Hailing from the state of Colorado, Riot Blockchain (NASDAQ:RIOT) is one of the most well-known and respected miners of Bitcoin (CCC:BTC-USD). Some folks might actually use RIOT stock as a Bitcoin replacement in their stock-trading accounts.
Indeed, the company seems to encourage the use of its shares as a crypto proxy. Riot Blockchain’s investor presentation asserts that the company serves “as a public vehicle for investors seeking exposure to Bitcoin.”
Furthermore, Riot Blockchain proudly possesses North America’s largest Bitcoin-mining facility. Spanning 100 acres in Rockdale, Texas, this facility has a total cryptocurrency-mining capacity of 750 megawatts.
Clearly, this is a company that is out to dominate its chosen niche market. As we’ll see, Riot Blockchain is still an innovator in crypto-mining technology, while the company also exhibits an astounding top-line fiscal growth rate.
RIOT Stock at a Glance
In February of this year, the RIOT stock buyers came out in full force, pushing the share price up to a 52-week high of $79.50. That’s quite a rally, considering the stock had been trading at $18 just a couple of weeks earlier. However, at that time, the market wasn’t prepared to sustain a run-up of this magnitude.
By May, RIOT stock had retraced to around $25. Yet, this turned out to be a strong support level, as well as a great buy price.
From May through October, the stock gently came down to $25 numerous times. Still, the sellers weren’t able to break through that price floor with any conviction.
As of late November, RIOT stock was hovering near $35. That’s certainly closer to the support level ($25) than the prior peak (around $80).
Buying near the bottom of a defined range can be a profitable strategy. So, it’s possible to start accumulating this stock at the current price and adding a few more shares if it declines to $30 and then $25.
The Numbers Don’t Lie
If you’re not quite convinced that Riot Blockchain deserves its reputation as an industry leader, feel free to check out the company’s third-quarter 2021 financial results. Everybody’s entitled to an opinion, but the facts are what they are. And the fact is, Riot Blockchain posted quadruple-digit year-over-year revenue growth, to the tune of 2,532%. For a dollar figure, the Riot Blockchain’s quarterly revenues totaled $64.8 million, which is a record for the company.
Ready for another four-digit growth stat? During 2021’s third quarter, Riot Blockchain increased its mining revenues by 2,099%, generating a record $53.6 million.
Thus, the doubters will have to accept that Riot Blockchain raked in remarkable revenues during those three months. Not only that, but Riot Blockchain also ramped up its crypto-mining pace. Specifically, the company increased its Bitcoin production year-over-year by 482%, to a record 1,292 BTC.
Keeping It Cool
In recent months, Riot Blockchain has demonstrated that it’s not only a revenue generator, but also a crypto-mining innovator.
Not long ago, Riot Blockchain announced the development of 200 megawatts of “immersion-cooling technology” at its Whinstone facility. Riot believes it is the industry’s first industrial-scale deployment of this kind.
But what is immersion cooling? It’s a technique in which Bitcoin-mining equipment is “submerged in a specialized fluid, which is circulated to keep the … integrated circuits operating at lower temperatures.” When the equipment is immersion-cooled, it can operate in a more stable environment and be more productive.
“Based on industry data and the Company’s own preliminary immersion-cooling test results, an estimated 25% increase in hash rate is expected” to result from this immersion-cooling process, according to Riot Blockchain.
The Takeaway on RIOT Stock
Top-of-the-line equipment, powerful revenue growth, and an ambitious spirit make Riot Blockchain an eminent leader in Bitcoin mining today.
The company’s stock shares aren’t necessarily a perfect Bitcoin replacement. However, they do offer exposure to the crypto-mining industry.
Besides, RIOT stock has moved much higher this year, and could stage another rally as the company continues to thrive and innovate.
RIOT gets a rating of “B” in my Portfolio Grader.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
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