10 Worst Falling Stocks To Buy Now

5. Riot Blockchain, Inc. (NASDAQ:RIOT)

Number of Hedge Fund Holders In Q2 2024: 12

Short Interest % of Shares Outstanding: 16.52

YTD Share Price Loss: 51.14%

Riot Blockchain, Inc. (NASDAQ:RIOT) is a Bitcoin mining company based in Castle Rock, Colorado. The firm has been at the center of news coverage in form or another in 2024. Riot Blockchain, Inc. (NASDAQ:RIOT) made a big announcement in May when it announced an acquisition offer for Bitfarm. The team aimed to make the firm the biggest Bitcoin miner in the world with a power capacity of 1.5 GW and a hash rate of 52 EH/s. However, Bitfarm rejected the offer, but ongoing negotiations led to the two announcing an agreement in September that saw a Bitfarm founder step down and Riot Blockchain, Inc. (NASDAQ:RIOT) agreed to withdraw its requisition. The stock has suffered this year also due to the impact of a short seller report in June which accused the firm of burning cash. Cash is important for the firm as it is targeting aggressive expansion by ordering more than 60,000 miners and setting up substations with more than 100MW of capacity. Riot Blockchain, Inc. (NASDAQ:RIOT)’s 400MW substation also suffered from a delay earlier this year, and these moves have stemmed from its revenue dropping because of Bitcoin’s halving in 2024.

During its Q2 2024 earnings call, Riot Blockchain, Inc. (NASDAQ:RIOT)’s management shared how it’s navigating through a tough environment:

“However, driven by the significant growth in our hash rate capacity expected through the remainder of the year, we anticipate producing more Bitcoin per day by the end of 2024 than we did in the first quarter of 2024, halving non-withstanding. Riot ended the second quarter of 2024 with 9,334 Bitcoin, an increase of 28% relative to the 7,265 Bitcoin that we held at the end of the second quarter of 2023. Riot continued to retain 100% of all Bitcoin produced in the second quarter. In the second quarter of 2024, Riot reported total revenue of $70 million as compared to $76.7 million for the second quarter of 2023, a 9% decrease year-over-year. This decrease was primarily driven by lower revenue at the company’s engineering division. During the quarter, Riot reclassified third-party hosting revenues and costs into other from Bitcoin mining, as previously reported in the first quarter of 2024.”