With “the Bitcoin halving” quick approaching, increasingly corporations are shifting their focus to Bitcoin mining.
Riot Blockchain, a Nasdaq-listed crypto mining and funding firm, introduced on Thursday that will probably be realigning its enterprise technique this 12 months. The corporate plans to dump its cryptocurrency trade RiotX and as an alternative goal its efforts virtually completely on Bitcoin mining. Riot cited modifications within the “regulatory atmosphere” and “cybersecurity dangers” as causes for ceasing the trade.
As a part of the announcement, Riot stated it has partnered with monetary providers agency XMS Capital Companions to assist it “navigate the dynamic bitcoin panorama and advise the Firm on potential strategic transactions in bitcoin mining associated operations.” Riot had additionally beforehand labored on mining different cryptocurrencies like Bitcoin Money (BCH) and Litecoin (LTC).
Following the announcement, Riot’s inventory dropped as a lot as 5 p.c. It has since recovered considerably, at present buying and selling for round $1.41 per share—although it’s nonetheless down greater than 13 p.c during the last 5 days.
Riot Blockchain didn’t instantly reply to Decrypt’s request for remark.
The timing of Riot’s realignment is probably going not coincidental, with the Bitcoin halving set to happen someday in Might. The halving refers to dam mining rewards from the Bitcoin community reducing from 12.5 to six.25 bitcoins. Whereas hardly unanimous, many market analysts imagine the halving may lead to a rise in Bitcoin’s worth.
Riot introduced earlier this month that it’s increasing its Bitcoin mining facility in Oklahoma Metropolis, which homes crypto mining gear from Chinese language mining large Bitmain. The corporate additionally not too long ago escaped a lawsuit from the US Securities and Trade Fee (SEC), which was investigating the corporate after it had pivoted from biotech to crypto in 2018.
This newest announcement is a part of a rising pattern of blockchain corporations specializing in Bitcoin mining within the American Midwest. Yesterday, Peter Thiel-backed Layer 1 opened a Bitcoin mining facility in Texas. Northern Knowledge AG and Whinstone US are additionally constructing a Bitcoin mining facility and datacenter within the state. And final 12 months, Bitmain opened a Bitcoin mining farm in Rockdale, Texas.
Because the halving attracts nearer, what number of extra corporations will shift their consideration to the aggressive Bitcoin mining trade?