Crypto Mining Giant Riot Platforms Reports Significant Revenue Growth

Riot Platforms, a leading Bitcoin mining company, reported a 65% year-over-year revenue surge, totaling $84.8 million for the quarter.

CEO Jason Les noted that despite a significant increase in their hash rate, which produced 1,104 Bitcoin during this period, the firm is facing challenges at its U.S. facilities that have led to a reduction in expansion plans.

The company’s deployed hash rate rose by 159% year-over-year to 28 EH/s as of the end of September. However, Riot recorded a net loss of $154 million, or $0.54 per share, largely due to lower power credits, higher operating costs, and the impact of Bitcoin’s halving.

Mining Bitcoin cost the company an average of $35,376, roughly half the current market price of around $72,000, thanks to its efficient energy use, achieving a competitive power cost of 3.1 cents per kilowatt-hour. Riot maintains a strong balance sheet with about $1.3 billion in cash and equity securities, along with 10,427 Bitcoin valued at approximately $750 million.

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Looking ahead, while Riot aims for a self-mining capacity of 100 EH/s, its projections have been scaled back to 34.9 EH/s by the end of 2024, down from a previous estimate of 36.3 EH/s, due to slower expansions in Kentucky. The company now expects to reach 46.7 EH/s by the end of 2025, down from an earlier target of 56.6 EH/s. Once both facilities are operational, Riot anticipates a capacity of 65.7 EH/s by the end of 2026.

On October 30, Riot’s stock dipped 3.6% to $9.86, with shares down 32% year-to-date and 85% since reaching an all-time high of over $70 in February 2021.

Alexander Stefanov