One of the biggest stories of the past month or so has been the remarkable rally in Bitcoin, the world’s biggest cryptocurrency. The cryptocurrency is nearing historic highs and that has had a knock-on effect on Bitcoin mining companies like Riot Blockchain (NASDAQ:RIOT) as well. Last week, the Riot Blockchain stock rallied strongly and gained as much as 50%. In such a situation, it could be a good idea for investors to take a closer look at it.

Bitcoin Fuelled Rally

The correlation between the rise in demand for Bitcoin and for Bitcoin mining services is not hard to see. Hence, it is quite clear that the surge in the Riot Blockchain is directly related to the Bitcoin rally.

In the past week, Bitcoin may have rallied by only 17% but at the same time, the Riot stock surged by 50%. The stock ended Friday at almost $6 a share but at one point it had surged to as much as $6.60 a share, a level that it had last hit in September 2018.

Riot blockchain had decided to make full use of its cryptocurrency mining resources back in 2018 and it seems that it was in the third quarter this year that it bore fruits. In Q3 2020, Riot Blockchain recorded its lowest losses per share since 2018.

In this regard, it is also necessary to point out that Riot Blockchain is going to continue to boost its mining capacity next year and beyond. Due to the current momentum in the crypto market, many of the mining companies may also be in with a chance of generating positive EBITDA in the near future.

New Appointment

While the Bitcoin rally has brought the Riot Blockchain stock into focus, it is also necessary to point out that the company made a key appointment to its board of directors last week.

The company announced that Hubert Marleau, who had earlier served as the listing committee director of the Toronto Stock Exchange, has been appointed to its board. It is a significant announcement from Riot Blockchain at the end of a week when its stock’s gains outpaced that of Bitcoin.

Marleau is going to bring a lot of inputs with regard to governance and regulatory standards. The company had been on the hunt for another director after Remo Mancini, a former member of the Canadian Cabinet departed from his position.

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