- Stock of RIOT Platforms, formerly known as RIOT Blockchain rose by 14% yesterday.
- RIOT behaved like a regular cryptocurrency, moving in a similar direction with Bitcoin but at a faster rate.
- Despite rebranding, RIOT Platforms’ businesses remain centered around Bitcoin.
Bitcoin mining firm formerly known as RIOT Blockchain had its stocks rallying yesterday after inflation figures were released in the United States. RIOT was among the top gainers as the stock climbed by more than 14% before the close of the trading session. It moved in tandem, albeit at a faster rate, with the crypto industry’s flagship asset, Bitcoin.
RIOT rallied faster than Bitcoin, adding as much as 14.52% in value. Bitcoin only climbed by 3.78%. That is typical behavior of smaller digital assets in the crypto industry during such rallies, including company stocks and altcoins. They often move in the same direction as Bitcoin but can be more volatile, owing to their smaller volumes and market capitalization.
RIOT Blockchain was rebranded to RIOT Platforms earlier this year to reflect the company’s new business direction. RIOT Platforms plans to diversify into other businesses while maintaining its status as a Bitcoin mining company. Diversification for RIOT became necessary after suffering a heavy loss in the past year. Its market capitalization dropped by 85%.
In an announcement, the company noted that business operations remain Bitcoin-driven, however, in an increasingly diversified manner. RIOT Platforms will not excommunicate from the crypto industry. Instead, it will add other related services that will boost its operations. Therefore, it is expected that its stocks will continue to trail Bitcoin, as observed.
Stocks rallied on Thursday after the United States consumer inflation figures were released. According to the data, the U.S. CPI dropped for the sixth consecutive month, with an annual increase of 6.5%. Analysts interpreted this as an opportunity for the Federal Reserve to slow down its interest rate hikes. Chris Beauchamp, chief market analyst at online trading platform IG noted that the Feds will be impressed by the numbers showing that the inflation outlook is improving.