Textbook Lesson: This Leveraged ETF Plunged 73% Since Inception – A Warning For Crypto Investors?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 03 2025
0mins
Should l Buy RIOT?
Source: Benzinga
Performance of RIOX ETF: The Defiance Daily Target 2X Long RIOT ETF (RIOX) has experienced a significant decline of 73% since its launch on January 2, primarily due to the volatility in the cryptocurrency market and a 30.4% drop in Riot Platforms Inc.'s stock price.
Risks of Leveraged ETFs: Leveraged ETFs like RIOX carry high risks and are designed for short-term trading by sophisticated investors; they can lead to substantial losses, especially during periods of market volatility, as evidenced by the recent performance of RIOX.
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Analyst Views on RIOT
Wall Street analysts forecast RIOT stock price to rise
9 Analyst Rating
9 Buy
0 Hold
0 Sell
Strong Buy
Current: 12.550
Low
20.00
Averages
27.00
High
42.00
Current: 12.550
Low
20.00
Averages
27.00
High
42.00
About RIOT
Riot Platforms, Inc. is a Bitcoin mining and digital infrastructure company. The Company has Bitcoin mining operations in central Texas and Kentucky, and electrical engineering and fabrication operations in Denver, Colorado, and Houston, Texas. It operates a Bitcoin-driven infrastructure platform. Its segments include Bitcoin Mining and Engineering. The Bitcoin Mining segment is engaged in Bitcoin mining activities. The Engineering segment designs and manufacturers power distribution equipment and custom engineered electrical products. This segment also provides electricity distribution product design, manufacturing, and installation services primarily focused on large-scale commercial and governmental customers and serves clients across a range of markets including data center, power generation, utility, water, industrial, and alternative energy. It is also focused on developing a portion of its power capacity for artificial intelligence (AI)/ high-performance computing (HPC) uses.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Riot Platforms Sells Over $250 Million in Bitcoin in Q1
- Bitcoin Sales Overview: Riot Platforms sold 3,778 Bitcoin in Q1 at an average price exceeding $76,000, totaling over $250 million, which reduced its holdings to 15,680 Bitcoin now valued at approximately $1.04 billion, indicating the company's strategic response to market fluctuations.
- Strategic Shift: The firm plans to utilize its nearly full power portfolio for high-demand data center infrastructure, with CEO Jason Les stating that this strategic evolution will significantly enhance shareholder value, demonstrating Riot's proactive adaptation to the rapid growth in the AI sector.
- Market Reaction: Although Riot's shares rose 2.47% on Thursday to $12.86, they have dipped over 33% in the past six months, reflecting the ongoing impact of Bitcoin price volatility on the company's stock performance.
- Investor Attention: Activist investor Starboard Value highlighted that Riot's AI opportunity could potentially boost the firm's valuation by $21 billion, emphasizing the urgency and growth potential in the AI space for the company.
See More
Bitcoin Miners Pivot to AI Amid Layoffs
- Strategic Shift: MARA Holdings is transitioning from a pure Bitcoin miner to an energy and digital infrastructure company, planning to lay off approximately 15% of its workforce to optimize resource allocation and adapt to new market demands.
- Layoff Impact: The layoffs affect multiple departments, with impacted employees receiving one month of paid leave and 13 weeks of severance pay, reflecting the company's relative care for its staff despite the industry's general lack of support.
- Bitcoin Sale: Between March 4 and March 25, MARA sold 15,133 BTC for approximately $1.1 billion, primarily using the proceeds to repurchase $1 billion of convertible senior notes, enhancing financial flexibility.
- Financial Pressure: MARA reported a staggering loss of approximately $1.7 billion in Q4 2025, with revenue declining 6% despite increased hashrate, highlighting the harsh economic conditions facing the mining industry.
See More
Riot Platforms Q1 2026 Bitcoin Production Update
- Bitcoin Production Decline: In Q1 2026, Riot produced 1,473 bitcoins, a 4% decrease from 1,530 in Q1 2025, indicating challenges in production efficiency that may impact future revenue performance.
- Significant Reduction in Holdings: As of quarter-end, the company held 215,680 bitcoins, down 18% from 319,223 a year earlier, reflecting a strategic response to market volatility that could affect the stability of its balance sheet.
- Sales Revenue Growth: In the first quarter, Riot sold 3,778 bitcoins, generating net proceeds of $289.5 million, demonstrating that despite production declines, the company can still achieve substantial cash flow through sales, enhancing its financial flexibility.
- Rising Power Costs: Although total power costs were 73.0 cents/kWh, down 21% year-over-year, overall operational efficiency fell to 220.2 J/TH, indicating pressure on cost control and resource utilization that may affect future profitability.
See More
Bitmine Immersion Technologies Stock Rises 8.09% Amid Market Rally
- Stock Price Surge: Bitmine Immersion Technologies saw its stock price rise by 8.09% to close at $19.78, benefiting from last week's Ethereum staking platform launch and a broader market rally, indicating the company's growth potential in the digital asset sector.
- Volume Spike: Today's trading volume reached 70.1 million shares, about 54% above the three-month average of 45.6 million shares, reflecting a significant increase in investor interest and potentially signaling improved market sentiment.
- Post-IPO Growth: Since its IPO last year, Bitmine's stock has surged 172%, despite a 27% decline year-to-date, showcasing the company's resilience and appeal in a volatile cryptocurrency market.
- Analyst Rating Upgrade: B. Riley raised Bitmine's price target from $30 to $33 while maintaining a “buy” rating, highlighting the launch of its Ethereum staking platform as a key growth driver for the future.
See More
Bitmine Immersion Technologies Rises 8.09% Following Market Rally
- Market Recovery: Bitmine Immersion Technologies' stock rose 8.09% to $19.78 on Tuesday, primarily driven by the launch of its staking platform last week and a broader market rally, indicating a rebound in investor confidence in digital assets.
- Surge in Trading Volume: The trading volume reached 70.1 million shares, about 54% above the three-month average of 45.6 million shares, reflecting a significant increase in market interest towards Bitmine, which may signal future investment opportunities.
- Analyst Rating Upgrade: B. Riley raised Bitmine's price target from $30 to $33 while maintaining a “buy” rating, highlighting the launch of its institutional Ethereum staking platform as a key growth driver, further bolstering market confidence.
- Holding Strategy Continues: Despite a 27% decline year-to-date, Bitmine has continued to increase its cryptocurrency holdings during the price slump, now holding nearly 4% of all circulating Ethereum, demonstrating its long-term bullish outlook on the market.
See More
Iren Shares Plummet Amid Bitcoin Price Decline
- Significant Stock Decline: Iren (IREN) closed at $31.62, down 9.89% on Monday, reflecting strong market reactions to falling Bitcoin prices and short-term negative factors, indicating the company's vulnerability in capital-intensive growth.
- Surge in Trading Volume: The company saw a trading volume of 41.3 million shares, nearly 7.8% above its three-month average, signaling heightened investor concern regarding its future profitability and funding visibility, which may impact investor confidence.
- AI Expansion Strategy Risks: Iren's aggressive AI GPU expansion strategy raises investor concerns; while the plan aims to meet rising AI infrastructure demand, the scale of investment increases uncertainty around the timeline for profitability and heightens dilution risks.
- Market Environment Pressure: The decline in Iren's stock price aligns with the performance of peers Riot Platforms and Mara Holdings, reflecting overall pressure in the data center and Bitcoin mining sectors, prompting investors to closely monitor how the company balances AI-related revenue growth with Bitcoin dependence.
See More
Riot Platforms Sells Over $250 Million in Bitcoin in Q1
- Bitcoin Sales Overview: Riot Platforms sold 3,778 Bitcoin in Q1 at an average price exceeding $76,000, totaling over $250 million, which reduced its holdings to 15,680 Bitcoin now valued at approximately $1.04 billion, indicating the company's strategic response to market fluctuations.
- Strategic Shift: The firm plans to utilize its nearly full power portfolio for high-demand data center infrastructure, with CEO Jason Les stating that this strategic evolution will significantly enhance shareholder value, demonstrating Riot's proactive adaptation to the rapid growth in the AI sector.
- Market Reaction: Although Riot's shares rose 2.47% on Thursday to $12.86, they have dipped over 33% in the past six months, reflecting the ongoing impact of Bitcoin price volatility on the company's stock performance.
- Investor Attention: Activist investor Starboard Value highlighted that Riot's AI opportunity could potentially boost the firm's valuation by $21 billion, emphasizing the urgency and growth potential in the AI space for the company.
See More
Bitcoin Miners Pivot to AI Amid Layoffs
- Strategic Shift: MARA Holdings is transitioning from a pure Bitcoin miner to an energy and digital infrastructure company, planning to lay off approximately 15% of its workforce to optimize resource allocation and adapt to new market demands.
- Layoff Impact: The layoffs affect multiple departments, with impacted employees receiving one month of paid leave and 13 weeks of severance pay, reflecting the company's relative care for its staff despite the industry's general lack of support.
- Bitcoin Sale: Between March 4 and March 25, MARA sold 15,133 BTC for approximately $1.1 billion, primarily using the proceeds to repurchase $1 billion of convertible senior notes, enhancing financial flexibility.
- Financial Pressure: MARA reported a staggering loss of approximately $1.7 billion in Q4 2025, with revenue declining 6% despite increased hashrate, highlighting the harsh economic conditions facing the mining industry.
See More
Riot Platforms Q1 2026 Bitcoin Production Update
- Bitcoin Production Decline: In Q1 2026, Riot produced 1,473 bitcoins, a 4% decrease from 1,530 in Q1 2025, indicating challenges in production efficiency that may impact future revenue performance.
- Significant Reduction in Holdings: As of quarter-end, the company held 215,680 bitcoins, down 18% from 319,223 a year earlier, reflecting a strategic response to market volatility that could affect the stability of its balance sheet.
- Sales Revenue Growth: In the first quarter, Riot sold 3,778 bitcoins, generating net proceeds of $289.5 million, demonstrating that despite production declines, the company can still achieve substantial cash flow through sales, enhancing its financial flexibility.
- Rising Power Costs: Although total power costs were 73.0 cents/kWh, down 21% year-over-year, overall operational efficiency fell to 220.2 J/TH, indicating pressure on cost control and resource utilization that may affect future profitability.
See More
Bitmine Immersion Technologies Stock Rises 8.09% Amid Market Rally
- Stock Price Surge: Bitmine Immersion Technologies saw its stock price rise by 8.09% to close at $19.78, benefiting from last week's Ethereum staking platform launch and a broader market rally, indicating the company's growth potential in the digital asset sector.
- Volume Spike: Today's trading volume reached 70.1 million shares, about 54% above the three-month average of 45.6 million shares, reflecting a significant increase in investor interest and potentially signaling improved market sentiment.
- Post-IPO Growth: Since its IPO last year, Bitmine's stock has surged 172%, despite a 27% decline year-to-date, showcasing the company's resilience and appeal in a volatile cryptocurrency market.
- Analyst Rating Upgrade: B. Riley raised Bitmine's price target from $30 to $33 while maintaining a “buy” rating, highlighting the launch of its Ethereum staking platform as a key growth driver for the future.
See More
Bitmine Immersion Technologies Rises 8.09% Following Market Rally
- Market Recovery: Bitmine Immersion Technologies' stock rose 8.09% to $19.78 on Tuesday, primarily driven by the launch of its staking platform last week and a broader market rally, indicating a rebound in investor confidence in digital assets.
- Surge in Trading Volume: The trading volume reached 70.1 million shares, about 54% above the three-month average of 45.6 million shares, reflecting a significant increase in market interest towards Bitmine, which may signal future investment opportunities.
- Analyst Rating Upgrade: B. Riley raised Bitmine's price target from $30 to $33 while maintaining a “buy” rating, highlighting the launch of its institutional Ethereum staking platform as a key growth driver, further bolstering market confidence.
- Holding Strategy Continues: Despite a 27% decline year-to-date, Bitmine has continued to increase its cryptocurrency holdings during the price slump, now holding nearly 4% of all circulating Ethereum, demonstrating its long-term bullish outlook on the market.
See More
Iren Shares Plummet Amid Bitcoin Price Decline
- Significant Stock Decline: Iren (IREN) closed at $31.62, down 9.89% on Monday, reflecting strong market reactions to falling Bitcoin prices and short-term negative factors, indicating the company's vulnerability in capital-intensive growth.
- Surge in Trading Volume: The company saw a trading volume of 41.3 million shares, nearly 7.8% above its three-month average, signaling heightened investor concern regarding its future profitability and funding visibility, which may impact investor confidence.
- AI Expansion Strategy Risks: Iren's aggressive AI GPU expansion strategy raises investor concerns; while the plan aims to meet rising AI infrastructure demand, the scale of investment increases uncertainty around the timeline for profitability and heightens dilution risks.
- Market Environment Pressure: The decline in Iren's stock price aligns with the performance of peers Riot Platforms and Mara Holdings, reflecting overall pressure in the data center and Bitcoin mining sectors, prompting investors to closely monitor how the company balances AI-related revenue growth with Bitcoin dependence.
See More
