BlackRock Invests in Riot and Endo International Hires Alvarez and Marsal
Endo International is a healthcare company specifically focused on biotechnology and drug manufacturing. They are based in Dublin, Ireland, and they have a market capitalization of $497.355 million, which makes them a small cap stock.
On Friday, it was announced by the Wall Street Journal that Endo has engaged with firm Alvarez and Marsal for a possible financial restructuring. The firm is known for their work in turning businesses around, but Endo hasn’t confirmed that they hired them. The report said that people familiar with the matter believe that Endo is looking for options to reduce their debt load of $8 billion. Combine this with the amount of opioid-related lawsuits they have, and it’s clear that they are in trouble. One of the financial restructuring options is bankruptcy, which was unsettling for investors, and it was reflected in their stock price Friday as the company fell to $2.13, down 40%.
Riot Blockchain is a technology company that focuses on cryptocurrency mining in North America, with the majority of that being Bitcoin. The Colorado-based business has skyrocketed with the recent crypto boom in the last few years, and they have a market cap of $3.294 billion.
On Friday, BlackRock, the world’s top asset manager, invested $175 million into Riot, which is 6.61% of the company, while also investing in Marathon, a similar stock. This is a major move for BlackRock, who manages 9 trillion dollars, and it is even better for Riot as they are now backed by a major institution, which is hard considering the fact that they are related to crypto. As a result of the news, Riot rose to $34.33, up 7.01%.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.