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Riot Blockchain Is Ready To Fly

Jan. 03, 2022 2:28 PM ETRiot Platforms, Inc. (RIOT)29 Comments


  • RIOT has been pummeled in recent weeks.
  • Bitcoin weakness isn't helping, but Riot is cheap even relative to prior selling episodes.
  • With capacity expanding nicely and a new acquisition, I think Riot's risk/reward is very good at the moment.
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Bitcoin Cryptocurrency trends Graphs and charts

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The world of cryptocurrencies has been wild in the past couple of months, to say the least. OG Bitcoin (BTC-USD) has been very weak, most of which occurred about five seconds after this bullish

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This article was written by

Josh Arnold profile picture

Josh Arnold has been covering financial markets for a decade, utilizing a combination of technical and fundamental analysis to identify potential winners early on in their growth cycles. Josh's focus is mainly on growth stocks. His goal is efficient and profitable use of capital, which overly rigid buy-and-hold strategies do not allow.

Josh is the leader of the investing group Timely Trader where he focuses on limiting risk and maximizing potential reward. Features of Timely Trader include: real-time alerts, a model portfolio, technical charts, sentiment indicators, and sector analysis to find the best trading opportunities. Learn more.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of RIOT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Comments (29)

ThreeDayCondor profile picture
If the original author was true to his word, and put on stop loss orders at $20 (since he expected support would hold at $23 or $22)… then he is all sold out of Riot, as of Friday night.

Riot traded below $20 for about 3/4ths of the day today. That’s a fact.

So, if the author is right, he’d already be out — and Riot may see mid-teens next week, if Bitcoin falls toward $38,000 as Mike Novogratz (long term bull) has predicted (he’s reversed this week — from expecting $55,000, to expecting $38,000 near term).

What a joke these prognosticators — and these “assets” are. 30% swings are not stores of value.

@ogiedogie Yup. And if you play it right, you can make A LOT of $$$. Enjoy the ride. Buy low, sell high. When in doubt write calls & puts. Easy peasy.
Mark Alexander profile picture
@Josh Arnold

You're really pumping the miners. There's a good chance you're right about this near term, but RIOT is still a $#!+ value vs. bitcoin. It's a better relative value now than most of last year, but that's only because it was a spectacularly horrific value vs. bitcoin over most of last year. It's probably also a better buy than MARA. Unless management proves incompetent or China prohibits bitcoin miner manufacturing (both are possibilities as far as I know), Canaan (CAN) is a massively better value than either.
@Mark Alexander Nah. MARA is best in breed. 23+ hash rate later this year. Who tops that mining capacity???
@mutsavj it's an arms race. You are correct.
@arc871 Arms race for sure. BUT nobody else has the capital and more importantly, pre-orders for new miners than MARA. Their hash rate at 23 will be Top 3 in THE WORLD. They'll be mining over $1,000,000,000 "per year" soon. This current share price is truly an OPPORTUNITY.
Nice article. But gotta say I owned RIOT over the summer and sold it and oved onto MARA, which is best in breed. RIOT's hash rate will achieve 9 in 12 months, MARA will be at 23+ ...now that's some mining power for ya. MARA will be mining more than twice the coins as RIOT and they don't spend money on building, well, buildings (they pay others to lease). Anyway, ALL this depends on the price of bitcoin. If you are bullish, MARA will hit $150 by Q4 (from $34 today) ... do the math. Good luck to all (longs ...ignore Condor if he shows up on here with his negativity ...lol).
@mutsavj Yeah, they are shoveling coal like crazy over at Hardin to get those Mw for that 23+ hash rate...LOL. Comparing RIOT to MARA is like comparing the Rock of Gibraltar (RIOT) to a smoke screen.
bazooooka profile picture
@mutsavj yup if you think BTC doubles/triples you will want whoever has the most hash rate and hodl right now and whoever continues to invest since the miner backlog will never end. However if BTC has peaked for this bull cycle both these names will be in trouble.
@Tatech lol ...yeah, right. Just look what happened over the summer. MARA roared higher, RIOT eh not so much. You might has well just by the SPY and I'll take the QQQ's
prudent 576 profile picture
I hope RIOT is ready to fly, but something tells me the value hunters have not finished realigning portfolios yet. And, if the markets look like they're taking off again (because COVID is fading), the fed may take the opportunity to do the 1st rate raise of the year, in an attempt to reign in inflation. Then there's China vs Tiawan and/or Russia vs Ukraine getting giggy with aggression
bazooooka profile picture
Three billion bucks for nine Exahash still kinda pricey when some claim they can build out for one third of that. If BTC doubles they will be well positioned; if it halves they will be in trouble.
Murad Shawar profile picture
CLSK is the better choice if you want BTC mining
>>it’s not a case of investing in hopes and dreams; this is real.<<

Yep, unlike a certain competitor (who I won't name) RIOT is the real deal! AND, as far as risks go...well, no one does a better job of informing the investor of risks than RIOT, even I winced at everything they list (SEC filings). RIOT is an honest and above board company (I had to get that in before Condor showed up).

Bitcoin will get knocked around a bit but it will best all attempts at manipulation (it will never go to zero)...HOWEVER, if I can pick some up at $25,000 after the crash of '22 (if and when) I will...but I won't hold my breath.

Good article, thank you.
ThreeDayCondor profile picture
@Tatech — “…Novogratz says $38,000 for near term Bitcoin.”

How’s that gonna’ work got you. — and Riot?

Huge (and growing) losses from operations will continue to be disclosed at Q4 results time, and well into 2022.

That will make at least 15 straight quarters of operating losses, mining Bitcoin. What a dumb company!

@ThreeDayCondor >“…Novogratz says $38,000 for near term Bitcoin.”<

They're probably right about that.

>What a dumb company!<

Only dumb if they sell any at that price, of course they won't...that would be dumb.
AssetFlower profile picture
Curious if you’ve looked at BITF and comp’ed is versus RIOT?
My problem with RIOT is that it seems to be mining for BTC alone,...right?

BTC is just one coin. During the entire year 2021, by the end, BTC failed to perform annually as well as nearly a dozen alternative coins. Mining a coin with falling value is not really a valid business plan.

I sold 90% of my RIOT (purchased in 2020) in H1 2021, at a strong profit, due to wild over-buying FOMO in early 2021. Since the shift to ALT Coins, RIOT has had problems, understandably.

Can the author address this issue, a growing diversity of growing ALT Coins, in the context of a business model of mining BTC?
@Hank890 well they can't mine these ALT coins you're referring to. So you mean they should purchase ALT coins and become validators?
@Hank890 You just convinced me to buy more RIOT, thx
Bitcoin is the only crypto that is truly decentralised! Sooner or later 99% of altcoins will be worthless, I'll stick with digital Gold any day of the week
josh I am fighting my way out of your last call on Mara are you sure you know what you are doing I am starting to question it
@Harvey 44 if you sold Mara shame on you .. this will be 300 in the future..
ThreeDayCondor profile picture
@Harvey 44 — I’m pretty sure he doesn’t know what he’s doing.
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