Why Riot Blockchain Stock Came Crashing Down Today
Shares of Riot Blockchain (NASDAQ: RIOT) came crashing down on Wednesday, even though there was a lack of company-specific news to report. As of 12:30 p.m. EST, the stock was down 11%. The price of bitcoin is likely having some influence on the stock today. Furthermore, investors could be digesting news recently released from the company, even though it wasn't released today.
According to CoinDesk, the price of bitcoin has fallen 6% over the past 24 hours. Cryptocurrencies are volatile, so definitively explaining why bitcoin is down right now is just guesswork. However, it affects Riot Blockchain. To put it simply, the company provides computers to run the bitcoin blockchain network and, in return, it's paid in bitcoin tokens. But it periodically liquidates tokens to pay the bills. Hypothetically, if Riot Blockchain was to sell some bitcoin today, it would be getting 6% less than it would have just 24 hours ago. That's significant.
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Source Fool.com
