Riot Blockchain is a bitcoin mining company in the United States. Besides Mining, they also own and manage crypto assets and traded stocks.
Considering Bitcoin and Riot have a strong correlation, how does Riot track bitcoin?
Learn that and more below.
Does Riot Track Bitcoin?
Yes, Riot Tracks Bitcoin
Riot has a direct positive correlation with Bitcoin. Therefore any moves Bitcoin makes affect the price of Riot. If Bitcoin rallies, so does Riot. The same is true during market downturns. If Bitcoin slumps, so does Riot.
What Is Riot?
Riot Blockchain (using the ticker NASDAQ: RIOT), is a US company that focuses on supporting the Bitcoin blockchain by expanding large-scale mining of the crypto asset.
Their main goal is to support and increase the infrastructure capacity of Bitcoin miners. The result? An increased hash rate within the Bitcoin network.
Riot has several Bitcoin mining operations within the US:
- The Whinstone facility in Rockdale, Texas and
- Hosted Miners in Coinmint LLC’s Massena facility in New York
The Whinstone facility is a fully-owned subsidiary of Riot Blockchain.
Interested in mining? Learn how to mine Bitcoin from home.
Is Riot Blockchain A Proxy For Bitcoin?
Riot Blockchain is a proxy for Bitcoin.
Since Riot Blockchain mines and tracks Bitcoin, its stock price has a direct positive correlation to Bitcoin.
What does that mean?
If Bitcoin has positive gains in the market, a positive correlation means the price of Riot will also enjoy a positive gain. A slump in Bitcoin prices also means a drop in Riot stock prices.
So how is Riot a proxy?
Since the price of Bitcoin is quite high, not many investors can trade it directly. Instead, they can enjoy exposure and take advantage of Bitcoin’s volatility by buying Riot stocks.
Since these two assets have a positive correlation, they’ll make identical moves in the markets.
Is It Worth Investing In Riot?
If you’d like some exposure to cryptocurrency in your portfolio, buying Riot can be a worthwhile investment. The first benefit? Its positive correlation with Bitcoin gives you similar exposure to Bitcoin’s volatility at much lower capital requirements.
Riot blockchain offers you an easy entry into the crypto world with a safer landing.
Since the company plays a critical role in mining Bitcoin, its stock price movements and trading volumes will be similar to Bitcoin’s. That gives you an identical opportunity to gain an upside in your portfolio.
Want to start investing in crypto? You can get started with $100.
How Does Riot Track Bitcoin?
Riot Blockchain tracks Bitcoin in three key ways:
- Because of the direct correlation between Bitcoin prices and Riot stock prices, Riot is positioned to experience the same bullish or bearish trends that surround Bitcoin.
- Riot has direct investments in mining Bitcoin. Besides owning the Whinstone facility in Rockdale and using the hosting facility in Massena New York, the Riot Blockchain is investing in new miners. In Q1 of 2023, they plan to deploy several S!9 miners and increase their company hash rate to 12.8EH/s
- Riot Blockchain owns and holds a large number of Bitcoin. This is also the reason for the correlation. Any market moves that affect the price of bitcoin will affect the price of Riot.
How Many Bitcoins Does Riot Own?
At the time of this article, Riot Blockchain owns close to 3900 bitcoins. In their financial reports and operating highlights of December 2021, Riot confirmed they closed with 3812 BTC.
With their 400 BTC/quarter production rate, we estimate they own over 4000 BTC. These were successful results, considering a hash rate of 4.3EH/s and consuming an estimated 136MW.
Is Riot Blockchain Profitable?
To date, Riot Blockchain is yet to achieve profitability.
Although Riot Blockchain (NASDAQ: RIOT) is a well-run company, they’re still struggling to become profitable year after year. In 2020 and 2021, they lost about $12.7 million and $7.9 million respectively.
Riot draws its profits from two primary sources: Bitcoin mining and trading stocks on the NASDAQ 100.
However, if you traded RIOT, you could make profits. Your profitability often varies depending on the buy/sell difference. When the stock prices surge, there is unlimited opportunity for an upside or increased profits.
For instance, in 2021, investors bought RIOT stock in January at $18.80. Some held the stock through the year and sold at $23.53 in December. Others cashed when the stocks peaked at $72.76 in February.
For the miners, Riot recorded a significant increase in total revenue, mining revenue, margins, and Bitcoin production. Although adding to the number of Riot’s mined Bitcoins, it didn’t reflect profits in their financial statements.
More Ways To Track Bitcoin
There are many ways to help you track your bitcoin investment. Below are several valuable tools you can use:
Coinbase lets you grow your Bitcoin portfolio and track it in a singular interface. You can also use it to track the price of Bitcoin and manage your crypto portfolio.
You can transfer or receive fiat money from other Coinbase accounts or interlink your personal accounts with your wallet.
Coinbase lets you purchase or sell multiple cryptocurrency coins with smoother withdrawals. The interface is user-friendly for easy tracking. Further, you can find upcoming market updates and trends for your consideration.
Thanks to Personal Capital, you can keep tabs on many coins over several exchanges. Personal Capital’s development team has added more functions to the app to make Personal Capital a top crypto tracker.
The Riot Blockchain had a direct relationship with Bitcoin, and therefore you can use Riot to track Bitcoin. Although not to be construed as trading advice, Riot is an extraordinary stock to pick. Riot isn’t profitable yet, but as they scale their mining efforts, they should achieve profitability soon.