a substitute.