Riot Blockchain (RIOT)
Poor Riot Blockchain, AKA Biopix—the guy who showed up too early to the party. Sure, shares of RIOT are up 200% since mid-November, when the company changed its name and announced it was no longer a diagnostic medical device company, but a something-to-do-with-Bitcoin company, but that’s small potatoes compared to the bump received by companies that made the same entirely legitimate business choice in December, when after Bitcoin mania had turned to full-on frenzy. Now, the company seems to have given the Street too much time to ask questions such as “how will you make money?” The company’s preposterous answer? Mining. Why preposterous? Because everyone who mines makes money at the same ratio of money in (spent on computer power) to money out. That’s the worst sort of business competition—the sort where the only companies that survive are the ones that can tolerate the thinnest margins. Let’s hope they at least get some solar panels, as the energy likely to be wasted in this endeavor is not a riot, but a shame.
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