Riot Blockchain, Inc (NASDAQ: RIOT) is having an overwhelmingly strong day in the market today, and for good reason. The company announced that it would be taking part in a private placement. Of course, this led to excitement among investors, sending the stock screaming upward. Today, we’ll talk about the news, what we’re seeing from RIOT, and what we’ll be watching for ahead.
RIOT Gains On Participation In Private Placement
As mentioned above, Riot Blockchain is having an overwhelmingly strong start to the trading session this morning after announcing that it has invested an additional CAD $3.4 million in a private placement. The placement is one of its portfolio holdings, known as goNumerical Ltd, doing business as Coinsquare.
According to the release, the investment is part of a CAD $30 million financing at a total post-money valuation of $430 million. RIOT also announced that it has exercised its previously acquired warrants at a CAD $94 million valuation. As a result of the latest investment and warrant exercises, the company now owns about 12.5% of Coinsquare. In a statement, John O’Rourke, Chairman and CEO at RIOT, had the following to offer:
Coinsquare continues its rapid growth and execution while positioning itself as the leading digital currency exchange in Canada… We believe that Coinsquare offers the most compelling platform to transact in digital currencies in Canada. They will play a key role in advising Riot Blockchain on its efforts to establish a transparent and compliant United States-based digital currency exchange.
What We’re Seeing From The Stock
As investors and traders, one of the first lessons that we learn is that it’s important to keep a close eye on the news. After all, the news moves the market. In this particular case, the news released by Riot Blockchain proved to be overwhelmingly positive. So, it’s no surprise to see that the stock is making a run for the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:04), RIOT is trading at $15.22 per share after a gain of $0.91 per share or 6.32% thus far today.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on RIOT. In particular, we’re interested in following the company’s ongoing work to launch a cryptocurrency exchange in the United States. We’re also interested in watching as the investment in Coinsquare pays off. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!