Riot Platforms (NASDAQ:RIOT) jumped 16% Tuesday, leading a rally in crypto stocks that outpaced Bitcoin (CRYPTO: BTC) and XRP (CRYPTO: XRP) on Election Day.
Why the CFTC’s Equity Perps Approval Is Lifting Crypto Stocks
As CoinDesk reported Tuesday, the CFTC cleared perpetual futures tied to individual stocks to trade on regulated U.S. exchanges for the first time, with both the CFTC and SEC sharing oversight.
The approval extends the same crypto-style trading model that already powers platforms like Hyperliquid as measured by Hyperliquid Strategies (NASDAQ:PURR) to mainstream U.S. markets, a tailwind for exchanges and infrastructure providers positioned to capture that volume.
CFTC Chairman Michael Selig said the move lets American traders access these products “within the protections of the CFTC’s proven regulatory framework, rather than being forced to turn to offshore, and often unregulated, venues.”
Perpetual futures recorded more than $630 billion in trading volume over the past month, according to DeFiLlama data, underscoring the scale of demand now opening up to regulated U.S. platforms.
Riot Platforms Jumps Ahead of Q3 Earnings
Riot reports third-quarter results Wednesday as it shifts from Bitcoin mining toward AI and high-performance computing infrastructure.
Analysts expect a loss of 32 cents per share on roughly $159.7 million in revenue, an improvement from the prior quarter’s steeper loss.
Riot fell 7.57% Monday on analyst concerns about AI data-center lease demand, and Tuesday’s rally came ahead of results, with investors watching how quickly the company’s AI business ramps following its Anthropic deal.
Coinbase Rises Despite Morgan Stanley Downgrade
Morgan Stanley (NYSE:MS) downgraded Coinbase to Underweight from Equalweight Monday as cited by CoinDesk, cutting its price target to $120 from $258 on concerns about slowing trading activity and crypto market uncertainty following the Binance hack.
Despite that call, Cathie Wood’s ARK Invest bought roughly $9 million in Coinbase shares and $8 million in Circle (NYSE:CRCL) shares across Friday and Monday’s sessions, while trimming about $8 million from its Bullish (NYSE:BLSH) position.
ARK also added roughly $646,000 in Robinhood (NASDAQ:HOOD) shares Monday.
Why Strategy Keeps Pointing to Bitcoin’s Breakeven Math
As Benzinga reported Tuesday, Strategy said Bitcoin has outpaced the company’s 2.3% annual breakeven rate in every rolling four-year period since 2014, with Bitcoin gaining 39.7% annually on a compounded basis over the most recent four-year stretch.
That defense came the same day Peter Schiff questioned whether Strategy’s cash reserves can keep supporting STRC’s (NASDAQ:STRC) share price after the company spent roughly $2.25 billion on buybacks this year.
Marathon Digital rose 9.5% Tuesday, rebounding alongside other Bitcoin miners as a higher Bitcoin price increases the dollar value of each coin mined.
The company’s own earnings are scheduled for November 9, giving investors another near-term catalyst to watch across the mining sector.
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