As the price of the leading cryptocurrency Bitcoin [BTC] continues surging toward record highs, bitcoin mining firms ride their coattails.
Shares of the publicly traded Bitcoin [BTC, +2.49%] mining firm Riot Blockchain rose 50% in the week, trading hands slightly below $6 USD at week’s end. Bitcoin gained nearly 17% over the same period of time.
Riot shares surged even higher in early hours Friday, reaching $6.60 USD, a level not seen since earlier September 2018.
As reported earlier, the Castle Rock, Colo.-based firm posted its lowest per-share loss in Q3 since the firm completely deployed its cryptocurrency mining infrastructure, over 2 years ago.
Public mining firms like Riot that emphasize their bitcoin reserves have seen strong positive reactions from the market, added Ethan Vera, co-founder of Seattle-based firm Luxor Technology. “Businesses that liquidate to fiat a day didn’t see as strong of gains,” he added.
Riot continues to outperform bitcoin via 2020, with investors enjoying a 390% year-to-date return compared to bitcoin’s 168% gain.
The firm plans to continue expanding its already aggressively growing mining capacity throughout 2021 and beyond, reporting a 450% hike in hash power for Q3 over the same period of time earlier in 2019, reaching 556 PH/s.
“With the present market momentum many of the mining firms who haven’t broken a profit will likely report positive EBITDA heading into 2021,” Vera added.