According to Odaily, Riot Platforms, a publicly-traded Bitcoin mining company, experienced a significant drop in its stock price on Wednesday, underperforming compared to its peers. The decline, which exceeded 6%, made Riot one of the worst-performing cryptocurrency-related stocks of the day.
This downturn came after Kerrisdale Capital, a well-known short-selling institution, announced its decision to short Riot's stock while going long on Bitcoin (BTC). The representative of Riot Platforms did not immediately respond to a request for comment on the situation.
It's worth noting that short selling is a strategy used by investors who believe that a company's stock price will decline. They borrow shares of the stock and sell them, with the intention of buying them back at a lower price in the future, thus profiting from the difference. In this case, Kerrisdale Capital is betting on a decrease in Riot's stock price while simultaneously expecting an increase in the value of Bitcoin.