Riot Platforms (NASDAQ: RIOT) stock tumbled 10% on Thursday, possibly linked to a downturn in Marathon Digital Holdings (NASDAQ: MARA) shares and a slowdown in the recent Bitcoin rally.
Marathon Digital (NASDAQ: MARA) witnessed a significant decline of over 16%, leading the broader mining sector lower on Thursday. The company disclosed a set of mixed fourth-quarter results after the closing bell on Wednesday. However, HC Wainwright & Co. remains firm on its Buy rating. Following the financial report, they even raised the price target from $24 to $35.
The crypto-mining industry appears to be reacting disproportionately to Marathon Digital’s Q4 results, coupled with the subdued performance of Bitcoin, which is currently trading around the $61,000 mark.
This downturn has also affected other prominent Bitcoin mining stocks, with Bitfarms (NASDAQ: BITF) and CleanSpark (NASDAQ: CLSK) experiencing declines.
The market slide occurred just a day after Riot Platforms made a noteworthy announcement regarding the acquisition of 31,500 WhatsMiner M60S miners from MicroBT, a leading Bitcoin mining hardware manufacturer. This strategic investment, valued at $97.4 million, aligns with Riot’s broader goal of enhancing its self-mining operations and improving efficiency at its Rockdale Facility.
Earlier this week, Truist Securities revised its forecast for Riot Platforms (RIOT), upping the target share price to $110 from the previous $90, all the while affirming its Buy rating.
Riot Platforms (NASDAQ: RIOT) Stock Performance
RIOT stock plunged 9.78% to close at $14.12 on Thursday. The traders had exchanged hands with 39,279,559 (39.27 million) shares compared to the average daily trading volume of 30.92 million.
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