Why Riot Blockchain Stock Is Soaring... Again

Shares of Riot Blockchain (NASDAQ: RIOT) are up 15% as of 12:00 p.m. EST after the company announced it raised a fresh round of capital by selling stock and warrants in a private placement. A capital raise gives Riot Blockchain some semblance of legitimacy as it takes heat from high-profile short-sellers, including Andrew Left of Citron Research.

Riot Blockchain announced agreements to sell approximately 1.64 million units to investors for $22.50 each. Each unit entitles the buyer to one share of Riot Blockchain, plus one three-year warrant for one share of stock that can be exercised at a price of $40 per share. Warrants are similar to long-dated call options in that they allow investors to acquire shares of a company at a later time at a set price.

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Source: Fool.com