Riot Platforms, a prominent player in the Bitcoin mining industry, has reported a significant revenue increase of 65% year-over-year, despite facing hurdles with hashrate expansion at its U.S. operations. For the recent quarter, the company generated $84.8 million, marking a notable leap compared to the same period last year.
The company managed to produce 1,104 Bitcoin in the last quarter, which aligns with its production figures from the third quarter of 2023, even after the halving event. This achievement was aided by a substantial boost in the deployed hashrate, which rose by 159% year-over-year, reaching 28 EH/s (exahashes per second) by the end of September. However, Riot’s financial performance has been affected by a net loss of $154 million, equivalent to $0.54 per share, reflecting a 92% increase in losses from the previous quarter. This downturn is largely attributed to reduced power credits, elevated operating expenses, and the halving’s implications.
In terms of mining costs, the average expenditure to mine a single Bitcoin stood at $35,376, which is significantly lower than current market prices hovering around $72,000. The company’s energy efficiency, highlighted by an all-in power cost of just 3.1 cents per kWh, has been a critical factor in maintaining these margins.
Looking ahead, Riot Platforms has recalibrated its hashrate growth projections. The company now expects to reach a hashrate of 34.9 EH/s by the end of 2024, down from an earlier target of 36.3 EH/s, primarily due to slower-than-anticipated expansion at its Kentucky facilities. Additionally, projections for 2025 have been adjusted to 46.7 EH/s, which is lower than the previous forecast of 56.6 EH/s, again attributed to delays in expansion and infrastructure development.
In terms of financial stability, Riot Platforms reported a robust balance sheet, with approximately $1.3 billion in cash and equity securities, along with 10,427 Bitcoin holdings valued at around $750 million. Following the announcement, the company’s stock dipped 3.6%, trading at $9.86 in after-hours markets, with shares down 32% year-to-date and an 85% decline from its all-time high in February 2021.
