Shares of bitcoin-mining company Riot Blockchain (NASDAQ:RIOT) continued their decline on Thursday because the price of bitcoin keeps falling. As of 3 p.m. EST, Riot Blockchain stock was down 10%. And over the past 24 hours, the price of bitcoin has fallen 8%, according to CoinDesk.
Riot Blockchain mines bitcoin to generate revenue. By providing its own computing power to the bitcoin blockchain network, transactions are processed and the whole system functions. Of course, if your business is paid in bitcoin tokens, it’s not good when the price of bitcoin goes down. That’s why investors are dumping Riot Blockchain stock today.
Although Riot Blockchain stock is now down around 30% from previous highs, I don’t think long-term shareholders are complaining. The stock is still up over 1,200% over the past year, crushing the performance of bitcoin and the stock market.
Earlier this week, Riot Blockchain issued a press release that I believe is a timely reminder for any investor with intentions of holding for the long term. The company had previously announced that it ordered new equipment. But it finally received and deployed 2,500 Bitmain S19 Pro Antminers this week.
Combined with what it already had, Riot Blockchain now has 9,540 Antminers mining bitcoin. But