Riot Blockchain Coronavirus risks can best be understood from its annual Form 10-K filed with the U.S. Securities and Exchange Commission. The cryptocurrency mining firm, Riot Blockchain, is listed on Nasdaq and traded actively by crypto fans. The ongoing COVID-19 market turmoil is beginning to show its long-term impact on financial entities.
In its annual Form 10-K, Riot Blockchain has mentioned COVID-19 fallout as a significant risk factor. It has blamed the coronavirus for potential disruptions in its business operations. The form mentions that the cryptocurrency mining business will be severely affected for the upcoming months.
Form 10-K entails that the company must mention any potential risk factors that can adversely impact its business. Riot Blockchain has indicated the adverse effect of the coronavirus on various categories and sections of the company. Primarily, it will face cryptocurrency risks due to heightened market volatility.
The mining firm states that COVID-19 will have a profound impact on macroeconomic activity across the globe. Also, the coronavirus outbreak will cause significant disruptions in the company’s supplier network, mining equipment operation, and mining activities. Quarantines, movement restrictions, prohibition on goods movement, international supply chain disruptions, work from home, and self-isolation guidelines are some of the factors that will lead to loss of business activity. There are six regular employees and three consultants at Riot Blockchain.
Riot Blockchain coronavirus risks will be extensive. The third-party associates, supply chain partners, and maintenance issues can severely dent operations. Spare parts replacement can become a serious concern in the coming months. The firm recently acquired 4,000 Antminer Pro rigs. The report further mentions that prolonged lockdowns can result in significant loss of operational performance. Most countries do not designate cryptocurrencies as essential services. Thus, Riot Blockchain COVID-19 damages can get serious in the next few months.