Riot Blockchain Hits A New High: Will it Sustain?
The cryptocurrency space has been buzzing over the course of the past weeks and that has only come as a major boost for companies that are involved in the sector. One of the companies that seem to have benefitted due to the recent rally in Bitcoin is Riot Blockchain Inc (NASDAQ:RIOT) and its stock has gained substantially over the course of the past two weeks.
Bitcoin is Back in Action
The price of Bitcoin has gone up considerably during the period and the Riot Blockchain share also rallied by as much as 40%. In such a situation, it could be worthwhile for investors to take a closer look at the company more closely and take stock of the recent developments.
In the middle of July, the company made a major announcement that could have long term positive ramifications. Riot Blockchain announced that it had received a total of 1000 units of the S19 Pro Antiminers from the company BitmainTech PTE Ltd. It is only the first of the three orders S19 and S19 Pro Antiminers that are going to be received by Riot.
The total number of orders makes up as many as 3040 units of the two products. The company started deploying the S19 Pro Antiminers as soon as the order was received that it was completed by July 17.
The company had earlier decided to move its mining operations to Massena, New York in order to get the benefit of highly competitive electricity costs in the state. However, in order to expand its operations, Riot has had to raise its mining capabilities considerably and that would have meant higher electricity costs. For instance, the new operation will eventually consist of as many as 4000 S17 Pros and 1000 S19 Pros.
Once that happens, the total hashing power capacity is going to go up by as much as 45%. In such a situation, the lower electricity costs in New York are going to work to Riot’s advantage. Moreover, the company has been known for running an energy-efficient operation for quite some time and that is due to Riot’s commitment to using the best performing mining hardware available.
Riot is one of the very few of the cryptocurrency mining companies that are listed on the NASDAQ and earlier on in June it had announced some important corporate updates. It announced that it was going to continue to invest in its Bitcoin production business and look to optimize those operations continuously. On top of that, Riot also announced that it signed a colocation agreement with the company Coinmint. The agreement is meant for not only boosting the company’s efficiencies related to its costs but also improve in Bitcoin production.
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