Key Points
- Riot Platforms, a significant player in Bitcoin mining, reported a 65% increase in year-over-year revenue.
- Despite financial growth, the company faces challenges in expanding its hashrate within US facilities.
Bitcoin mining company, Riot Platforms, has reported a significant 65% increase in year-over-year revenue. This growth shows the company’s resilience and momentum in the wake of Bitcoin’s latest halving event.
Despite this strong financial performance, the company has encountered obstacles in its hashrate expansion efforts due to challenges within its U.S facilities.
Riot Platforms Q3 Revenue Report
In its Q3 2024 results, the company highlighted sustained growth and competitive, low power costs. CEO Jason Les stated that Riot recorded $84.8 million in revenue this quarter, a 65% increase over the same quarter in 2023.
This increase was driven by a 159% year-over-year increase in deployed hash rate. This resulted in the production of 1,104 Bitcoin this quarter, despite the ‘halving’.
Challenges Faced by Riot Platforms
Riot Platforms reported a quarterly net loss of $154 million, marking a 92% increase from its losses in Q3 2023. This decline was attributed to reduced power credits, heightened operational expenses, and the effects of Bitcoin’s halving event.
Despite these challenges, the firm maintained impressive energy efficiency, with an average mining cost of $35,376 per BTC, nearly half the current market price.
The company closed the quarter with a strong balance sheet, holding approximately $1.3 billion across cash, restricted cash, marketable equity securities, and reserves of 10,427 Bitcoin.
Looking forward, CEO Jason Les expressed optimism for the firm’s future, emphasizing efforts to boost power capacity and hash rate in Texas and Kentucky. These steps would support its goal of reaching 100 EH/s in self-mining capacity.
However, the company’s stock (RIOT) has struggled this year, dropping by 3.6% after hours on 30 October to $9.86 and down 32% year-to-date. Despite operational growth and higher hashrates, the stock’s decline can be seen as evidence of the challenges of a volatile market.