Bitcoin cryptocurrency market and its impact on the stock market

RIOT has been on a downward trend since mid-February

Riot Blockchain, Inc. (NASDAQ: RIOT) is a cryptocurrency mining company. RIOT mainly focuses on mining Bitcoin. Riot Blockchain also holds investments in blockchain technology companies. RIOT is headquartered in Colorado and the company’s mining facility is operated out of New York. On the last review, RIOT was up 1.3% to $ 33.87.

Last month, on April 8th, Riot announced the acquisition of Whinstone, including all of its assets and activities. Whinstone owns and operates North America’s largest Bitcoin hosting facility. As explained in the company’s press release, Riot sees Whinstone as a fundamental element of its strategy to become an industry-leading Bitcoin mining platform on a global scale. Riot Blockchain reportedly acquired Whinstone for $ 80 million in cash and 11.8 million RIOT common shares.

Despite the downtrend in Riot Blockchain stock from mid-February, the stock is still up a massive 2,500% from its May 2020 low of $ 1.27. Additionally, the shares of Riot Blockchain stock have hit 96% year-to-date. However, the security price remains down 58% from its February high of $ 79.50.

In addition, Riot Blockchain is expected to release quarterly results ahead of the opening on Monday, May 10th. RIOT has exceeded earnings expectations in three of its last four earnings reports published. For the first quarter of 2020, Riot Blockchain stock beat analysts’ estimates by a margin of $ 0.04 and reported earnings per share (EPS) of – $ 0.15. For the second quarter of 2020, RIOT earnings per share fell to – $ 0.31, falling short of expectations with a margin of $ 0.14. For the third quarter of 2020, Riot Blockchain reported earnings spike that rose to – $ 0.04 per share, beating estimates by a margin of $ 0.04. In its most recent quarterly report, Riot Blockchain posted earnings per share of $ 0.16, beating expectations by $ 0.24. Analysts estimate earnings per share at $ 0.20 or the upcoming report.

Basically, after its amazing growth over the past year and the huge surge in interest in cryptocurrency lately, Riot Blockchain still has what it takes to be a growth stock. The company currently has an enterprise value of $ 2.58 billion and a price / earnings ratio of 17.15. Overall, the Riot blockchain stock is a great stock-based alternative to buying cryptocurrency directly for long-term followers of cryptocurrency growth.

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