Whether you are considering investing in Riot stock or you are already invested in this digital currency, there are several things to keep in mind. These include why you should invest, how the Riot blockchain works, and what to expect from the future of the Riot token.
Bioptix changed its name to Riot Blockchain
Previously known as Bioptix, Riot Blockchain is a Colorado-based biotechnology company that has pivoted into the cryptocurrency and blockchain industry. It is one of the only public companies in the United States to focus solely on the crypto sphere.
Before the name change, Bioptix made diagnostic machinery for the biotech industry. The company incurred losses of $11 million in the first nine months of the year. It also laid off a significant portion of its workforce. In addition, it had burned through a considerable amount of cash.
The company announced a pivot into the crypto and blockchain industry in October. It acquired a mining operation in the midwest, purchased mining equipment for cryptocurrency, and made investments in two other blockchain-related firms. This transition has been met with skepticism from the crypto community. However, some investors are pleased with the new direction.
Tess
Getting a tad more technical, the TESS riot stock is an investment in a nifty little software application that provides a cryptocurrency accounting and audit technology service. The company also operates a subsidiary that is tasked with developing a blockchain-based escrow service for wholesale telecom carriers.
The aforementioned oh-so-tiny software app will not only allow companies to track financial transactions but will provide an immutable ledger, as well as a platform to implement a host of other applications centered on riot stock cryptocurrency. Aside from this, it’s worth mentioning that TESS is headquartered in Toronto, Ontario and that it is a private company.
In addition to the software app, TESS has also entered into a definitive agreement to merge with a Canadian public company. The merger is expected to close in the second quarter of 2018.
While the aforementioned transaction is indeed the wave of the future, the fact remains that the company’s shares are still priced at a hefty premium. The price may have to go down further, as the company is burning through cash, and the CEO has already been replaced with a newer, less experienced executive.
Verady
Among the many things that Verady, LLC does is provide accounting and audit technology for cryptocurrencies and other digital assets. It also launched a network of financial reporting tools called Vermont.
The company has a number of other projects, including one aimed at developing a blockchain-based escrow service for wholesale telecom carriers. In the last few months, the company has made a series of acquisitions in the crypto-currency industry, including a 52% stake in Tess, a blockchain-based telecom solutions provider. In addition, the company recently invested in Coinsquare, a Canadian cryptocurrency exchange.
It’s no secret that the crypto industry is growing faster than the economy. According to Statista, the global market for blockchain businesses will rise from $1.2 billion last year to $23.3 billion by 2023.
Bitmain S19 Pro Antminers
Earlier this month, Riot Blockchain, a Nasdaq-listed company, announced a milestone purchase of next-generation Bitmain Antminers. The company has acquired over 20,140 units from Bitmain and plans to add another 8,000 units by January 2021. These new units will boost the company’s hash rate capacity by more than 55 EX/s, according to the company’s estimates.
The company has also agreed to a delivery schedule that will see it receive 2,000 S19 Pros per month starting in April 2021. It is estimated that Riot will have 47 MW of energy deployed when the order is fully executed. This will be equivalent to approximately 4.6% of the network’s current total capacity.
The company will also expects to have 25,650 S19 Pros in operation by September 2021. When fully deployed, the Antminers will have a total hash rate capacity of 2.6 EH/s.
Investments
RIOT is one of the largest publicly traded miners of Bitcoin. It has a market cap of over $4.19 billion and has been a target of aggressive speculative trading. A recent drop in the price of Bitcoin has led to a reassessment of the stock’s value.
It has been a difficult year for RIOT. The price of Bitcoin has plunged from $65,000 in November to about $20,000. As a result, RIOT’s shares lost nearly all of their value. However, the company managed to keep its operations going in the third quarter.
In fact, RIOT’s revenues are expected to increase by 82% in the coming year. As a result, it looks like the company’s stocks are cheap at seven times forward earnings.
A recent analyst study from H.C. Wainwright echoes this sentiment. In addition, the company’s CEO, Kevin Dede, has reiterated a $17 price target for the stock. The analyst also reaffirmed a Buy rating.
