Why Riot Blockchain Stock Popped Today
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Shares of Bitcoin (CRYPTO: BTC) miner Riot Blockchain (NASDAQ: RIOT) surged to close 7.7% higher on Tuesday after analysts at two separate investment banks voiced positive opinions on the stock.
Commenting last week on Riot Blockchain's announcement that it has completed its acquisition of the 300 megawatt Whinstone facility in Texas (at a cost of $80 million in cash and 11.8 million Riot Blockchain shares), analysts at H.C. Wainwright said the acquisition of this power source "nicely enriches operating characteristics and the prospect of a Riot investment."
In a note covered on TheFly.com, the analysts reported that Whinstone is big enough to expand its power output to as much as 750 megawatts, at a cost of $0.025 per kilowatt-hour. Wainwright says this is "about the lowest" price it's seen in crypto mining, which should give Riot Blockchain an advantage in its cost of production of new Bitcoins.
Source Fool.com
