cryptd.in

암호화폐 친화적인 인재를 위한 대체 링크드인

Riot Stock Rebounds Strongly, Shrugging Off Short Seller’s Report

-

by

in

Riot shares experienced a recovery on June 5 following a report from short seller Kerrisdale Capital.

The paper, released just before the Nasdaq opened, accused Riot of mismanagement and predicted the firm’s impending collapse, stating that Bitcoin miners are selling “snake oil.”

Kerrisdale ‘Declares War’ on Bitcoin Miners

Kerrisdale’s June 5 보고 said that RIOT was more proficient in “playing energy arbitrage games and issuing stock” than generating value for shareholders through crypto mining. The firm emphasized this point in an accompanying post on X, declaring a “war against bitcoin miners,” who they likened to “snake oil salesmen,” accusing them of burning through investor capital and contributing to environmental degradation.

Today, we launch a war against bitcoin miners, an industry of snake oil salesmen that are incinerating both investor capital and the environment and should be banished from America much like the Chinese RTO frauds that we helped kick out a decade ago (1/10)

— Kerrisdale Capital (TradFi) (@KerrisdaleCap) June 5, 2024

Reacting to the report, RIOT shares initially plummeted by 9.6% before staging a recovery to close down by 0.21% at $9.65. As of the time of writing, Riot’s stock, traded on the Nasdaq under the ticker RIOT, has risen to $10.31 on Friday opening.

Kerrisdale’s report accuses Riot of operating on a business model that burns cash and relies heavily on diluting retail shareholders through continuous stock issuance. Since 2020, Riot’s outstanding shares have increased sixfold, a tactic Kerrisdale argues is unsustainable and damaging to shareholder value.

“If Riot were to stop issuing stock, it would be forced to start drawing down on its cash and Bitcoin holdings,” the report noted. Kerrisdale further pointed out that Riot is facing several challenges, including increased regulatory scrutiny in Texas, reduced revenues due to the Bitcoin halving, and stiff competition from more cost-efficient global miners.

Despite all it has spent on facilities & equipment, $RIOT‘s BTC production per share and BTC hodl per share have declined. The only way shareholders ever benefit is if bitcoin prices go up – which is a terrible way to invest in bitcoin given the availability of low-fee ETFs 7/10

— Kerrisdale Capital (TradFi) (@KerrisdaleCap) June 5, 2024

The report also questioned the value of investing in Bitcoin mining companies like Riot compared to directly owning BTC or investing in low-fee exchange-traded funds (ETFs). “Why own shares in a company like Riot, which has seen Bitcoin holdings per share and Bitcoin production per share steadily decline, versus simply owning Bitcoin itself?” Kerrisdale asked.

Valuation Collapse

The aggressive stance continued on X, where Kerrisdale detailed their strategy and shared two letters addressed to Texas state officials. They also labeled Bitcoin mining as a capital-intensive, competitive, and regulatory-challenged industry, arguing against investing in such companies as BTC proxies.

Kerrisdale highlighted RIOT’s struggle to compete globally in cost-effective mining, its poor financial performance, and reliance on incentives and tax credits under scrutiny. They concluded by warning of an impending valuation collapse for RIOT and peers amid increasing regulatory pressure and business model skepticism.

$RIOT’s inability to grow bitcoin+cash on a per share basis undermines the sole reason to own a miner vs bitcoin. As local, state & federal regulatory pressure increases & investors recognize the futility of these biz models, valuations will collapse for $RIOT & its peers 10/10

— Kerrisdale Capital (TradFi) (@KerrisdaleCap) June 5, 2024

This isn’t the first time Kerrisdale has targeted companies in the cryptocurrency space. Earlier, the firm bashed MicroStrategy, advocating for investments in spot Bitcoin ETFs over holding shares in BTC-holding firms like MSTR.

게시물 Riot Stock Rebounds Strongly, Shrugging Off Short Seller’s Report 에 처음 등장 크립토포테이토.

댓글

답글 남기기

이메일 주소는 공개되지 않습니다. 필수 필드는 *로 표시됩니다

최신 피드

인기 카테고리

ko_KR 한국어
ko_KR 한국어 en_US English ro_RO Română et Eesti ja 日本語 ru_RU Русский de_DE Deutsch es_ES Español zh_CN 简体中文 fr_FR Français zh_TW 繁體中文 pt_PT Português it_IT Italiano pl_PL Polski tr_TR Türkçe nl_NL Nederlands id_ID Bahasa Indonesia el Ελληνικά uk Українська bg_BG Български cs_CZ Čeština fi Suomi hu_HU Magyar lv Latviešu valoda lt_LT Lietuvių kalba nb_NO Norsk bokmål sk_SK Slovenčina sl_SI Slovenščina sv_SE Svenska

웹사이트 검색

인기 스토리

태그

#AlexeyPertsev (1) #BidenCryptoBan (1) #BidenElection (1) #BinanceVsCoinbase (1) #B비트코인 (398) #BitcoinETF (3) #B비트코인기초 (1) #B비트코인 취급 (1) #B비트코인가격 (5) #B비트코인가격수준 (1) #B비트코인펌프 (1) #B비트코인예치 (1) #B비트코인서지 (1) #BitcoinTop (1) #Bitfinex (1) #B비트 단위 (1) #브레이스브리지캐피털 (1) #BRC20토큰 (1) #BTC취득 (1) #B울리스틱 예측 (1) #BullishSentiment (1) #C중국광업 (1) #CPIP리뷰 (1) #CryptoAsset (2) #CryptoBattle (1) #CryptoBoom (1) #CryptoExpert (1) #CryptoInsights (1) #CryptoMania (1) #CryptoMarket (4) #CryptoPrediction (1) #CryptoPredictions (1) #CryptoRegulation (2) #CryptoTakeoff (1) #CryptoTiming (1) #CryptoTips (1) #CryptoTreasury (1) #CryptoUncertainty (1) #DerivativeJump (1) #Dogecoin (71) #DogecoinGains (1) #DogecoinVolume (1) #DutchCourt (2) #ECommerce (1) 1TP5테엘살바도르비트코인 (1) 1TP5테더리움 (65) 1TP5테더리움통증 (1) 1TP5테더리움가격 (1) 1TP5전문가 의견 (1) #FedRateCut (1) #FiatCurrency (1) #FinancialImpact (1) #FinancialPrivacy (1) #FirmShutdown (1) #FrozenAccounts (1) #IllicitFunds (1) #인플레이션데이터 (1) #투자 (1) #투자손실 (1) #일본기업 (1) #LegalAction (1) #LegalImpact (1) #법률 (1) #라이트닝 네트워크 (1) 1TP5시장분석 (3) 1TP5시장 모니터링 (1) 1TP5시장 예측 (1) 1TP5시장 예측 (1) #MarketProjection (1) 1TP5마켓지원 (1) 1TP5시장변동성 (1) #M결혼 (1) #MemeCoin (5) #MemeCoins (2) #M광부수익성 (1) #MoneyLaundering (2) #MtGox (4) 1TP5북한암호화 (1) 1TP5노보그라츠예측 (1) #P가격 마일스톤 (1) #P가격 예측 (2) #P가격 질문 (1) #PriceSurge (1) #P형량 (1) #QuantAnalysis (1) 1TP5규제압력 (1) #SEC안티크립토 (1) #ShibaInu (5) #SocialBuzz (1) 1TP5기술분석 (1) #Toncoin (3) #TornadoCash (3) #TornadoCashDev (1) 1TP5토네이도캐시개발자 (1) #UKCrypto (1) #업사이드 잠재력 (1) #USCongress (1) #와이오밍랜드 (1) #XRP가격 (1) #XRP업스윙 (1)

유용한 링크

유용하다고 생각되어 공유하고 싶은 링크.