Riot Blockchain is Mining Bitcoin Cash and Automatically Converting it into Bitcoin
Originally published on: BTCMANAGER
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April 30, 2018
Riot is a Colorado-based blockchain tech company that recently came public with its 2017 financial report. In fact, the company revealed that from now on it will turn its financial results reports public.
Riot is a Nasdaq-listed firm that has invested a lot in mining. The company reported to have 3,500 Bitmain S9 miners stationed at a mining center in Oklahoma City and is looking to acquire a lot more to have at least 8000 of this equipment’s running until the end of May.
According to the report, the company is mining bitcoin cash (BCH) but exchanges it for bitcoin (BTC) on a regular basis. The mining of BCH is undertaken because the company feels it is more profitable to mine bitcoin cash than bitcoin, even though they do not support BCH.
The company reports that last March alone it mined around 69 BTC and 44 BCH, worth about $700,000 at the time of writing.
Riot Company stated:
“When fully deployed, Riot expects its presently owned hashing power to be over 110 Petahash, which it believes would rank the Company among the largest publicly listed cryptocurrency mining operations.”
The company is also the owner of around 12.9 percent stake of Coinsquare, the most popular cryptocurrency exchange in Canada. Riot Blockchain recently invested C$430 million ($334.8 million) in the Canadian exchange in upgrading its platform. Later in 2018, the company is planning to list its shares on the Toronto Stock Exchange. Apart from that, Riot recently acquired a stake in Logical Brokerage Corp., an established futures brokerage company. The firm is a member of the National Futures Association (NFA) and is registered with the Commodity Futures Trading Commission (CFTC).
Riot Research to Launch Cryptocurrency Exchange
Riot Blockchain is studying the possibility of launching its own cryptocurrency exchange.
Even after the new acquisition, Riot Blockchain shares have not been gaining any value and are pretty undervalued right now, as many of the cryptocurrency assets. The reasons pointing to the company’s shares decline is news that Riot might lose its place on the Nasdaq exchange. Delisting would inevitably send the shares to be traded in over-the-counter (OTC) markets which do not have the volume and liquidity of normal exchanges.
Nasdaq, already sent out a warning to the company for breaking its rules and even threatened to delist the firm. The warning evidently hurt the company’s share prices. Another issue that might affect Riot Blockchain is that the Securities and Exchange Commission (SEC) recently subpoenaed the company for suddenly switching from the biotech sector to the cryptocurrency industry.
Riot Blockchain also reports it was not able to go through its 2017 annual shareholders meeting but already planned to have this year’s conference at its mining facility on May 9.
Riot Blockchain is set to increase its mining operations and see its profits go up, however, while the company is still under the SEC radar its shares might be deeply affected.