This Bitcoin (CRYPTO: BTC) miner, Riot Platforms (NASDAQ: RIOT), is not afraid to be revolutionary. Even if SEC Chairman Gary Gensler calls Bitcoin a "highly speculative, volatile underlying asset," Riot Platforms keeps producing Bitcoin.
Riot Platforms stock, like Bitcoin, is volatile. An appropriate stake in this ambitious Bitcoin miner might yield huge returns for crypto-friendly portfolios. Riot Platforms shares gained significantly pre-COVID-19. Riding out the peaks and valleys feels easier now than it was then.
Riot Platforms stock was $1 five years ago. Speculative frenzy followed the pandemic scare, and the share price briefly rose above $70 in 2021. Maybe the Fed squelched that rally, not Gensler. As the central bank raised interest rates, traders sold Riot Platforms shares.
The Riot Platforms share price is at $11.90, making shareholders princes or paupers depending on when they entered the deal. Anyhow, a $1,000 Riot Platforms stock investment at $1 per share five years ago would have grown 1,060% to $11.60. Thus, that $1,000 investment is worth $11,600.
Since Riot Platforms is no longer a nano-cap company and the starting point isn't $1, it won't be possible to repeat results in five years. Even yet, Riot Platforms isn't a bad Bitcoin producer to back. Riot Platforms' Bitcoin production increased 19% in 2023 after investing in more miners. If you can believe it, Riot Platforms created 14.4 Bitcoin per day in February and held 8,067 Bitcoin.
Riot Platforms is an avid cryptocurrency miner, but it just invested in Texas-based Reformed Energy, which turns solid and liquid waste into energy. This may indicate that Riot Platforms is serious about tackling crypto mining's massive energy needs. Riot Platforms seems aggressive but cautious in Bitcoin production. That's wonderful, but Bitcoin mining may soon become less profitable.
As you may know, the reward for mining Bitcoin will be halved every four years to regulate the circulating supply. Another Bitcoin "halving" or "halvening" event is likely on April 19. The halving could change Bitcoin and Riot Platforms in different ways. The sample size is tiny, but Bitcoin's price has risen before or after halving events since 2009. By now, the market may have bought up Bitcoin's price in anticipation; the SEC's approval of spot Bitcoin ETFs added to cryptocurrency's current enthusiasm.
Riot Platforms has risen with Bitcoin in 2024, but the halving event may affect Bitcoin miners. Riot Platforms will keep its pile of mined Bitcoin if cryptocurrency prices stay high. At the same time, investors may sell mining shares in expectation of a halving of Bitcoin mining rewards.
How crypto-related stock traders will act in the near future is unknown. That may not be the biggest issue of buy-and-holders looking to recreate the past five years' returns. For courageous, bullish Bitcoin enthusiasts, an adequately sized Riot Platforms stock investment will offer equal volatility and potential, thrills, and chills.
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