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Riot Stock Climbs Before Earnings as Traders Track a Growing Risk Pattern

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RIOT Stock Card

TLDR

  • Riot stock increased on Monday as the crypto market strengthened and traders prepared for earnings.
  • The share price reached $16.50 after recovering from an intraday low of $15.45.
  • Analysts expected Riot’s quarterly revenue to rise by 10 percent to $158 million.
  • The company previously reported $180 million in third-quarter revenue driven by mining operations.
  • Riot expanded into data colocation as Bitcoin remained in a technical bear trend.

Riot stock moved higher on Monday as the crypto market gained strength, and the move came as traders prepared for new earnings results. The action pointed to growing interest in the company.

Riot Stock Advances With Market Optimism Growing

Riot Platforms traded higher during Monday’s session, and the move lifted the share price to $16.50. The stock also bounced from an intraday low of $15.45, and it stayed 40% above its February floor.

The company kept a market capitalization near $6.14 billion, and the rally aligned with a wider jump in Bitcoin and altcoins. The crypto market showed steady demand on Monday, and traders watched the stock closely for new signals.


RIOT Stock Card
Riot Platforms, Inc., RIOT

Wall Street projected stronger results for the firm, and analysts expected quarterly revenue to rise by 10% to $158 million. Forecasts also placed annual revenue at $658 million, and the increase suggested steady demand for mining output.

The company posted $180 million in revenue in the previous quarter, and it reported $84 million during the same period in 2024. Mining revenue climbed from $67 million to $160 million, and engineering revenue rose from $12 million to $19 million.

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Riot Accelerates Data Shift Under Rising Pressure

The firm faced pressure as Bitcoin held a technical bear trend after a drop of over 40% from its peak. The crypto pullback influenced miners broadly, and the company worked to navigate a shifting environment.

The group expanded into data colocation to support new growth, and the sector saw rising investment from enterprise clients. This move created another income stream, and it aligned with the broader shift toward high-density compute facilities.

The company secured 200 acres in Texas for future sites, and the expansion supported long-term mining plans. The firm also signed a data center leasing agreement with AMD for 25 MW of IT capacity, and the partnership created new revenue options.

Pressure also increased from Starboard Value, and the group pushed for a faster transition toward data center operations. It urged the company to roll out more sites, and the approach targeted a stronger appeal to hyperscale clients.

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Peer firms such as IREN secured deals worth over $10 billion, and these agreements reflected growing demand for high-capacity compute services. Likewise, CoreWeave reported a backlog above $50 billion, and the scale showed how the sector continued to expand.

The company’s recent activity positioned it for future contracts, and traders monitored the pace of new developments. Riot stock continued to react to crypto prices, and Monday’s move reflected the latest market shift.

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Crypto World

Aave’s TVL Falls $8B After $293M Kelp DAO Hack

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Aave’s TVL Falls $8B After $293M Kelp DAO Hack

Total value locked on decentralized lending protocol Aave dropped by nearly $8 billion over the weekend after hackers behind the $293 million Kelp DAO exploit borrowed funds on Aave, leaving roughly $195 million in “bad debt” on the protocol and triggering withdrawals.

Data from DeFiLlama shows that Aave’s TVL fell from about $26.4 billion to $18.6 billion by Sunday, losing the top spot as the largest DeFi protocol. 

Aave v3’s lending pools for USDt (USDT) and USDC (USDC) are now at 100% utilization, meaning that more than $5.1 billion worth of stablecoins cannot be withdrawn until new liquidity arrives or borrows are repaid. 

$2,540 is available to be withdrawn from the $2.87 billion USDT pool on Aave v3 at the time of writing. Source: Aave

Aave’s TVL fall shows how rapidly risk from a single security incident can spread throughout the broader, interconnected DeFi lending market, potentially leading to a severe liquidity crisis.

The incident began on Saturday when hackers stole 116,500 Kelp DAO Restaked ETH (rsETH) tokens worth about $293 million from Kelp DAO’s LayerZero-powered bridge and used them as collateral on Aave v3 to borrow wrapped Ether (wETH).

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Crypto analytics platform Lookonchain said the move created about $195 million in “bad debt” on Aave, which contributed to the Aave (AAVE) token tanking nearly 20% from $112 on Saturday at 6:00 pm UTC to $89.5 about 25 hours later. 

Lookonchain noted that some of the largest crypto whales to withdraw funds from Aave were the MEXC crypto exchange and Abraxas Capital at $431 million and $392 million, respectively.

Source: Grvt

Several crypto networks and protocols tied to rsETH or the LayerZero bridge have paused use of the bridge until the problem is resolved, including DeFi platform Curve Finance, stablecoin issuer Ethena and BitGo’s Wrapped Bitcoin (WBTC).

Aave has frozen several rsETH, wETH markets

Shortly after the Kelp DAO exploit, Aave said it froze the rsETH markets on both Aave v3 and v4 to prevent any suspicious borrowing and later stated that rsETH on Ethereum mainnet remains fully backed by underlying assets.

WETH reserves also remain frozen on Ethereum, Arbitrum, Base, Mantle and Linea, Aave said.

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This incident marks the first significant stress test of Aave’s “Umbrella” security model, which was introduced in June 2025 to provide automated protection against protocol bad debt while enabling users to earn rewards.

Related: Aave DAO backs V4 mainnet plan in near-unanimous vote

Earlier this month, the Bank of Canada found that Aave avoided bad debt in its v3 market by using overcollateralization, automated liquidations and other strategies that shifted risk to borrowers.

In comments to Cointelegraph, Aave defended its liquidation-based model, framing it as a core safety mechanism that protects lenders while limiting downside for borrowers.

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It comes as Aave parted ways with its longest-standing DeFi risk service provider, Chaos Labs, on April 6, following disagreements over the direction of Aave v4 and budget constraints.

Magazine: Are DeFi devs liable for the illegal activity of others on their platforms?