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Riot Platforms Sees Positive Momentum Amidst Cryptocurrency Surge: What’s Next?

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Written by Matt Monaco Reviewed by Jack Kellogg Fact-checked by Tim Sykes
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Riot Platforms Inc.’s stock is influenced by recent articles highlighting its strategic expansion in the renewable energy sector and robust financial performance. On Wednesday, Riot Platforms Inc.’s stocks have been trading up by 8.3 percent.

Latest Developments

  • Bouncing back with Bitcoin leading the charge, cryptocurrencies such as Bitcoin briefly crossed the monumental $100,000 threshold, providing a wave of optimism to digital asset-focused companies. Amidst this surge, Riot Platforms and others closely linked to Bitcoin’s fluctuations witnessed significant gains.

Candlestick Chart

Live Update At 11:37:07 EST: On Wednesday, January 15, 2025 Riot Platforms Inc. stock [NASDAQ: RIOT] is trending up by 8.3%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

  • Keefe Bruyette & Woods has given Riot Platforms an ‘Outperform’ rating, setting a target price of $17. This favorable outlook aligns with the current market enthusiasm, underscoring a positive sentiment within the trading community.

  • December’s mining operations for Riot Platforms have been marked by productivity gains, with a reported increase from the previous month, reflecting a 4% boost in bitcoin mining. This productivity bump showcases effective capacity utilization within their operations.

Financial Insights and Earnings Overview

When traders first enter the world of trading, they often have the misconception that success means winning every trade. However, experienced traders understand the importance of risk management and the bigger picture. As millionaire penny stock trader and teacher Tim Sykes says, “The goal is not to win every trade but to protect your capital and keep moving forward.” This mindset helps traders persevere through losses and remain focused on consistent growth rather than short-term success.

Riot Platforms reeled under a mix of highs and lows in recent financial recordings. On one hand, there’s been a remarkable 155% growth in their operational hash rate over the past year, blowing past the network’s 52% growth, yet the numbers aren’t all gold. Despite clocking in 4,828 in mined bitcoins, profitability margins present a contrasting narrative.

Let’s delve a bit deeper here. The financial documents we gaze upon highlight a negative EBIT margin of -120.5%, a frightening ebitdamargin of -58.4%, alongside a pre-tax profit margin spiraling downwards to -42.4%. While their gross margin rests slightly on the positive threshold at 26.1%, these ratios underscore the pressing need to address operational costs and optimize efficiencies.

More Breaking News

Their financial reports further disclose a net common stock issuance of $214.1M amid concurrent capital expenses valued at $75M. In essence, the surges in Bitcoin levels amplify tangible assets at Riot Platforms, yet overall operational costs siphon significant resources, warranting attention to fiscal control across the board.

What the Numbers Are Saying

When numbers leap off the page, they’re often shouting something rather significant. Over recent trading days, Riot’s market value danced around these wild Bitcoin rides. Noticeably, January started with Riot’s share price jumping from $10.46 to $12.34 on Jan 3, 2025, echoing Bitcoin’s uptrend. Most certainly, equities tied to digital currencies reflect immediate market movements, painting Riot’s status as a vivid mirror of soaring crypto enthusiasm.

Consider too, trading volumes and positioning scores significantly boosted from the Defiance ETFs intent to amplify exposure to Riot Platforms with a freshly-launched 2x Long ETF. This strategic move effectively doubles daily exposure potential, endorsed by favorable analyst perspectives that afford Riot Platforms noteworthy recognition today.

Understanding the Market Impact

News oscillations, such as promising ratings and summer bitcoin rallies, steer Riot stakeholders’ expectations. Per Keefe Bruyette & Woods, Riot Platforms emerges favorably with an ‘Outperform’ tag despite inherent trading volatility. This underscores a pragmatic view, accepting fluctuations characteristic of a trading environment deeply woven into digital currencies like Bitcoin.

Market resilience is key. Amidst the backdrop of fluctuating profit margins and growing operating expenses, the resilience Riot Platforms demonstrates via strategic maneuvers like increased hash rates is commendable. The culmination of these diverse insights paints a refreshing, albeit challenging, picture of their evolving position within the trading sector.

Conclusion and Future Perspectives

Riot Platforms teeters along a fine edge balancing volatile digital currency landscapes with strategic trading expansions. While operating incomes presently waver, pivotal endorsements and recent industry alignment showcase Riot as a potentially blooming asset. Vigilant monitoring of Bitcoin sentiments and operational advances will undoubtedly remain vital navigating through the highs and lows. As millionaire penny stock trader and teacher Tim Sykes says, “It’s better to go home at zero than to go home in the red.” This sentiment resonates as traders weigh the risks and rewards in the ever-fluctuating market.

In conclusion, traders and observers alike should keep a sharp eye on Riot’s navigations around Bitcoin booms and strategic ETF alignments. As Bitcoin and its associated assets ripple across the market, Riot Platforms will likely reflect these currents. The path is tenuous but lined with opportunities for those attuned to its complexities. Carefully tread into the storm, catching glimpses of growth amidst the swirling undertones of cryptocurrency chronicles.

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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”