How Riot Blockchain Shares Fell 12.5% Last Month Despite Rising Bitcoin Prices
Shares of Riot Blockchain (NASDAQ: RIOT) fell 12.5% in July 2021, according to data from S&P Global Market Intelligence. The Bitcoin miner's negative move ran counter to a 16.6% increase in the price of Bitcoin (CRYPTO: BTC) itself. However, the disconnected moves make more sense when viewed from a broader perspective.
As a dedicated Bitcoin miner with 2,243 BTC tokens to its name, an active fleet of 24,000 Antminer rigs, and a hash rate capacity of 2.4 exahashes (2.4 billion billion hash calculations) per second, it stands to reason that Riot should be sensitive to Bitcoin pricing trends. As a result, this stock tends to amplify the underlying Bitcoin chart, rising faster when times are good and falling more deeply when the crypto market faces challenges.
Riot saw both of these scenarios play out in July. In the first couple of weeks, Bitcoin prices fell more than 12% due to regulatory challenges in China and unsupportive tweets from Tesla CEO Elon Musk. Riot Blockchain's stock fell more than 30% during this period.
Source Fool.com
