Why Riot Platforms Stock Gained 23% Last Month
Shares of Riot Platforms (NASDAQ: RIOT) rose by 23.3% in December 2023, according to data from S&P Global Market Intelligence. The crypto-mining specialist rode higher as Bitcoin (CRYPTO: BTC) continued to rise, adding 12.7% to the largest cryptocurrency's value last month. Moreover, Riot produced 552 Bitcoin tokens in November, showing a robust increase year over year and an even sharper uptick from slower operations in the late summer months.
Bitcoin's recent gains relied on a couple of separate catalysts.
The crypto winter that started in 2021 is following a predictable tick-tock pattern in preparation for this spring's halving of rewards for crypto miners. With fewer Bitcoins issued in response to the same power-hungry mining activity, the economics of Bitcoin mining won't work unless prices go up. And without miners, the Bitcoin blockchain network grinds to a halt due to a lack of properly processed transactions. So Bitcoin's operating future depends on a price spike approximately every four years, and the next rewards cut is scheduled for late April 2024.
Source Fool.com
