- The stock price of Riot Blockchain Inc (NASDAQ: RIOT) decreased by 16.18%. This is why it happened.
The stock price of cryptocurrency mining operation company Riot Blockchain Inc (NASDAQ: RIOT) decreased by 16.18%. Investors responded negatively to a couple of catalysts.
The first catalyst seems to be the drop in Bitcoin prices. As of yesterday morning, the price of Bitcoin was trading at between $56,000 and $57,000 and then it fell to between $50,000 and $51,000 as of 9:15 PM ET today. The drop in Bitcoin was largely due to Tesla backtracking on the option to buy its electric vehicles using the cryptocurrency.
Another catalyst that drove the stock price down seems to be a deal that Riot Blockchain made with Mogo. Mogo — a digital payments and financial technology company — announced it is intending to increase its ownership position in Coinsquare Ltd., which is Canada’s leading digital asset trading platform through the acquisition of an additional 5.4 million common shares of the company. The purchase will be made in 2 separate transactions:
1) The exercising of Mogo’s call option on 3.2 million Coinsquare common shares from existing Coinsquare shareholders under the investment agreement between Mogo (MOGO), Coinsquare and certain shareholders of Coinsquare dated February 10, 2021 and
2) The purchase of 2.2 million common shares of Coinsquare from Riot Blockchain pursuant to a binding term sheet entered by the parties on May 12, 2021.
The purchase consideration for the Coinsquare shares to be acquired under the 2 transactions is expected to range between $46.9 million and $48.6 million, payable, at Mogo’s option, in cash or common shares. And the acquisition from Riot is expected to complete in late May 2021 and the option exercise is expected to complete in early June 2021.
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.