Bitcoin

Is Riot Blockchain an Obvious Buy After Bitcoin Halving?

Published

10 months ago

15 June, 2024

O Bitcoin The (CRYPTO:BTC) halving event occurred in April, as expected. Bitcoin Miners now receive half the rewards for the same amount of work. Mining experts are like Riot Platforms (NASDAQ: RIOT) facing insurmountable economic challenges now, or are they about to soar due to the rising price of Bitcoin? Or is the truth somewhere in between?

Let’s take a closer look at Riot platforms to see what’s going on.

How Riot adapted to the 2020 halving

This isn’t Riot’s first halving rodeo. The company used to pursue patents on veterinary drugs, but acquired a small Bitcoin mining company in 2017 and shifted its focus to blockchain operations the following year. Two years later, on May 11, 2020, the third Bitcoin halved it happened.

It was a different time for Riot. In addition to the global impact of the current coronavirus pandemic, the company was building its Bitcoin mining infrastructure. Crypto mining generated $2.4 million in revenue in the first quarter of 2020 and $23.2 million a year later. Riot’s assets and equipment – largely responsible for its cryptocurrency mining hardware and facilities – have tripled in value over the same period. And the cost of electricity in the first quarter more than quintupled, from US$1.4 million to US$7.5 million.

Riot was burning a lot of cash at that time, keeping the lights on thanks to dilutive stock sales and a small amount of Bitcoin sales. And thanks to the halving of Bitcoin miner rewards, Riot’s Bitcoin production fell 28% year over year in the first full quarter following the 2020 halving.

Bitcoin prices were on the rise in this period, gaining a modest 10% from September 1, 2019 to September 1, 2020. But then some halving effects came in full force.

Survival of the Fittest in Bitcoin Mining

Halving events have put a lot of pressure on inefficient crypto miners. Many people and companies that generate Bitcoin data blocks with low-power hardware or high electricity costs are forced out of business with each four-year halving cycle. When these failed mining experts leave, the high-efficiency miners who remain will get a higher percentage of the total rewards.

“When these higher cost producers go down, [mining] the difficulty adjusts and this widens the margin again as we mine more Bitcoin,” Riot CEO Jason Les explained in a recent earnings call. “To achieve that long-term, to be a leading Bitcoin mining company, we have to focus on having that low energy cost and maintaining a low production cost in tougher spots in the market.”

The story continues

Riot’s strategy for the 2020 halving

The April 2020 halving presents another “hard spot” in the Bitcoin mining market. If history is any guide, low-cost miners like Riot should prosper as inferior rivals fade away – and the price of Bitcoin should start to rise as this dynamic plays out. Here’s how Riot’s business results performed during the 2020 halving cycle:

RIOT Revenue (TTM) Chart

Past results are no guarantee of future success and each halving cycle is different. Still, the economic themes surrounding this crypto market driver tend to rhyme and echo over time. In fact, Riot is in a stronger position this particular cycle, armed with a rich balance sheet and more substantial mining operations. The company is even reselling power to the Texas power grid as heat waves overwhelm the local power grid.

Riot is a no-brainer, but maybe a buy

Is Riot an obvious buy, then?

Not necessarily, but the stock could post solid gains if this halving cycle works like the last one. Riot’s market position, strengthened by its low-cost operations and expanding infrastructure, provides a strong case for potential growth.

However, you should review your risk tolerance, recognize Riot’s high-risk, high-reward nature and act accordingly. This investment is not for the timid, but could be a strategic addition for those who are optimistic about Bitcoin’s long-term prospects.

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Is Riot Blockchain an Obvious Buy After Bitcoin Halving? was originally published by The Motley Fool

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SatoshiTimes Staff

We are the editorial team of SatoshiTimes, where seriousness meets clarity in cryptocurrency analysis. With a robust team of finance and blockchain technology experts, we are dedicated to meticulously exploring complex crypto markets with detailed assessments and an unbiased approach. Our mission is to democratize access to knowledge of emerging financial technologies, ensuring they are understandable and accessible to all. In every article on SatoshiTimes, we strive to provide content that not only educates, but also empowers our readers, facilitating their integration into the financial digital age.

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Bitcoin

What to watch for in the markets

Published

9 months ago

21 July, 2024

SatoshiTimes Staff

Photo: Andrew Harnik (Getty Images)

After witnessing one of the largest global IT outages on record, affecting the travel, finance and healthcare sectors worldwideThis week is set to see more political drama, events, and earnings reports from tech giants.

Donald Trump’s ‘Lovefest’ Sets Jamie Dimon Up for Consideration for Treasury Secretary Job

Let’s take a look at what awaits us:

Major companies will release their earnings reports

Major tech companies and others will release their earnings reports this week, paving the way for what the second half of 2024 will look like.

Monday

Verizon will report earnings before the start of operations.

Tuesday

Coca-Cola, Comcast and UPS are all set to report earnings before the market opens.
Tesla will report earnings in the morning, while General Motors will report earnings in the evening.
Alphabet and Visa will report results after the market closes.

Wednesday

AT&T will release its report before the market opens.
Ford and Chipotle will report earnings after the market closes.

Thursday

Earnings reports from AstraZeneca, American Airlines and Southwest Airlines will be released before the market opens.

Trump to speak at Bitcoin conference

Presumptive Republican presidential nominee Donald Trump will speak at the next Bitcoin Conference in Nashville, Tennesseewhich is scheduled for July 25-27. While this is the first time a presidential candidate will attend the conference, it has sparked a debate over whether the crypto-friendly Trump will receive support from the crypto community in the upcoming election.

In addition to Trump, independent presidential candidate Robert F. Kennedy Jr. will also discuss crypto during the conference. Crypto advocates such as ARK Investment’s Cathie Wood, MicroStrategy’s Michael Saylor, and whistleblower Edward Snowden are among some prominent names who will be participating in the conference.

Ether ETFs are on the way

New Ether Spot ETFs are set to begin trading on Tuesday, July 23. Much like the spot Bitcoin ETFs, these ETFs will allow investors to buy the second most popular cryptocurrency like stocks. BlackRock, Ark Invest/21Shares, VanEck, Grayscale, Fidelity, Bitwise, Franklin Templeton, and Invesco/Galaxy Digital are all set to offer Ether ETFs. Crypto asset manager Bitwise predict that trading in the Ether ETF will drive the price of Ether higher, potentially surpassing $5,000.

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Bitcoin

Cryptocurrency’s Biggest Winners and Losers in a Second Trump Presidency

Published

9 months ago

21 July, 2024

SatoshiTimes Staff

Cryptocurrency’s Biggest Winners and Losers in a Second Trump Presidency

Bitcoin miners and cryptocurrency companies that have been blocked from going public in the U.S. could ultimately be the biggest winners in the digital asset world under a second Donald Trump presidency. Foreign companies at risk of losing market share could end up being the biggest losers.

That’s the view that’s taking hold among market participants and observers in the wake of the former president’s growing embrace of cryptocurrency as his chances of election grow. survey released Thursday by CBS News showed Trump with the majority — 52 percent — of likely voters in his likely November rematch with President Joe Biden.

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Bitcoin

Bitcoin, Ethereum, Solana and Cryptocurrency Markets Look Ready to ‘Send’ as Stars Align, According to Investor Chris Burniske

Published

9 months ago

21 July, 2024

SatoshiTimes Staff

Bitcoin, Ethereum, Solana and Cryptocurrency Markets Look Ready to ‘Send’ as Stars Align, According to Investor Chris Burniske

Cryptocurrency investor Chris Burniske says Bitcoin (BTC), Ethereum (ETH), Solana (SUN) and the cryptocurrency market in general seem poised for a run.

Former Head of Cryptocurrency at ARK Invest account his 292,200 followers on social media platform X that several catalysts are aligning, suggesting that digital asset markets are on the verge of a bull run.

According to Burniske, a partner at venture capital firm Placeholder, the highly anticipated launch of Ethereum-based exchange-traded funds (ETFs), Republican presidential candidate Donald Trump speaking at an upcoming Bitcoin event, and the current state of the BTC, ETH, and SOL charts all suggest significant optimism for the cryptocurrency markets.

“With ETH ETFs set to go live, Trump speaking at The Bitcoin Conference, and BTC, ETH, and SOL charts looking [they do] (while stocks are weak), it’s hard to imagine a world where we don’t ship next week.”

Reuters recently reported that preliminary approval for ETH ETFs has been granted as the Bitcoin Conference is scheduled to take place from July 25-27.

BTC, ETH, and SOL are trading at $67,333, $3,528, and $174 at the time of writing, respectively.

The venture capitalist too provides an update on his prediction that the total crypto market cap will eventually hit $10 trillion. According to his chart, the path to $10 trillion is currently “23%” complete, as it sits around $2.2 trillion.

Source: Chris BurniskeX

Earlier this month, Burniske he said in an interview with Real Vision CEO Raoul Paul that he has his eye on the Move ecosystem, which was originally built by social media giant Meta and then used to develop layer 1 blockchains Sui (IUE) and Apts (APT).

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Bitcoin

Here’s the next target for BTC before bulls can hold out for $70K

Published

9 months ago

21 July, 2024

SatoshiTimes Staff

Here’s the next target for BTC before bulls can hold out for $70K

Bitcoin’s recovery is going well, and the market is seemingly poised to create a new all-time high in the near term.

Technical analysis

Per NegotiationRage

The daily chart

As the daily chart shows, the price of Bitcoin has been rising since it broke above the 200-day moving average.

The market has also reclaimed the $60K and $65K levels and is moving towards the $68K resistance zone, which could be the last hurdle before creating a new all-time high. With the RSI also indicating that the price has clear bullish momentum, it could be just a matter of time.

Source: TradingView

The 4-hour chart

Looking at the 4-hour chart, it is evident that the price has been rising rapidly since breaking the downtrend line to the upside. The market also broke the $65K resistance level with momentum, turning it into a support.

While almost everything points to a new record high in the coming weeks, there is one worrying sign. The RSI is showing a clear bearish divergence between recent price highs, which could indicate a correction or even a reversal in the near term.

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Cryptocurrency Charts by TradingView.

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