Riot Platforms posts $84.4 million loss in Q2 amid 52% decline in Bitcoin production
Bitcoin
miner
Riot
Platforms
reported
a
net
loss
of
$84.4
million
for
the
second
quarter,
compared
to
a
net
loss
of
$27.4
million
during
the
same
period
last
year.
Despite
the
financial
setback,
the
company
reported
$70.0
million
in
revenue
for
the
quarter,
down
slightly
from
$76.7
million
in
the
prior
year.
The
results
reflect
a
challenging
environment
following
the
Bitcoin
network’s
recent
‘halving’
event.
Riot
Platforms’
loss
per
share
for
the
three
months
ending
June
30
stood
at
$0.32.
Q2
results
The
firm’s
net
loss
was
driven
by
a
$76.4
million
decrease
in
the
fair
value
of
Bitcoin,
a
non-cash
stock-based
compensation
expense
of
$32.1
million,
and
depreciation
and
amortization
of
$37.3
million.
The
miner
also
reported
a
52%
decline
in
Bitcoin
production,
which
dropped
to
844
Bitcoin
from
1,775
in
the
second
quarter
of
2023.
However,
Riot
Platforms
managed
to
maintain
strong
gross
margins
despite
the
decline
with
revenue
on
par
with
the
previous
year.
The
‘halving’
event
and
increased
network
difficulty
contributed
to
a
higher
average
direct
cost
to
mine
Bitcoin,
which
rose
to
$25,327
from
$5,734
per
Bitcoin
in
the
second
quarter
of
2023.
The
company
reported
$13.9
million
in
power
credits
for
the
quarter,
including
$4.4
million
from
demand
response
programs,
which
helped
reduce
its
average
energy
cost.
Riot
ended
the
second
quarter
with
$646.5
million
in
working
capital,
including
$481.2
million
in
cash
on
hand,
and
held
9,334
unencumbered
Bitcoin,
valued
at
approximately
$585.0
million.
Looking
ahead,
Riot
Platforms
anticipates
achieving
a
total
self-mining
hash
rate
capacity
of
36
EH/s
by
the
end
of
2024
and
increasing
its
2025
deployed
hash
rate
guidance
from
40
EH/s
to
56
EH/s.
Expansion
Riot
CEO
Jason
Les
highlighted
the
company’s
achievements,
including
the
successful
energization
of
its
second
large-scale
facility
in
Corsicana,
Texas.
The
facility
added
two
buildings
with
a
total
capacity
of
200
megawatts
(MW),
with
the
remaining
two
buildings
expected
to
be
operational
by
the
end
of
2024.
Additionally,
Riot
expanded
operations
at
its
Rockdale
Facility
and
nearly
doubled
its
installed
hash
rate
to
22
exahashes
per
second
(EH/s)
by
the
end
of
the
quarter.
In
July,
Riot
Platforms
further
strengthened
its
growth
pipeline
by
acquiring
Block
Mining
Inc.,
a
vertically
integrated
Bitcoin
miner
in
Kentucky.
The
acquisition
brought
60
MW
of
power
capacity
across
two
facilities,
with
potential
expansion
to
over
300
MW
by
the
end
of
2025.
The
company
plans
to
leverage
its
strong
balance
sheet
and
experienced
development
teams
to
continue
building
best-in-class
Bitcoin
mining
facilities.
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