Riot Platforms (NASDAQ: RIOT) stock soars over 23% in the intraday trading Monday amid strength in the price of Bitcoin (BTC/USD), which had gained momentum after a recent halving event.
Bitcoin-mining stocks, including Riot Platforms (RIOT), have seized the attention of investors following the recent halving event.
Bitcoin network completed its fourth halving last week. This programmed process, built into the Bitcoin protocol, occurs approximately every four years or after every 210,000 blocks.
During a halving event, the network reduces miner rewards for validating transactions by half. In the latest halving, miner rewards decreased from 6.25 bitcoin to 3.125 bitcoin.
Bitcoin demonstrated considerable volatility leading up to the halving, consistent with historical patterns that indicate a tendency for crypto markets to rally in the months following such events.
JPMorgan analyst Reginald Smith views the halving as a big test for mining companies. However, he perceives it as a positive development for the strongest operators in the long term, as reported by CNBC.
Smith reportedly said in a recent note to clients,
“All else equal, the halving will cut industry revenues in half, triggering a wave of consolidation and business closures, while (hopefully) rationalizing the network hash rate and industry capex, which is ultimately good for the remaining operators.”
Riot Platforms (NASDAQ: RIOT) Stock Reaction
At the time of this report, RIOT stock stands at $11.24, showing a 23.11% increase from the previous trading session. This week, it has surged in value by 31.16%. Trading activity has seen 57,542,992 (57.54 million) shares changing hands, surpassing the average daily volume of 24.27 million.
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment.
