Riot Platforms Reports Impressive Third Quarter Revenue Increase
Riot Platforms, a prominent Bitcoin mining company, has revealed a remarkable 65% year-over-year revenue increase for the third quarter of 2024. This growth highlights the company’s resilience in navigating various challenges while working to expand its mining capabilities across the United States.
Third Quarter Earnings Overview
CEO Jason Les announced that Riot generated $84.8 million in revenue during the third quarter of 2024, a significant contributor to this success was the company’s increased hashrate, which enabled it to mine 1,104 Bitcoins in the quarter. Notably, this level of production has remained consistent compared to the same period last year, even after the recent Bitcoin halving event, which historically impacts mining operations.
Hashrate Expansion and Revenue Growth
Riot’s impressive revenue growth can be largely attributed to its hashrate expansion, which surged by 159% over the previous year, reaching a notable 28 exahashes per second (EH/s) by the end of September. Despite these gains, the company reported a quarterly net loss of $154 million, equating to $0.54 per share, representing a staggering 92% increase compared to Q3 2023. Les attributed this significant loss to several factors, including decreased power credits, rising operating expenses, and the overall impact of the halving on earnings.
Cost Efficiency in Bitcoin Mining
Despite facing financial setbacks, Riot maintained an average Bitcoin mining cost of $35,376, which is approximately half of the current market price. The company’s commitment to energy efficiency has played a crucial role in achieving this cost advantage, with Les highlighting an industry-leading power cost of just 3.1 cents per kilowatt-hour.
Financial Resilience and Future Expansion Plans
Riot Platforms reported a robust financial position, boasting around $1.3 billion in cash and equity securities, along with 10,427 Bitcoins valued at approximately $750 million. Looking ahead, the company has ambitious plans for expansion, with targeted projects across its Texas and Kentucky sites, aiming to ultimately achieve a self-mining capacity of 100 EH/s. However, delays have prompted Riot to revise its projections for year-end capacity to 34.9 EH/s, down from an initial estimate of 36.3 EH/s, primarily due to slower-than-expected progress at its newly acquired Kentucky facilities.
Revised Hashrate Projections for 2025
Moreover, Riot has also adjusted its hashrate forecast for 2025 to 46.7 EH/s, a decrease from the previous target of 56.6 EH/s. This adjustment comes in light of prolonged lead times for the construction of a substation at its facility in Corsicana, Texas. Nonetheless, the company remains optimistic about future expansions, projecting a goal of reaching 65.7 EH/s by the end of 2026 as its facilities achieve full operational status.
Market Response and Mining Dynamics Post-Halving
Following the earnings announcement, Riot’s stock (RIOT) experienced a slight dip of 3.6%, closing at $9.86 in after-hours trading on October 30. Since the beginning of the year, the stock has plummeted by 32% and remains significantly below its all-time high of over $70 reached in February 2021. In the wake of the Bitcoin halving event on April 20, which halved mining rewards from 6.25 BTC to 3.125 BTC, miners, including Riot, have been reevaluating their operational strategies. Analysts have suggested that there may be an impending wave of Bitcoin liquidation from miners, with 10x Research’s Markus Thielen estimating the potential for miners to offload around $5 billion worth of BTC in the months following the halving.