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Last weekend, crypto enthusiasts prepared for 2024 Bitcoin (BTC USD) Halving. The long-awaited event has come and gone and so far Bitcoin prices have not really suffered. On the contrary, BTC is in the green by more than 4% in the last five days. This was an excellent development for crypto mining stocks, most of which also posted impressive growth last week. But Riot Platforms (NASDAQ:REVOLT) is a special highlight.
RIOT stock is up more than 44% in the last five days and is once again on a steady rise today. As shares continue to rise amid rising short interest, speculation is also growing that RIOT could be primed for a massive short squeeze.
How likely is Riot Platforms to experience a short squeeze due to interest in crypto stocks caused by the Bitcoin halving? Let's take a closer look.
Is there a short squeeze in RIOT stock?
This isn't the first time this year that a short squeeze on RIOT stock has appeared possible. In late January, Riot Platforms and its peers began rising after outflows from a key BTC exchange-traded fund (ETF) “slowed.” As InvestorPlace contributor Larry Ramer reported, Riot appeared to be a possible candidate for a short-covering rally because a high percentage of shares were sold short at the time.
Things may be looking better for Bitcoin this time, but short interest in RIOT stock is definitely increasing. According to Fintel, short selling accounts for more than 13% of RIOT stock's free float. Short sellers have 1.54 days to cover their positions. Finally, there are approximately 600,000 shares of RIOT available for short sale as of this writing – down from 700,000 shares this morning.
It's also worth noting that interest in RIOT stock has also increased on social media. According to ApeWisdom, mentions and mentioning users have increased by more than 280% in the last 24 hours. Upvotes are even higher – by more than 500% – while sentiment towards Riot is at 75%.
Part of the momentum driving RIOT higher is definitely due to the Bitcoin halving. But short interest in the stock is increasing and retail traders seem to be taking notice. As long as these trends continue, a short squeeze in RIOT stock remains entirely possible.
At the time of publication, Samuel O'Brient did not hold, directly or indirectly, any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com's publication policies.
Samuel O'Brient is a reporter for InvestorPlace, where his work focuses primarily on financial markets, global economic trends and public policy. O'Brient writes a weekly column on breaking political news that investors should keep an eye on.
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