Momentum

Bitcoin

<ul>
 <li><strong>Bitcoin recovered 4.15% on November 4, with short liquidations intensifying the rebound after the U.S. midterm elections.</strong></li>
 <li><strong>Riot sold 20,264 BTC during the first nine months of 2026, redirecting capital toward AI infrastructure.</strong></li>
 <li><strong>RSI has recovered above 50, while MACD remains negative, leaving Bitcoin’s daily trend reversal unconfirmed.</strong></li>
</ul>
<p>Bitcoin rebounded above $80,000 on Wednesday as leveraged short positions were liquidated, while Riot Platforms’ third-quarter earnings revealed how one of the largest publicly traded miners is financing its expansion into artificial intelligence infrastructure.</p>
<p>At the time of writing BTC rose 4.15% to $80,549.65. The recovery followed a decline to $75,600.64 and coincided with approximately $306 million in the leading cryptocurrency short liquidations over the past 24 hours, <strong><a href="https://www.coinglass.com/liquidations" rel="noopener noreferrer nofollow">according to the information from CoinGlass</a></strong>.</p>
<p>Riot’s results point to a different development. The company has been selling accumulated Bitcoin to finance power and data-center assets intended to generate contractual revenue, rather than relying exclusively on mining economics.</p>
<h2 id="riot-s-bitcoin-treasury-funds-a-28-billion-ai-expansion">Riot’s Bitcoin Treasury Funds a $28 Billion AI Expansion</h2>
<p>Riot sold 10,599 BTC during the third quarter, compared with production of 1,637 BTC. Its sales exceeded newly mined coins by approximately 6.5 times, demonstrating that the company was drawing down existing reserves rather than merely monetizing production.</p>
<p>Across the first nine months of 2026, sales totaled 20,264 BTC and generated approximately $1.5 billion.</p>
<p>The proceeds helped fund infrastructure development and repay Riot’s $200 million Coinbase credit facility, releasing pledged collateral.</p>
<p>Its remaining Bitcoin holdings fell to 2,418 BTC at September 30 from 11,380 BTC at the end of June, a reduction of nearly 79%.</p>
<p>The capital is supporting a major expansion at Riot’s Corsicana campus in Texas.</p>
<p>Under a 15-year triple-net powered-land lease with an unnamed AI laboratory, Riot plans to deliver 910 megawatts of critical IT capacity. The agreement has approximately $28 billion in initial contracted revenue, potentially increasing to $54 billion if extension options are exercised.</p>
<p>Those figures represent revenue over the contractual period, not cash received upfront.</p>
<p><strong><a href="https://www.sec.gov/Archives/edgar/data/1167419/000110465926122368/riot-20261029x8k.htm" rel="noopener noreferrer nofollow">According to Riot’s SEC-filed earnings presentation</a></strong>, the project is expected to require approximately $5.5 billion in development spending.</p>
<p>The company’s illustrative financing structure includes $4.4 billion to $4.9 billion in non-recourse project debt, leaving approximately $500 million to $1.1 billion in cash-equity requirements under that scenario.</p>
<p>That financing is not equivalent to fully committed funding. Construction costs, borrowing terms and delivery schedules remain important determinants of the project’s ultimate return.</p>
<h2 id="the-financial-trade-off-behind-riot-s-strategy">The Financial Trade-Off Behind Riot’s Strategy</h2>
<p>Bitcoin mining exposes Riot to cryptocurrency prices, network difficulty and the cost of operating specialized hardware.</p>
<p>Its AI lease shifts part of that exposure toward infrastructure delivery and tenant credit risk. The tenant is responsible for operating computing equipment and reimbursing electricity costs, while Riot must provide the contracted powered infrastructure.</p>
<p>The difference is visible in the projected economics.</p>
<div style="width: 100%; max-width: 660px; margin: 20px auto; font-family: Arial,Helvetica,sans-serif; color: #263442;">
 <div style="padding: 14px 12px; background: #edf4f0; border-top: 4px solid #267c69;">
  <div style="font-size: 16px; font-weight: bold; line-height: 1.4;">
   Riot’s Changing Business Economics
  </div>
  <div style="font-size: 12px; color: #5c6d67; margin-top: 4px;">
   Mining operations versus Corsicana AI infrastructure
  </div>
 </div>
 <table style="width: 100%; border-collapse: collapse; table-layout: fixed; font-size: 12px; line-height: 1.5; margin: 0;">
  <thead>
   <tr style="background: #294b46; color: #ffffff;">
    <th style="width: 25%; padding: 10px 6px; text-align: left;" scope="col">Metric</th>
    <th style="width: 36%; padding: 10px 6px; text-align: left;" scope="col">BTC mining</th>
    <th style="width: 39%; padding: 10px 6px; text-align: left;" scope="col">AI lease</th>
   </tr>
  </thead>
  <tbody>
   <tr style="background: #ffffff;">
    <td style="padding: 10px 6px; border-bottom: 1px solid #e0e8e3; font-weight: bold;">Revenue</td>
    <td style="padding: 10px 6px; border-bottom: 1px solid #e0e8e3; overflow-wrap: break-word;">Block rewards and transaction fees</td>
    <td style="padding: 10px 6px; border-bottom: 1px solid #e0e8e3; overflow-wrap: break-word;">Contracted rent, phased by delivery</td>
   </tr>
   <tr style="background: #f3f8f5;">
    <td style="padding: 10px 6px; border-bottom: 1px solid #e0e8e3; font-weight: bold;">Power costs</td>
    <td style="padding: 10px 6px; border-bottom: 1px solid #e0e8e3;">Direct operating exposure</td>
    <td style="padding: 10px 6px; border-bottom: 1px solid #e0e8e3;">Tenant reimbursement</td>
   </tr>
   <tr style="background: #ffffff;">
    <td style="padding: 10px 6px; border-bottom: 1px solid #e0e8e3; font-weight: bold;">Margin</td>
    <td style="padding: 10px 6px; border-bottom: 1px solid #e0e8e3;">Variable profitability</td>
    <td style="padding: 10px 6px; border-bottom: 1px solid #e0e8e3;">~99% projected property-level NOI*</td>
   </tr>
   <tr style="background: #f3f8f5;">
    <td style="padding: 10px 6px; border-bottom: 1px solid #e0e8e3; font-weight: bold;">Return</td>
    <td style="padding: 10px 6px; border-bottom: 1px solid #e0e8e3;">Sensitive to BTC price and difficulty</td>
    <td style="padding: 10px 6px; border-bottom: 1px solid #e0e8e3;">~33% projected unlevered yield on cost*</td>
   </tr>
   <tr style="background: #ffffff;">
    <td style="padding: 10px 6px; font-weight: bold;">Main risk</td>
    <td style="padding: 10px 6px;">Mining competition and energy costs</td>
    <td style="padding: 10px 6px;">Construction, financing and tenant credit</td>
   </tr>
  </tbody>
 </table>
 <div style="padding: 10px 12px; background: #edf4f0; font-size: 11px; line-height: 1.5; color: #596d64;">
  Source: Riot Platforms Q3 2026 investor presentation. *Company projections, not realized returns. Property-level NOI excludes financing costs and other corporate-level expenses.
 </div>
</div>
<p>Riot’s existing AMD lease provides some evidence for the model, having generated an 80% operating lease gross margin during the quarter. But the comparison has limits: gross margin and net operating income measure different costs, and the AMD project is much smaller than Corsicana.</p>
<p>The development schedule also matters. Riot expects the first 400 MW to be delivered in September 2027, with the full 910 MW scheduled for July 2028. Rental income begins as contracted capacity is delivered, making construction progress central to the investment case.</p>
<h2 id="how-much-selling-pressure-does-riot-create">How Much Selling Pressure Does Riot Create?</h2>
<p>Riot’s nine-month Bitcoin sales averaged approximately $5.5 million in proceeds per calendar day. That is a useful measure of the company’s capital requirements, but not a record of its daily market activity.</p>
<p>The distinction prevents a misleading comparison with Bitcoin’s reported global trading volume. Aggregate volume includes repeated trading of the same coins and does not measure how much additional selling exchanges can absorb without moving prices.</p>
<p>For Bitcoin investors, the implication is therefore narrower than the headline treasury reduction suggests.</p>
<p>Riot has already executed the reported sales. Its future supply contribution depends on remaining reserves, mining production and additional funding requirements.</p>
<p>For Riot shareholders, the consequences are more direct: the company is exchanging liquid cryptocurrency exposure for a capital-intensive infrastructure business whose returns will depend on execution over several years.</p>
<h2 id="bitcoin-s-rsi-improves-but-macd-remains-negative">Bitcoin’s RSI Improves, but MACD Remains Negative</h2>
<p>The November 4 recovery has strengthened Bitcoin’s daily momentum without establishing a confirmed bullish reversal.</p>
<figure style="width: 100%" class="wp-caption aligncenter"><img src="https://ethnews.com/wp-content/uploads/2026/11/BTCUSD_2026-11-04_18-10-10-1024x798.webp" alt="Bitcoin (BTC) daily price chart showing a 4.15% rebound to $80,549.65, with RSI recovering above 50 and MACD remaining negative." width="696" height="542">
 <figcaption>
  Bitcoin reclaims $80,000 as momentum improves, although the MACD remains bearish. <strong><a href="https://www.tradingview.com/chart/Ds9qR56x/?symbol=COINBASE%3ABTCUSD" rel="noopener noreferrer nofollow">Chart by Alexander Zdravkov, TradingView.</a></strong>
 </figcaption>
</figure>
<p>RSI has returned above its neutral midpoint and its signal average. MACD, however, remains below its signal line, with both readings in negative territory.</p>
<p>The narrowing histogram indicates that bearish momentum is easing, although a bullish crossover has not occurred.</p>
<div style="width: 100%; max-width: 620px; margin: 20px auto; font-family: Arial,Helvetica,sans-serif; color: #26344b;">
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  <div style="font-size: 16px; font-weight: bold; line-height: 1.35;">
   Bitcoin Momentum Dashboard
  </div>
  <div style="font-size: 12px; color: #68758a; margin-top: 4px;">
   Coinbase BTC/USD | Daily chart | November 4, 2026
  </div>
 </div>
 <table style="width: 100%; border-collapse: collapse; table-layout: fixed; font-size: 12px; line-height: 1.5; margin: 0;">
  <thead>
   <tr style="background: #34486e; color: #ffffff;">
    <th style="width: 33%; padding: 10px 7px; text-align: left;" scope="col">Indicator</th>
    <th style="width: 26%; padding: 10px 4px; text-align: center;" scope="col">Reading</th>
    <th style="width: 41%; padding: 10px 7px; text-align: left;" scope="col">Interpretation</th>
   </tr>
  </thead>
  <tbody>
   <tr style="background: #ffffff;">
    <td style="padding: 10px 7px; border-bottom: 1px solid #e2e7f0; font-weight: bold;">RSI (14)</td>
    <td style="padding: 10px 4px; border-bottom: 1px solid #e2e7f0; text-align: center; font-weight: bold;">51.13</td>
    <td style="padding: 10px 7px; border-bottom: 1px solid #e2e7f0;">Above neutral</td>
   </tr>
   <tr style="background: #f5f7fc;">
    <td style="padding: 10px 7px; border-bottom: 1px solid #e2e7f0; font-weight: bold;">RSI average</td>
    <td style="padding: 10px 4px; border-bottom: 1px solid #e2e7f0; text-align: center;">41.53</td>
    <td style="padding: 10px 7px; border-bottom: 1px solid #e2e7f0;">Momentum reference</td>
   </tr>
   <tr style="background: #ffffff;">
    <td style="padding: 10px 7px; border-bottom: 1px solid #e2e7f0; font-weight: bold;">MACD line</td>
    <td style="padding: 10px 4px; border-bottom: 1px solid #e2e7f0; text-align: center;">-1,082.58</td>
    <td style="padding: 10px 7px; border-bottom: 1px solid #e2e7f0;">Below signal line</td>
   </tr>
   <tr style="background: #f5f7fc;">
    <td style="padding: 10px 7px; border-bottom: 1px solid #e2e7f0; font-weight: bold;">MACD signal</td>
    <td style="padding: 10px 4px; border-bottom: 1px solid #e2e7f0; text-align: center;">-931.27</td>
    <td style="padding: 10px 7px; border-bottom: 1px solid #e2e7f0;">Negative territory</td>
   </tr>
   <tr style="background: #ffffff;">
    <td style="padding: 10px 7px; border-bottom: 1px solid #e2e7f0; font-weight: bold;">Histogram</td>
    <td style="padding: 10px 4px; border-bottom: 1px solid #e2e7f0; text-align: center;">-151.31</td>
    <td style="padding: 10px 7px; border-bottom: 1px solid #e2e7f0;">Bearish momentum easing</td>
   </tr>
   <tr style="background: #e7edf9;">
    <td style="padding: 11px 7px; font-weight: bold;">Price resistance</td>
    <td style="padding: 11px 4px; text-align: center; font-weight: bold;">$81K–$82K</td>
    <td style="padding: 11px 7px;">Prior trading area</td>
   </tr>
   <tr style="background: #f5f7fc;">
    <td style="padding: 11px 7px; font-weight: bold;">Price support</td>
    <td style="padding: 11px 4px; text-align: center; font-weight: bold;">$75,600</td>
    <td style="padding: 11px 7px;">Recent intraday low</td>
   </tr>
  </tbody>
 </table>
 <div style="padding: 10px 12px; background: #f0f3fa; font-size: 11px; line-height: 1.5; color: #68758a;">
  Source: TradingView, Coinbase BTC/USD, November 4 at 16:10 UTC. Chart by Alexander Zdravkov. Indicators are intraday readings of an unfinished daily candle and may change before the close.
 </div>
</div>
<p>The technical threshold is straightforward. Holding above the recently reclaimed price area while MACD approaches a bullish crossover would strengthen the recovery. Another rejection near resistance would leave the rebound vulnerable to renewed selling.</p>
<p>The more consequential development for the mining sector is Riot’s decision to prioritize AI infrastructure over Bitcoin accumulation. Its projected returns are attractive, but realizing them requires billions in financing and timely delivery of contracted capacity. That is the financial risk investors must evaluate alongside Bitcoin’s near-term price recovery.</p>
<p>The post <a href="https://ethnews.com/bitcoin-reclaims-80000-as-riot-reports-q3-earnings/" rel="noopener noreferrer nofollow">Bitcoin Reclaims $80,000 as Riot Reports Q3 Earnings</a> appeared first on <a href="https://ethnews.com" rel="noopener noreferrer nofollow">ETHNews</a>.</p>

Bitcoin Reclaims $80,000 as Riot Reports Q3 Earnings

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