Riot Platforms Boosts Bitcoin Holdings but Faces Production Drop

Riot Platforms has increased its Bitcoin reserves to more than 10,000 coins, marking a 37% rise from last year.

Yet, the company’s Bitcoin output decreased by 13% in August compared to July, and by 3% year-on-year.

The reduction in production is linked to rising energy costs and the effects of Bitcoin’s recent halving, which cut mining rewards. To counteract these issues, Riot is shifting focus to data centers, although these operations are costlier than traditional mining.

In August, Riot produced 322 Bitcoins, down from 370 in July and 333 a year ago. Unlike the previous August, no Bitcoins were sold this time. The company managed to reduce energy costs through power credits gained during peak demand periods in Texas.

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Riot’s average hashrate dropped to 14.5 EH/s in August, down 7% from July but up significantly from last year. The company is expanding its Kentucky facilities, aiming for a hashrate of 28 EH/s by the end of Q3 and 36 EH/s by the end of the year.

Riot Platforms, holding a nearly 20% stake in Bitfarms, is advocating for board changes at Bitfarms during an upcoming shareholder meeting. This follows Bitfarms’ acquisition of Stronghold Digital Mining for $125 million. Bitfarms has rejected Riot’s proposed changes, arguing that they are motivated by Riot’s own interests rather than genuine governance improvements.

Alexander Stefanov