Originally published on: October 31, 2024
Bitcoin mining giant Riot Platforms has announced a substantial 65% year-on-year growth in revenue, reaching $84.8 million this quarter. Despite facing hurdles that have impacted its hashrate expansion plans, CEO Jason Les remains optimistic about the company’s future.
Les highlighted the significant increase in deployed hash rate that allowed Riot to produce 1,104 Bitcoin this quarter. This achievement, in conjunction with a 159% year-over-year rise in deployed hashrate, indicates the company’s continued growth trajectory. However, challenges at their US facilities have forced Riot to adjust its hashrate projections.
The firm’s net loss for the quarter stood at $154 million, primarily attributed to reduced power credits, higher operating expenses, and the impact of the halving. Despite this, Riot’s average cost to mine one Bitcoin was impressively low at $35,376, showcasing their energy efficiency with an industry-leading power cost of 3.1 cents/kWh.
With a robust balance sheet boasting $1.3 billion in cash and equity securities, as well as 10,427 Bitcoin valued at around $750 million, Riot is well-positioned for future growth. Les expressed excitement about expanding power capacity and hash rate across Texas and Kentucky, aiming to achieve a self-mining capacity of 100 EH/s.
However, challenges at their Kentucky facilities have led to reduced hashrate projections for 2024 and 2025. Despite these setbacks, Riot anticipates a hashrate capacity of 65.7 EH/s by the end of 2026, once all facilities are fully operational.
Following the announcement, Riot’s stock (RIOT) experienced a minor decline of 3.6%, trading at $9.86 in after-hours trading on Oct. 30. Despite year-to-date losses of 32% and a significant drop since its all-time high in February 2021, the company remains optimistic about its future prospects.
For more industry insights and updates on blockchain and crypto businesses, subscribe to our Crypto Biz newsletter. Stay informed about key trends and developments shaping the market and unlock valuable opportunities in the evolving world of cryptocurrency.
