Bitcoin miner Riot Platforms generated record $281 million total revenue in 2023

Bitcoin BTC +1.73% mining and data center hosting firm Riot Platforms generated record total revenue in 2023, according to its annual report for the year ending 31 Dec. filed today.

Riot’s total revenue rose 8% from $259.2 million in 2022 to $280.7 million in 2023. Bitcoin mining revenue accounted for $189 million (67%) of the total revenue — up 20% from 2022 — driven by higher Bitcoin production and the rising price of Bitcoin, the company said.

Riot, which runs North America’s largest Bitcoin mining facility in Rockdale, Texas, grew its Bitcoin production by 19% year-over-year from 5,554 BTC in 2022 to 6,626 BTC in 2023, despite curtailing its power usage by over 95% during peak periods of energy demand.

Riot also generated $64.3 million in engineering revenue, $27.3 million from data center hosting revenue and $0.1 million from other services. The revenue was not enough to offset higher expenses in 2023, including an increase in Riot’s mining capacity, headcount and power costs — leading to a net loss of $49.5 million. Net losses significantly reduced from $509.6 million in 2022, however.

Riot was compensated with $71.2 million in power credits through the support of the ERCOT grid in the state during several weather-related demand surges last year — equivalent to around 2,497 BTC at average prices. This included receiving a monthly record $31.7 million in power and demand response credits in August, The Block previously reported.

“We achieved record results in 2023, generating all-time highs of $281 million in total revenues, 6,626 Bitcoin produced and $71 million in power credits earned from our unique power strategy,” Riot CEO Jason Les said in a statement.

“At the same time, Riot has also further enhanced our already industry-leading balance sheet strength, ending 2023 with approximately $597 million in cash, 7,362 Bitcoin, worth approximately $311 million based on year-end Bitcoin prices, and nominal long-term debt,” Les added.

Riot’s hash rate capacity grew by 28% amid more Bitcoin mining expansion plans

Riot increased its hash rate capacity by 28% in 2023, reaching a record 12.4 EH/s as of Dec. 31. It also plans to bring additional capacity online at its new Corsicana facility in Texas throughout 2024. Hash rate is a measure of the total computational power being used to mine and process transactions on the Bitcoin network.

“Our targets are to reach 28 EH/s in total hash rate capacity by the end of 2024, 38 EH/s by the end of 2025, and ultimately 100 EH/s and beyond,” Les said.

Hash rate growth. Image: Riot Platforms.

Bitcoin mining difficulty, a measure of how hard it is to find a new block, reached a record high of 81.73 trillion on Feb. 16. That figure could reach 100 trillion before the next Bitcoin halving, anticipated for April 20.

Bitcoin mining difficulty. Image: BTC.com.