Riot Platforms, a significant player in the field of Bitcoin [BTC] mining, has reported a substantial 65% increase in revenue compared to the previous year. These results highlight the company’s strength and growth trajectory following the recent halving event for BTC.
Although the financial performance has been notably robust, Riot Platforms has encountered challenges in expanding its hashrate, particularly within its U.S. facilities.
Analysis of Riot Platforms’ Q3 Revenue
In its report on the third quarter of 2024, Riot Platforms emphasized continuous growth combined with competitive operating costs and low power expenses.
CEO Jason Les commented on the results:
“This quarter, Riot achieved $84.8 million in revenue, marking a 65% rise from the same period in 2023, driven by a 159% year-on-year increase in deployed hash rate to 28 EH/s by the quarter’s end.”
He further mentioned:
“The substantial growth in hash rate deployment enabled us to mine 1,104 Bitcoin in this quarter, aligning with our production in Q3 of 2023, despite the impact of the ‘halving’.”
Challenges in Bitcoin Mining for Riot Platforms
Riot Platforms reported a net loss of $154 million during the quarter, or $0.54 per share, representing a 92% increase in losses from Q3 2023. The decline was attributed to decreased power credits, increased operational costs, and the repercussions of BTC’s halving event.
However, despite these hurdles, the company maintained a commendable energy efficiency level, with an average mining cost of $35,376 per BTC – nearly half of the current market price of approximately $72,000.
Additionally, CEO Jason Les highlighted the company’s leading energy rates in the industry, averaging 3.1 cents per kilowatt-hour, as a significant factor in achieving cost efficiency.
Despite these challenges, Riot Platforms closed the quarter with a strong financial position, holding around $1.3 billion in cash, restricted cash, marketable equity securities, and a reserve of 10,427 Bitcoins.
For more insights, here are some key takeaways from the report:
Future Plans
Looking ahead, CEO Jason Les expressed optimism regarding the company’s future, emphasizing plans to increase power capacity and hash rate in Texas and Kentucky.
These initiatives aim to support Riot’s target of achieving 100 EH/s in self-mining capacity, reaffirming its dedication to expanding BTC mining operations in the U.S.
Although the company’s stock (RIOT) has faced challenges this year, witnessing a 3.6% drop to $9.86 after trading hours on October 30 and a 32% decrease year-to-date, the stock value currently stands at $10.48, remaining significantly below its peak of over $70 in February 2021.
Thus, despite operational advancements and increased hashrates, the decline in the stock price reflects the volatility present in the market.