EXCLUSIVE: Riot Blockchain CEO Says 'Depending on your power cost and machine efficiency, some miners will be uneconomic and will be forced to shut off, decreasing network hash rate by at least 5% and possibly more depending on the trend for BTC prices'
Portfolio Pulse from Benzinga Newsdesk
Riot Blockchain CEO predicts that due to varying power costs and machine efficiency, some miners will become uneconomic, leading to a potential decrease in the network hash rate by at least 5%, with further reductions possible depending on Bitcoin price trends.
April 09, 2024 | 6:47 pm
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Riot Blockchain's CEO's statement about potential decreases in network hash rate due to uneconomic mining operations could signal challenges for the company, especially if it is among those affected by high power costs and machine inefficiency.
The CEO's statement directly impacts Riot Blockchain's operations and stock price as it suggests potential operational challenges. If RIOT's mining operations are among those affected by high power costs and inefficiency, it could lead to decreased profitability and a negative perception among investors, likely causing a short-term decrease in stock price.
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