Key Points
- Riot Platforms has reported a net loss of $84.4 million due to a 52% decrease in Bitcoin production.
- Despite this, the company plans to reach a 36 EH/s hash rate capacity by late 2024.
Riot Platforms, a notable NASDAQ-listed Bitcoin miner, recently revealed an $84.4 million net loss in its latest quarterly financial report. This substantial loss comes despite the stability of Bitcoin’s price during this time.
Riot’s Revenue and Loss
The company’s losses are mainly due to a significant 52% year-on-year decrease in the amount of Bitcoin mined from April 1 to June 30. This sharp drop in production highlights the difficulties mining operations face amid changing industry dynamics.
Despite this overall decrease in Bitcoin production, Riot Platforms managed to generate $70.0 million in revenue for the quarter. It also maintained healthy gross margins within its primary Bitcoin mining operations.
Analysis of Q2 Report
In addition to this, Riot secured $13.9 million in power credits, including $4.4 million from demand response initiatives. This helped to reduce the company’s average energy costs, bringing the average direct cost per Bitcoin mined down to $25,327.
Jason Les, CEO of Riot, commented on the results, expressing his satisfaction with the company’s operational growth and the execution of its long-term strategy.
With $646.5 million in working capital, including $481.2 million in cash and 9,334 Bitcoin valued at $585.0 million, Riot Platforms is well-positioned for growth. The firm’s goal is to achieve a 36 EH/s hash rate by the end of 2024, and it plans to increase its 2025 hash rate guidance to 56 EH/s.
Despite the challenges, Riot’s resilience is clear as the company aims to achieve a hash rate capacity of 36 EH/s by the end of 2024. As the Bitcoin mining landscape continues to evolve, it will be interesting to see how Riot navigates the ongoing changes in the competitive cryptocurrency sector.