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White House Order Spurs Concerns Over Crypto Investments in 401(k) Plans

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Written by Jack Kellogg Reviewed by Tim Sykes Fact-checked by Ellis Hobbs
Updated 8/16/2025, 12:37 pm ET 8/16/2025, 12:37 pm ET | 6 min 6 min read
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Riot Platforms Inc. stocks have been trading down by -6.78% amid the regulatory scrutiny in cryptocurrency sector.

Finance industry expert:

Analyst sentiment – neutral

  1. Riot Platforms, Inc. (RIOT) is in a precarious market position, with profitability ratios indicating inefficiencies; its EBIT margin at 19.4% is notable, but its net losses with a profit margin of -17.51% suggest a need for operational improvements. The revenue growth over 3 and 5 years, at 20.65% and 136.85%, respectively, reflects a robust expansion trajectory, counteracted by concerning financial strength indicators such as negative cash flows (FCF: -$291.7M) and a return on equity of -5.48%, pointing to strategic challenges in generating shareholder value. Despite a current ratio of 1.4 indicating reasonable short-term liquidity, the company must focus on debt management and asset utilization.

  2. Technical analysis reveals a mixed short-term trend, with RIOT’s recent price movements displaying mild consolidation. Over the past week, prices moved from $11.13 to $11.40, presenting a potential support level near $11.12-$11.18 and resistance around $11.79-$12.29 after observing incremental highs. The notable backing off from $12.17 suggests a near-term overbought condition. Volume data does not reflect strong directional conviction, suggesting a cautious trading strategy. Traders might consider a range-bound approach, buying near support and selling near resistance, until a breakout clarifies the directional bias.

  3. The regulatory landscape, as evidenced by the White House decision to widen crypto access in 401(k) plans, provides potential long-term growth opportunities for RIOT, aligning its operations with emerging investment trends. However, short-term risks remain, as the legislative changes may introduce volatility and investor trepidation. Compared to the broader financial sector, RIOT’s performance lags due to operational inefficiencies, yet it holds potential for reconciling losses with its revenue growth and market prospects. For the near term, support is maintained at $11, with resistance around $12.5 as a pivotal breakout point. Overall, the outlook for RIOT remains Neutral, contingent on operational improvements and market stabilization.

  • Analysts express concerns about the volatility of cryptocurrencies, which may jeopardize retirement savings as portfolios diversify into riskier assets.

  • Financial advisors confront the challenge of balancing potential high returns with higher risks in retirement investment strategies.

  • As traditional retirement plans integrate cryptocurrencies, regulatory bodies grapple with ensuring investor protection and market stability.

  • The policy change could significantly influence how financial institutions design and manage future retirement products, possibly reshaping the market landscape.

Candlestick Chart

Weekly Update Aug 11 – Aug 15, 2025: On Saturday, August 16, 2025 Riot Platforms Inc. stock [NASDAQ: RIOT] is trending down by -6.78%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

The current performance of Riot Platforms Inc. underscores a mixed bag in its financial health and market journey. Amid fluctuating stock prices, the company grapples with both opportunities and hurdles within the evolving crypto market. Riot’s recent earnings reveal that it generated $376.66M in revenue, but there’s a deeper story behind these numbers.

Their gross margin stands at 70.1%, indicating substantial profitability from sales. However, a pretax profit margin at -16.6% highlights ongoing profitability challenges. Key ratios reveal a total debt-to-equity ratio of 0.26 and a current ratio of 1.4, suggesting manageable debt but also emphasizing the need for prudent financial management in supporting sustainable growth.

More Breaking News

Additionally, the enterprise value surges to about $5.08 billion, reflecting market confidence in Riot’s potential but also calling for vigilance given the volatile nature of the crypto industry. Riot’s asset turnover ratio of 0.2 is a concern, pointing to slower utilization of assets to drive sales. Despite these hurdles, Riot Platform’s resilience in sourcing revenue growth can aid in navigating this dynamic environment.

Conclusion and Forward-Looking Statements

The broader incorporation of cryptocurrencies into retirement plans seeded by the recent regulatory shift hints at a transformative phase for financial markets. Riot Platforms stands as a key player amid this progression, poised to capture and cultivate opportunities unfolding from policy adaptations. However, this path remains riddled with caution as inherent unpredictabilities of crypto trading magnify potential risks. As millionaire penny stock trader and teacher Tim Sykes says, “The goal is not to win every trade but to protect your capital and keep moving forward.”

Moving forward, Riot Platforms should continue enhancing operational efficiencies amid focusing on asset utilization to taper potential volatility impacts. Balancing agility with comprehensive risk assessments, stakeholders must navigate through these financial terrains with foresight, adapting readily to the evolving regulatory and market climates. This future demands a vigilant eye on innovation complemented by strategic alignment with emergent market demands.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Jack Kellogg

He teaches webinars on Tim Sykes’ Trading Challenge He became Tim’s youngest millionaire student in 2020. Now he’s second on the Trading Challenge leaderboard with $12.9 million in career earnings. He’s a master of the 7-Step Pennystocking Framework. Jack is one of a rare breed of traders to profitably trade the entire penny stock framework.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”