Riot Platforms Reports $84.4 Million Loss Amid Decline in Bitcoin Production
Riot Platforms, a Bitcoin mining company listed on NASDAQ, reported a net loss of $84.4 million in its latest quarterly financial statement.
The primary cause of the loss was a 52% year-over-year decline in Bitcoin production from April 1 to June 30. Additionally, Riot incurred a non-cash stock-based compensation expense of $32.1 million and $37.3 million in depreciation and amortization.
This quarter marked the first full period after April’s Bitcoin halving, which reduced mining rewards from 6.25 to 3.125 Bitcoins per block, effectively doubling the cost of mining. Riot noted that the average direct cost to mine one Bitcoin was $25,327 this quarter, compared to $5,734 for the same period in 2023.
Despite these increased costs, Riot generated $55.8 million in mining revenue, up from $49.7 million year-over-year, reflecting a higher average Bitcoin price. Overall revenue for the quarter was $70 million, slightly down from $76.7 million in Q2 2023.
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Bitcoin halvings, occurring roughly every four years, significantly impact mining profitability by reducing rewards while requiring the same computational effort and energy. While smaller miners face challenges, larger companies like Riot benefit from better capital access and favorable energy deals.
Riot reported $646.5 million in working capital and $481.2 million in cash. The company has been expanding its operations, notably with the recent activation of its Corsicana Facility, which aims to boost its total capacity to 1 GW, enough to power around 750,000 homes. The facility is expected to increase Riot’s mining capacity by 16 exahashes per second (EH/s) by the end of the year.
In July, Riot also acquired Block Mining, adding 1 EH/s to its mining capabilities. The company projects a total hash rate capacity of 36 EH/s by the end of 2024.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
