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RIOT stock gained nearly 1,500% in 2020, handily outpacing the 314% gains made by bitcoin during the same period. On Dec. 21, the company said it would spend $35 million to acquire more mining capacity, known as Bitmain Antminers, bringing its equipment to approximately 37,000 miners.
RIOT finances its new miner purchases through available working capital and does not have any long-term debt.
There was a lot of skepticism when the company shifted from a biotechnology company to a digital currency miner back in 2017. However, it now boasts a market cap of $1.15 billion, up from approximately $27 million a year ago.
Sales are expected to grow 412.5% next year. That may seem ambitious. However, this is a company that has beat analyst estimates in five of the last six quarters. RIOT is forecasting profitability next year and will play a significant role in maintaining bitcoin’s network.