Bitcoin miner Riot Platforms narrows losses in Q2, earns more power credits
Quick Take
- Colorado-based Riot recorded a net loss of $27.7 million in the second quarter, compared with a net loss of $353.6 million in the same period last year, its latest earnings results showed.
- The miner earned $13.5 million in power curtailment credits during the quarter, up from $5.7 million in the same quarter last year.
Bitcoin mining firm Riot Platforms posted a narrowed net loss in the second quarter of this year, significantly less than in the same period last year when the industry languished under high energy cost and low bitcoin prices, its latest earnings results showed.
Colorado-based Riot recorded a net loss of $27.7 million in the second quarter, compared with a net loss of $353.6 million in the same period last year, according to the company’s earnings report released Wednesday.
“Riot’s core business is bitcoin mining, and the scale of our vertically integrated operations and financial strength allowed us to execute on our power strategy at unmatched scale this quarter, driving our average cost to mine to $8,389 per Bitcoin in the second quarter, compared to an average bitcoin price of $28,024,” Jason Les, chief executive officer of Riot, said in the report.
The company’s revenue came in at $76.7 million in the second quarter of this year, up from $72.9 million in the same quarter last year. The increase was mainly driven by a 27% increase in bitcoin production, offset by lower Bitcoin prices, the company said.
Power credits
Notably, Riot earned $13.5 million in power curtailment credits during the second quarter, compared with $5.7 million in the same period last year.
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The company produced 1,775 Bitcoin in the second quarter, with its mining revenue amounting to $49.7 million, up from $46.2 million in the year-ago period. “Higher Bitcoin production was driven by a significant increase in miners deployed year over year,” Riot said.
Les said that Riot has signed a long-term purchase agreement with MicroBT to acquire 33,280 next-generation miners with an option to purchase 66,560 more miners. These miners would likely add an additional 7.6 EH/s in capacity for Riot by mid-2024, he added.
Riot reached 10.7 EH/s in capacity in the second quarter, an all-time high. It expects to reach 20.1 EH/s by the second quarter of 2024 and 35.4 EH/s in 2025.
Riot’s stock price closed 4.42% lower on Wednesday and dipped 0.85% in after-hours trading.
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