Markets

Why Riot Blockchain Stock Jumped 21.8% in March

What happened

Shares of Riot Blockchain (NASDAQ: RIOT) dipped 26.2% in March, according to data from S&P Global Market Intelligence. The stock surged thanks to momentum for the company's Bitcoin mining operation and strong pricing for the cryptocurrency.

RIOT Chart

RIOT data by YCharts

Riot published a business update on March 15, announcing that the company had mined 302 new Bitcoins in the fourth quarter. That update brought its total Bitcoin mining tally for the fiscal year to 1,005. The mining specialist paired the update with news that it would be purchasing 1,500 Antminer cryptocurrency mining rigs from Bitmain Technologies in a $7.53 million deal.

A bitcoin logo on a coin.

Image source: Getty Images.

So what

Riot Blockchain has revealed that it had produced 125 new Bitcoins in January, which represented a 23% increase over December's total. Momentum then picked up in February, with the company mining 179 new Bitcoins in the month -- representing a 43% increase compared to January's result.

Riot also published its fourth quarter results on March 31 and delivered results that came in significantly ahead of the market's expectations. The company's mining revenue rose 116% in the fourth quarter, reaching $5.2 million. The business also posted a net profit of $3.9 million in the period, up from a loss of $3.4 million in the prior-year quarter. Riot ended the year with its hashing capacity up 460% and a 110% increase for its Bitcoin on the balance sheet.

Now what

Riot Blockchain stock has lost a bit of ground early in April's trading. The company's share price is down roughly 1.9% in the month so far.

RIOT Chart

RIOT data by YCharts

Riot Blockchain is moving forward with the deployment of Antminer rigs that it has purchased, and is looking for additional opportunities for miner purchasing and improving its hash rate growth. The company is also working on developing and testing new Bitcoin miners with partners including Enigma Digital Assets and Lancium. Riot's focus on Bitcoin mining means that its stock could see volatile swings in conjunction with pricing for the cryptocurrency, but it looks like the company is making significant progress on ramping up its mining operations.

Riot Blockchain has a market capitalization of roughly $4.4 billion and is valued at approximately 21 times this year's expected sales.

10 stocks we like better than Riot Blockchain, Inc
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Riot Blockchain, Inc wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of February 24, 2021

Keith Noonan has no position in any of the stocks or cryptocurrencies mentioned. The Motley Fool owns shares of and recommends Bitcoin. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

RIOT BTC

Latest Markets Videos

    The Motley Fool

    Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

    Learn More