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Riot Blockchain reported that the mining revenue had increased by 21% to $6.7 million for the first nine months of 2020.
Riot Blockchain Inc (NASDAQ: RIOT) stock soared approximately 11.71% on Tuesday to close the day trading at $18.41. Meanwhile, they had obliterated part of the gains during Wednesday’s pre-market as they were trading around $18.16, down approximately 1.36%.
Riot Blockchain stock experienced an astronomical rally last year, whereby they are up approximately 1135.57% in the past twelve months according to MarketWatch. Notably, RIOT stocks have rallied over 616% in the past three months, and are now up 86.52% and 16.59% in the past one month and five days respectively.
The sharp uptick in the past few months can largely be attributed to the heightened volatility in the crypto market that has seen Bitcoin rally to new ATH. Moreover, Riot Blockchain core business activity is mining Bitcoin, thus maintaining the blockchain activity. Hereby giving RIOT stock a direct correlation with Bitcoin price.
The company has a reported market valuation of approximately $1.11 billion with 50.93 billion outstanding shares. Apparently, the Riot Blockchain market valuation was around $27 million at the same time last year.
The huge gains that have more than tripled that of Bitcoin in the last one year are mostly due to the company’s diversification. Notably, Riot Blockchain has invested in unique projects including Tesspay and Verady. Tesspay is a blockchain firm that aims in developing a blockchain-based escrow service for wholesale telecom carriers. On the other hand, Verady provides cryptocurrency accounting and audit technology services through VeraNet.
The diversification was a huge plus for the RIOt stock that was significantly bolstered by the Bitcoin and also Ethereum mining. However, the Ethereum ecosystem is migrating from the proof of work to proof of stake thus no more mining involved once the Eth 2.0 is fully implemented.
Riot Blockchain Market Performance that Boosts the Stock
Riot Blockchain reported an increased mining revenue by 21% to $6.7 million for the first nine months of 2020. Notably, the company had reported a figure of $5.6 million in the prior year for the same period.
During its third-quarter earnings report, Riot Blockchain reported increased liquidity to $39.1 million both in cash and digital assets.
Forward, the company anticipates to have a total of 22,640 miners deployed by June 2021.
Notably, the company used S19 Pro miners, which are the latest mining hardware that is capable of competing with increased hash rate and mining difficulty.
Being a major American bitcoin mining company, Riot contributed to over 730 units of Bitcoin last year despite the coronavirus downtimes. Riot Blockchain investors are optimistic the company can deliver a better financial year in regards to the ongoing bull rally.