- NASDAQ:RIOT dropped 15.36% on Wednesday as growth stocks were hit hard once again.
- Noted short seller Citron Research dismantles Riot in a scathing report.
- Crypto miner stocks took a hit as Coinbase makes its Wall Street debut.
NASDAQ:RIOT has had an incredible run as a sympathy play to the surging price of Bitcoin and Ethereum, and has returned over 5,000% to investors over the past 52-weeks. On Wednesday, the wheels started to fall off as Riot fell by over 15% to close the choppy trading session at $50.16. The drop took Riot back below its 50-day moving average as the stock is now 36% off of its 52-week high price of $79.50 set in late February.
Stay up to speed with hot stocks' news!
Despite announcing that it would no longer be writing short reports, noted short seller Citron Research was back at it with a scathing assessment of Riot’s business. Citron tweeted that Riot was better off buying Bitcoin rather than mining it, after the company has repeatedly raised capital to deploy into its mining infrastructure during the past year. By Citron’s calculations, purchasing actual Bitcoin would have given Riot 26 times more Bitcoin than the amount they have mined, and that investors looking to get into cryptos should just buy Bitcoin itself rather than buying shares of Riot. Citron ended the attack with a $2 price target for Riot, although the stock actually went up following the report which may show that after the Reddit short squeeze, Citron may not have the influence it once had.
RIOT Stock news
Riot wasn’t the only stock getting hit hard on Wednesday following the debut of crypto exchange Coinbase (NASDAQ:COIN). Marathon Digital Holdings (NASDAQ:MARA) was down 15.75%, Bitcoin miner maker Canaan (NASDAQ:CAN) was down 7.12% and noted Bitcoin holder MicroStrategy Incorporated (NASDAQ:MSTR) was down 13.32%. Even fintech giant Square (NYSE:SQ) who has notable influence on Bitcoin via its Cash App fell 5.43% as investors booked gains from these stocks to put towards buying Coinbase shares.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD: The constructive outlook persists for now
AUD/USD gave away part of its recent strong rally and flirted with the 0.6850 region on the back of the firm performance of the US Dollar as well as the persistent risk-off mood in response to increasing geopolitical jitters.
EUR/USD: the 1.1000 region is expected to hold the downside
EUR/USD retreated for the third consecutive session on turnaround Tuesday, this time on the back of further gains in the Greenback and the generalized offered stance in the risk-linked universe.
Gold looks firm around $2,670 on Israel-Iran crisis
Gold prices maintain their bullish bias around the $2,670 region per ounce troy on the back of increasing tension in the Middle East after Iran launched a missile attack on Israel.
Bitcoin dips below $63,000 amid neutral traders' sentiment shown by on-chain metrics
Bitcoin (BTC) extends correction and trades below $63,000 at the time of writing on Tuesday, approaching a key support level after dipping more than 3% the previous day.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.