Riot Blockchain Inc (NASDAQ: RIOT) is having a strong day in the market today, and for good reason. The company announced the establishment of a new subsidiary, leading to excitement among investors and sending the stock toward the top. Today, we’ll talk about the new subsidiary, what we’re seeing from the stock, and what we’ll be watching for with regard to RIOT ahead.
RIOT Gains On Establishment Of Subsidiary
As mentioned above, Riot Blockchain is having a strong day in the market today after issuing a press release announcing the establishment of a subsidiary. Early this morning, the company announced that it has established Digital Green Energy Corp as a wholly-owned subsidiary.
In the release, RIOT said that the purpose of the company is to explore international infrastructure opportunities. Ultimately, the company intends to identify environmentally friendly projects with large energy capacity and a cost-efficient rate for cryptocurrency mining and data center operations.
RIOT also said that Daniel Stefan Robertsen has been appointed as President of the new subsidiary. Mr. Robertsen will begin his role in the company on January 24, 2018. In a statement, John O’Rourke, Chairman and CEO of RIOT, had the following to offer:
“We believe green energy infrastructure will continue to be in strong demand and we aim to position Riot accordingly… Securing access to a meaningful amount of reliable energy at a low cost will be Digital Green Energy’s focus moving forward. Mr. Robertsen has expertise building and managing data center operations for companies including Facebook and Bitfury. He will be instrumental in building and expanding our energy infrastructure for efficient cryptocurrency mining and data center operations.”
What We’re Seeing From The Stock
At the end of the day, we know that the news moves the market, and the news of a new subsidiary that could become a strong revenue stream is definitely positive. As a result, we’re seeing strong movement in the value of Riot Blockchain today. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (12:20), RIOT is trading at $24.84 per share after a gain of $1.42 per share (6.06%) 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 story surrounding the new subsidiary and excited to learn more about what the company will be doing. 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!