Riot Blockchain stock plunges 20% following parabolic rally

Cryptocurrency mining company Riot Blockchain (RIOT) shares plunged on Tuesday, pulling back part of the parabolic rally that was largely driven by news of a significant increase in hash rate capacity.

The RIOT fell 20.4% to close at $ 62.03 on Thursday, but was moving slightly higher in post-close trade. At current values, the RIOT has a total market cap of $ 4.2 billion, making it one of the largest in the blockchain industry.

The sharp decline comes on the heels of more than doubling in prices between February 10 and February 17. The week-long rally saw the RIOT peak below $ 78.00 before falling on Thursday.

Since the start of the month, Riot’s share price has increased by a whopping 202%.

The 6-month RIOT track shows a strong bullish trend for the stock. Chart via TradingView

RIOT kicked off its most recent rise in parabola shortly after the company announced that it expected to achieve a 1.06 hash capacity per second with the deployment of 2,002 S19 Pro Antminers.

On February 11, CEO Jason Lees said:

While we are proud of this achievement, we consider it to be a successful completion of just one of many of our plans for continued growth. Riot continues to receive and deploy the next generation of Bitmain miners and remains on schedule to more than triple its current capacity by the fourth quarter of 2021. ‘

Just a few weeks ago, the company said it plans to achieve a 3.8-per-second hash capacity by the end of 2021.

When Cointelegraph last covered Riot Blockchain in November 2020, the stock was trading at $ 6, after rising 500% over the year. At the time, the Colorado-based company had appointed Hubert Marlow, former director of the Toronto Stock Exchange Listing Committee, to Riot’s board of directors.