{"id":2483,"date":"2024-06-08T10:12:25","date_gmt":"2024-06-08T10:12:25","guid":{"rendered":"https:\/\/cryptd.in\/riot-stock-rebounds-strongly-shrugging-off-short-sellers-report\/"},"modified":"2024-06-08T10:12:25","modified_gmt":"2024-06-08T10:12:25","slug":"riot-stock-rebounds-strongly-shrugging-off-short-sellers-report","status":"publish","type":"post","link":"https:\/\/cryptd.in\/lt\/riot-stock-rebounds-strongly-shrugging-off-short-sellers-report\/","title":{"rendered":"Riot Stock Rebounds Strongly, Shrugging Off Short Seller\u2019s Report"},"content":{"rendered":"

Riot shares experienced a recovery on June 5 following a report from short seller Kerrisdale Capital.<\/p>\n

The paper, released just before the Nasdaq opened, accused Riot of mismanagement and predicted the firm\u2019s impending collapse, stating that Bitcoin miners are selling \u201csnake oil.\u201d<\/p>\n

Kerrisdale \u2018Declares War\u2019 on Bitcoin Miners<\/h2>\n

Kerrisdale\u2019s June 5 ataskaita<\/a> said that RIOT was more proficient in \u201cplaying energy arbitrage games and issuing stock\u201d than generating value for shareholders through crypto mining. The firm emphasized this point in an accompanying post on X, declaring a \u201cwar against bitcoin miners,\u201d who they likened to \u201csnake oil salesmen,\u201d accusing them of burning through investor capital and contributing to environmental degradation.<\/p>\n

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)<\/p>\n

\u2014 Kerrisdale Capital (TradFi) (@KerrisdaleCap) June 5, 2024<\/a><\/p>\n\n

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\u2019s stock, traded on the Nasdaq under the ticker RIOT, has risen<\/a> to $10.31 on Friday opening.<\/p>\n

Kerrisdale\u2019s 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\u2019s outstanding shares have increased sixfold, a tactic Kerrisdale argues is unsustainable and damaging to shareholder value.<\/p>\n

\u201cIf Riot were to stop issuing stock, it would be forced to start drawing down on its cash and Bitcoin holdings,\u201d 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.<\/p>\n

Despite all it has spent on facilities & equipment, $RIOT<\/a>\u2018s BTC production per share and BTC hodl per share have declined. The only way shareholders ever benefit is if bitcoin prices go up \u2013 which is a terrible way to invest in bitcoin given the availability of low-fee ETFs 7\/10<\/p>\n

\u2014 Kerrisdale Capital (TradFi) (@KerrisdaleCap) June 5, 2024<\/a><\/p>\n\n

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). \u201cWhy 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?\u201d Kerrisdale asked.<\/p>\n

Valuation Collapse<\/h2>\n

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.<\/p>\n

Kerrisdale highlighted RIOT\u2019s 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.<\/p>\n

$RIOT\u2019s 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<\/a> & its peers 10\/10<\/p>\n

\u2014 Kerrisdale Capital (TradFi) (@KerrisdaleCap) June 5, 2024<\/a><\/p>\n\n

This isn\u2019t the first time Kerrisdale has targeted companies in the cryptocurrency space. Earlier, the firm bashed MicroStrategy, advocating<\/a> for investments in spot Bitcoin ETFs over holding shares in BTC-holding firms like MSTR.<\/p>\n

Prane\u0161imas Riot Stock Rebounds Strongly, Shrugging Off Short Seller\u2019s Report<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

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\u2019s impending collapse, stating that Bitcoin miners are selling \u201csnake oil.\u201d Kerrisdale \u2018Declares War\u2019 on Bitcoin Miners Kerrisdale\u2019s June 5 report said that RIOT […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2483","post","type-post","status-publish","format-standard","hentry","category-feeds"],"yoast_head":"\nRiot Stock Rebounds Strongly, Shrugging Off Short Seller\u2019s Report - cryptd.in<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptd.in\/lt\/riot-stock-rebounds-strongly-shrugging-off-short-sellers-report\/\" \/>\n<meta property=\"og:locale\" content=\"lt_LT\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Riot Stock Rebounds Strongly, Shrugging Off Short Seller\u2019s Report - cryptd.in\" \/>\n<meta property=\"og:description\" content=\"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\u2019s impending collapse, stating that Bitcoin miners are selling \u201csnake oil.\u201d Kerrisdale \u2018Declares War\u2019 on Bitcoin Miners Kerrisdale\u2019s June 5 report said that RIOT […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptd.in\/lt\/riot-stock-rebounds-strongly-shrugging-off-short-sellers-report\/\" \/>\n<meta property=\"og:site_name\" content=\"cryptd.in\" \/>\n<meta property=\"article:published_time\" content=\"2024-06-08T10:12:25+00:00\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"3 minut\u0117s\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/cryptd.in\\\/riot-stock-rebounds-strongly-shrugging-off-short-sellers-report\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/cryptd.in\\\/riot-stock-rebounds-strongly-shrugging-off-short-sellers-report\\\/\"},\"author\":{\"name\":\"\",\"@id\":\"\"},\"headline\":\"Riot Stock Rebounds Strongly, Shrugging Off Short Seller\u2019s Report\",\"datePublished\":\"2024-06-08T10:12:25+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/cryptd.in\\\/riot-stock-rebounds-strongly-shrugging-off-short-sellers-report\\\/\"},\"wordCount\":607,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/cryptd.in\\\/#organization\"},\"articleSection\":[\"Feeds\"],\"inLanguage\":\"lt-LT\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/cryptd.in\\\/riot-stock-rebounds-strongly-shrugging-off-short-sellers-report\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/cryptd.in\\\/riot-stock-rebounds-strongly-shrugging-off-short-sellers-report\\\/\",\"url\":\"https:\\\/\\\/cryptd.in\\\/riot-stock-rebounds-strongly-shrugging-off-short-sellers-report\\\/\",\"name\":\"Riot Stock Rebounds Strongly, Shrugging Off Short Seller\u2019s Report - cryptd.in\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/cryptd.in\\\/#website\"},\"datePublished\":\"2024-06-08T10:12:25+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/cryptd.in\\\/riot-stock-rebounds-strongly-shrugging-off-short-sellers-report\\\/#breadcrumb\"},\"inLanguage\":\"lt-LT\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/cryptd.in\\\/riot-stock-rebounds-strongly-shrugging-off-short-sellers-report\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/cryptd.in\\\/riot-stock-rebounds-strongly-shrugging-off-short-sellers-report\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/cryptd.in\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Riot Stock Rebounds Strongly, Shrugging Off Short Seller\u2019s Report\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/cryptd.in\\\/#website\",\"url\":\"https:\\\/\\\/cryptd.in\\\/\",\"name\":\"cryptd.in\",\"description\":\"Alternative LinkedIn for Crypto-friendly Talents\",\"publisher\":{\"@id\":\"https:\\\/\\\/cryptd.in\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/cryptd.in\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"lt-LT\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/cryptd.in\\\/#organization\",\"name\":\"cryptd.in\",\"url\":\"https:\\\/\\\/cryptd.in\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"lt-LT\",\"@id\":\"https:\\\/\\\/cryptd.in\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/cryptd.in\\\/wp-content\\\/uploads\\\/2024\\\/05\\\/cryptdin_logo.jpg\",\"contentUrl\":\"https:\\\/\\\/cryptd.in\\\/wp-content\\\/uploads\\\/2024\\\/05\\\/cryptdin_logo.jpg\",\"width\":900,\"height\":900,\"caption\":\"cryptd.in\"},\"image\":{\"@id\":\"https:\\\/\\\/cryptd.in\\\/#\\\/schema\\\/logo\\\/image\\\/\"}}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Riot Stock Rebounds Strongly, Shrugging Off Short Seller\u2019s Report - cryptd.in","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/cryptd.in\/lt\/riot-stock-rebounds-strongly-shrugging-off-short-sellers-report\/","og_locale":"lt_LT","og_type":"article","og_title":"Riot Stock Rebounds Strongly, Shrugging Off Short Seller\u2019s Report - cryptd.in","og_description":"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\u2019s impending collapse, stating that Bitcoin miners are selling \u201csnake oil.\u201d Kerrisdale \u2018Declares War\u2019 on Bitcoin Miners Kerrisdale\u2019s June 5 report said that RIOT […]","og_url":"https:\/\/cryptd.in\/lt\/riot-stock-rebounds-strongly-shrugging-off-short-sellers-report\/","og_site_name":"cryptd.in","article_published_time":"2024-06-08T10:12:25+00:00","twitter_card":"summary_large_image","twitter_misc":{"Est. reading time":"3 minut\u0117s"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/cryptd.in\/riot-stock-rebounds-strongly-shrugging-off-short-sellers-report\/#article","isPartOf":{"@id":"https:\/\/cryptd.in\/riot-stock-rebounds-strongly-shrugging-off-short-sellers-report\/"},"author":{"name":"","@id":""},"headline":"Riot Stock Rebounds Strongly, Shrugging Off Short Seller\u2019s Report","datePublished":"2024-06-08T10:12:25+00:00","mainEntityOfPage":{"@id":"https:\/\/cryptd.in\/riot-stock-rebounds-strongly-shrugging-off-short-sellers-report\/"},"wordCount":607,"commentCount":0,"publisher":{"@id":"https:\/\/cryptd.in\/#organization"},"articleSection":["Feeds"],"inLanguage":"lt-LT","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/cryptd.in\/riot-stock-rebounds-strongly-shrugging-off-short-sellers-report\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/cryptd.in\/riot-stock-rebounds-strongly-shrugging-off-short-sellers-report\/","url":"https:\/\/cryptd.in\/riot-stock-rebounds-strongly-shrugging-off-short-sellers-report\/","name":"Riot Stock Rebounds Strongly, Shrugging Off Short Seller\u2019s Report - cryptd.in","isPartOf":{"@id":"https:\/\/cryptd.in\/#website"},"datePublished":"2024-06-08T10:12:25+00:00","breadcrumb":{"@id":"https:\/\/cryptd.in\/riot-stock-rebounds-strongly-shrugging-off-short-sellers-report\/#breadcrumb"},"inLanguage":"lt-LT","potentialAction":[{"@type":"ReadAction","target":["https:\/\/cryptd.in\/riot-stock-rebounds-strongly-shrugging-off-short-sellers-report\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/cryptd.in\/riot-stock-rebounds-strongly-shrugging-off-short-sellers-report\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/cryptd.in\/"},{"@type":"ListItem","position":2,"name":"Riot Stock Rebounds Strongly, Shrugging Off Short Seller\u2019s Report"}]},{"@type":"WebSite","@id":"https:\/\/cryptd.in\/#website","url":"https:\/\/cryptd.in\/","name":"cryptd.in","description":"Alternatyvus \"LinkedIn\", skirtas kriptografiniams talentams","publisher":{"@id":"https:\/\/cryptd.in\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/cryptd.in\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"lt-LT"},{"@type":"Organization","@id":"https:\/\/cryptd.in\/#organization","name":"cryptd.in","url":"https:\/\/cryptd.in\/","logo":{"@type":"ImageObject","inLanguage":"lt-LT","@id":"https:\/\/cryptd.in\/#\/schema\/logo\/image\/","url":"https:\/\/cryptd.in\/wp-content\/uploads\/2024\/05\/cryptdin_logo.jpg","contentUrl":"https:\/\/cryptd.in\/wp-content\/uploads\/2024\/05\/cryptdin_logo.jpg","width":900,"height":900,"caption":"cryptd.in"},"image":{"@id":"https:\/\/cryptd.in\/#\/schema\/logo\/image\/"}}]}},"_links":{"self":[{"href":"https:\/\/cryptd.in\/lt\/wp-json\/wp\/v2\/posts\/2483","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptd.in\/lt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptd.in\/lt\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptd.in\/lt\/wp-json\/wp\/v2\/comments?post=2483"}],"version-history":[{"count":0,"href":"https:\/\/cryptd.in\/lt\/wp-json\/wp\/v2\/posts\/2483\/revisions"}],"wp:attachment":[{"href":"https:\/\/cryptd.in\/lt\/wp-json\/wp\/v2\/media?parent=2483"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptd.in\/lt\/wp-json\/wp\/v2\/categories?post=2483"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptd.in\/lt\/wp-json\/wp\/v2\/tags?post=2483"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}