- Riot Platforms reported an $84.4 million net loss due to a 52% drop in Bitcoin production.
- Despite challenges, Riot aims to reach a 36 EH/s hash rate capacity by late 2024.
In an unexpected development, Riot Platforms, a prominent NASDAQ-listed Bitcoin [BTC] miner, announced a substantial net loss of $84.4 million in its most recent quarterly financial report.
Riots Platforms’ $84.4M loss
Despite Bitcoin’s price remaining stable during this period, the company’s losses were largely attributed to a significant 52% year-over-year decline in the volume of BTC mined from the 1st of April to the 30th of June.
This sharp decrease in production underscores the challenges facing mining operations amidst fluctuating industry dynamics.
However, despite the overall reduction in Bitcoin production across the industry, Riot Platforms achieved $70.0 million in revenue for the quarter and sustained robust gross margins within its core BTC mining operations.
Q2 report analysis
Additionally, the company secured $13.9 million in power credits, including $4.4 million from demand response initiatives, which helped lower its average energy expenses.
Consequently, Riot’s average direct cost per Bitcoin mined was reduced to $25,327.
The report said,
“The average direct cost to mine Bitcoin, inclusive of power credits, was $25,327 in the quarter, as compared to $5,734 per Bitcoin for the same three-month period in 2023.”
Remarking on the same, Jason Les, CEO of Riot, added,
“I am extremely pleased to present results for Riot’s second quarter 2024, during which we accomplished significant operational growth and execution of our long-term strategy.”
With $646.5 million in working capital, including $481.2 million in cash and 9,334 BTC valued at $585.0 million, Riot Platforms is poised for growth.
The firm aims to achieve a 36 EH/s hash rate by the end of 2024 and increasing its 2025 hash rate guidance to 56 EH/s.
“Collectively, Riot now has a pipeline to achieve over 2 GW of capacity and we will utilize our strong balance sheet and experienced development teams to continue to build best in class Bitcoin mining facilities.”
Roadmap ahead
Despite challenges, Riot’s resilience remains evident as the company aims to achieve a hash rate capacity of 36 EH/s by the end of 2024.
Therefore, as the BTC mining landscape evolves, it remains to be seen how Riot will navigate the ongoing changes in the competitive cryptocurrency sector.
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