Riot Blockchain share „crashes“ after rapid climb

Riot Blockchain share „crashes“ after rapid climb

The mining company’s share price loses 20%, but still posts a whopping gain in February.

Shares in crypto miner Riot Blockchain (RIOT) crashed yesterday (Thursday), following massive gains recently due to an increase in its own capacity (hashrate).

Accordingly, RIOT shares lost 20.4% yesterday, bringing the price down to 62.03 US dollars at the time of going to press. Nevertheless, The News Spy mining company currently has a market value of US$4.2 billion, making it one of the largest companies in the industry.

Yesterday’s crash follows a rapid climb that saw the share price more than double in value between 10 and 17 February to just under US$78.

Since the beginning of February, the mining share has gained a whopping 202%

The climb began shortly after Riot announced that it would expand its own hashrate, i.e. the computing power available for crypto mining, to 1.06 exahashes per second (EH/s) by deploying 2,002 new S19 Pro Antminer devices.

CEO Jason Les commented on 11 February in this regard:

„While we are proud of this, we see this expansion as just one of many steps in our growth plan. Riot will continue to purchase state-of-the-art mining equipment from Bitmain and is fully on track to triple our capacity by the fourth quarter of 2021.“

A few weeks ago, the company had already announced plans to expand its own hashrate to 3.8 exahash per second by the end of 2021.

The overall rise in RIOT’s share price is actually much stronger, as when Cointelegraph reported on the mining company in November 2020, the stock was still at US$6. Ambitions were already high at the time, however, as the reporting was prompted by the fact that Hubert Marleau, a former managing director of the Toronto Stock Exchange, had been brought onto Riot’s board.