$Riot Platforms (RIOT.US)$ not exactly tracking with $Bitcoi...
$Riot Platforms(RIOT.US$ not exactly tracking with $Bitcoin(BTC.CC$ , but also could be a discount if we are patient
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Looking to retire by 2040 and live off my investment income.
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egan1 : Yeah I'm actually short riot. most people don't really get the mining business and just view investing in them as a bet on Bitcoin. Even during the bull market of 2019 when block rewards were higher RIOT lost money. mostly due to depreciation of their miners. Once a new generation of ASICs hit the market your old ones are uncompetitive and are thus worth a lot less. this means any profits you make are completely offset by the cost of the new ASICs you have to buy every 2-6 quarters to stay competitive. It's all laid out in their balance sheet but for some reason they never mention depreciation and amortization in their earnings calls. this is goin to continue to get worse as block rewards are 1/2d.
SnakeMan OP egan1 : Sounds like you currently have the correct angle. I hope long term that my investments pay off though
SpyderCall egan1 : good point.
SpyderCall : but the market moves irrationally all of the time. I believe that the Bitcoin hype will drive these miners higher as long as the crypto market is ripping. But when the crypto market is underperforming, then these miners take an even bigger hit and perform even worse than their correlated assets in the crypto markets.