Over $2 trillion in value has being added to this nearly $3 trillion market in 2021 as deep-pocketed institutional investors begin to deploy capital into this ambiguous asset class.
RIOT, which is closely tied to the performance of bitcoin, had initially overshot the crypto rally in the first month and a half of the year as momentum chasing traders such as the drove this leading miner’s shares far above their intrinsic value.
RIOT has fallen so far out of favor with the markets as of late that it has come down to a P/E of less than 20x despite analysts estimating an over 60% increase in 2022 profits and a growth outlook that continues to accerlate.
12 months ago, China controlled roughly 70% of the global bitcoin mining market, which is measured using hash rates.
The US is now the leading bitcoin miner by hash rate, controlling over 35% of this market, according to Cambridge Bitcoin Electricity Consumption Index .
Riot’s savvy management team is projecting its hash rate will reach 4.4 EH/s before this year is up and reach 7.7 EH/s by the end of 2022.
ProShares Bitcoin Strategy ETF BITO became the first bitcoin futures-backed ETF to trade in the US, and its premiere performance was outstanding, with inflows of nearly $2 billion in its first two days of trading.
The one primary issue surrounding this conduit for bitcoin exposure is that futures contracts will need to be continuously rolled over to the front-month contract, which will cost money and cause decay to the ETF’s value regarding bitcoin over time.
Nevertheless, this SEC approval is a massive step towards legitimizing the crypto space, gaining unprecedented market traction in recent years.
Elon Musk is the most notable character voicing concerns about the use of fossil fuels to power digital asset mining operations, deciding to halt Tesla’s TSLA bitcoin usage earlier this year because of it.
Riot’s primary operations are in Texas, ironically one of the cleanest and cheapest energy states powers one of the few deregulated energy markets with a vast competitive push towards inexpensive and sustainable sources.
Like it or not, bitcoin is here to stay, and it’s time to get some portfolio exposure, if you haven’t already.
RIOT has a significant competitive advantage in a market where scale means everything, with its recent acquisition of Whinstone leapfrogging its hash rate expansion.