Colorado-based Bitcoin mining company Riot Platforms has posted a significant reduction in its net loss for the second quarter of this year compared to the same period in 2022, according to its latest earnings report. The firm’s net loss stood at $27.7 million for Q2 2023, a stark contrast to the $353.6 million loss it reported in the same quarter last year when the industry was grappling with high energy costs and low Bitcoin prices.
One notable factor that contributed to Riot’s improved financial performance was the increase in power curtailment credits. The company earned $13.5 million in credits during the second quarter, a notable rise from the $5.7 million earned in the corresponding quarter of the previous year.
Riot’s primary business revolves around Bitcoin mining, and the integration of its operations allowed it to execute its power strategy on an unmatched scale. Jason Les, Riot’s CEO, highlighted this in the earnings report, stating that their average cost to mine one Bitcoin was $8,389 in Q2 2023, significantly lower than the average Bitcoin price of $28,024.
In terms of revenue, Riot’s Q2 2023 revenue reached $76.7 million, marking a rise from the $72.9 million earned in the same period last year. This growth was primarily attributed to a 27% increase in Bitcoin production, although it was somewhat offset by lower Bitcoin prices during the quarter.
Riot managed to produce a total of 1,775 Bitcoins in the second quarter, resulting in mining revenue amounting to $49.7 million, a noticeable increase from the $46.2 million generated in the same period the previous year. This surge in Bitcoin production was largely a result of deploying a significantly higher number of miners compared to the previous year.
The company has also secured a strategic agreement with MicroBT, a prominent mining equipment manufacturer. This agreement will see Riot acquire 33,280 next-generation miners, with an option to purchase an additional 66,560 miners. These acquisitions are projected to increase Riot’s mining capacity by 7.6 EH/s by mid-2024.
Riot’s mining capacity reached an all-time high of 10.7 EH/s in the second quarter, and the company has ambitious plans for expansion. It aims to achieve a mining capacity of 20.1 EH/s by Q2 2024 and an impressive 35.4 EH/s by 2025.
Despite these positive developments, Riot’s stock price experienced a decline of 4.42% on Wednesday and a further 0.85% dip during after-hours trading. While the cryptocurrency mining sector continues to show promise, it remains subject to market volatility.
