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Experienced crypto investors have a saying: HODL. It is a play on the spelling of the word “Hold” but also an abbreviation for “Hold On for Dear Life”, which is a sentiment that characterizes the attitude of anyone capable of making the fortunes on offer in the crypto space. If you can’t stomach some ups and downs, you’re unlikely to end up with the pot of gold.
Volatility is part of the game because these are new frontiers of finance. While the digital currency revolution is extremely promising over the long term, anything that is new and unfamiliar to most market participants is bound to experience sudden and dramatic upheavals of doubt and uncertainty.
One such moment happened in late 2018 when Bitcoin fell by 50% in about 3 weeks. For those who sold in December at those low levels, it’s hard to imagine the psychological torture of seeing it 2,000% higher just two years later. And for those who bought into some of the stocks in the space during that same period, it’s hard not to imagine their joy.
Now, after a monumental run, we have another test of faith for the long-term HODLers, as BTC repeatedly tests the broad zone around $30k. The corrective move that started in April, but hit its stride in mid-May, has offered up some big discounts not only in coins but also in key stocks in the crypto space, and it’s likely to be another important opportunity for either regret or joy for some future set of imagined market participants.
This has big implications for stocks such as Riot Blockchain Inc (NASDAQ: RIOT), Coinbase Global Inc (NASDAQ: COIN), ISW Holdings (OTC US: ISWH), Marathon Patent Group Inc (NASDAQ: MARA), HIVE Blockchain Technologies Ltd (OTC US: HVBTF), and Grayscale Bitcoin Trust (OTC US: GBTC).
We take a closer look at a few of them here.
Riot Blockchain Inc (NASDAQ: RIOT) has become one of the most recognizable stocks in the crypto space, but shares have been sliding sharply of late. The company is expanding and upgrading its mining operations by securing the most energy-efficient miners currently available. The company also holds certain non-controlling investments in blockchain technology companies.
Riot is headquartered in Castle Rock, Colorado, and the company’s mining facility operates out of upstate New York, under a co-location hosting agreement with Coinmint.
Riot Blockchain Inc (NASDAQ: RIOT) recently announced its May production and operational updates, including its unaudited Bitcoin production for May 2021 and its latest miner delivery status.
In May 2021, Riot produced 227 BTC, an increase of approximately 220% over its May 2020 production of 71 BTC. Year to date through May 2021, the Company produced a total of 924 BTC, an increase of approximately 101% over its pre-halving BTC production during the same 2020 period of 460 BTC. As of May 31, 2021, Riot held approximately 2,000 BTC, all of which were produced by its mining operations.
While this is a clear factor, it has been incorporated into a trading tape characterized by a pretty dominant offer, which hasnt been the type of action RIOT shareholders really want to see. In total, over the past five days, shares of the stock have dropped by roughly -11% on above-average trading volume. All in all, not a particularly friendly tape, but one that may ultimately present some new opportunities. Shares of the stock have powered higher over the past month, rallying roughly 38% in that time on strong overall action.
Riot Blockchain Inc (NASDAQ: RIOT) pulled in sales of $23.2M in its last reported quarterly financials, representing top line growth of 872.2%. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($275.6M against $7.4M).
ISW Holdings (OTCMKTS: ISWH) ramped up its crypto operations last summer with its partnership with Bit5ive LLC, designing and…