Riot Blockchain announces the sale of crypto exchange

Riot Blockchain announces the sale of crypto exchange

  • Ali Raza
  • 21st February, 11:19
  • Riot blockchain announces that it will let go of its RiotX crypto exchange.
  • The company will double down on crypto mining, and leverages XMS Capital Partners as an investment advisor.
  • A key focus will be given on Mining Bitcoin.

Riot Blockchain, a company known for its crypto mining and its crypto exchange, RiotX, has recently made a big announcement. As per the statement, having come on Thursday, the company has started to consider divestment options when it comes to the assets of its crypto exchange. The official reasoning behind it is threefold: The substantial security risks, the regulatory environment, as well as the sheer competition in that sector. The exchange only managed to live about two years, having been launched in early 2018.

Riot Blockchain explained through the statement that it was going to double down on its crypto mining sector. In order to properly do that, it will cease the development of its US-based crypto exchange.

Bringing In Investment Experts

As it stands now, the company has brought in XMS Capital Partners, an investment bank situated in Chicago, to help and advise with various strategic deals. Furthermore, the firm will help Riot search for new growth opportunities in the maturing crypto market.

The news comes shortly after it’s been made public that Riot was expanding its mining operations within Oklahoma City. The company, based in Colorado, had installed 1,060 new Antminer S17 Pros. The Antminer models come from Bitmain, and the company had announced the latest move over a week ago, on the 11th of February.

Boosting BTC Mining By 240%

In the past, the company managed to deploy 3,000 of the same model Antminer machines back in January. The company announced back in December that it would acquire 4,000 mining machines from Bitmain, in exchange for a hefty $6.35 million.  With the latest additions to the mining operations, Riot is expecting a 240% increase in its computing power for Bitcoin mining in particular.

While Riot does, in fact, dedicate various amounts of hashing power to a range of cryptocurrencies, with things like Bitcoin Cash and Litecoin naming a few, it has one primary focus: Bitcoin. The company has said that it will prioritize Bitcoin mining in particular, as time goes on.

As one would imagine, Investor sentiment has taken a bit of a downturn since the announcement. Riot stocks have dropped about 5.33%, or about $1.42, at the market close on the 20th of February. This comes shortly after the announcement to double down on mining, and the data itself was garnered through Yahoo Finance.

By Ali Raza
A journalist, with experience in web journalism and marketing. Ali holds a master's degree in finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of cryptocurrency publications. Raza is the co-founder of 5Gist.com, too, a site dedicated to educating people on 5G technology.

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