Riot Platforms Revenue Up 65% Despite Setbacks

Riot Platforms, a Bitcoin mining company, reported a 65% year-over-year revenue increase in the third quarter of the year. This increase is a testament to the company’s resilience in the face of challenges in expanding its mining capabilities in the United States.

Riot generated $84.8 million in revenue in the third quarter of 2024, as reported by CEO Jason Les. This revenue was primarily driven by a substantial increase in deployed hashrate, which enabled the company to mine 1,104 Bitcoin during the quarter.

Even after the Bitcoin halving event, this production level remained consistent with last year’s period.

Revenue Increased as a result of Riot’s Hashrate Expansion

The company’s hashrate expansion, which increased by 159% over the previous year to 28 exahashes per second (EH/s) by the end of September, was the primary factor in the increase in revenue.

Nevertheless, Riot experienced a quarterly net loss of $154 million, or $0.54 per share, representing a 92% increase from Q3 2023.

Les attributed the more significant loss to the impact of the diminution on earnings, increased operating expenses, and reduced power credits.

Riot attributed its energy optimization practices to a significant factor in maintaining an average Bitcoin mining cost of $35,376, approximately half the current market price.

Les stated, “Our industry-leading all-in cost of power of 3.1 cents per kilowatt-hour was achieved due to our energy efficiency.”

The company also underscored its robust balance sheet, which included approximately $1.3 billion in cash and equity securities and 10,427 Bitcoin valued at roughly $750 million.

Riot has ambitious expansion plans for the future despite the obstacles it faces.

Les expressed optimism, asserting that the company is dedicated to increasing the capacity and hashrate of its Texas and Kentucky facilities, with a long-term objective of achieving 100 EH/s in self-mining capacity.

Nevertheless, due to delays, the company has adjusted its projections, establishing a year-end objective of 34.9 EH/s, which is lower than the initial estimate of 36.3 EH/s. This is because progress at the recently acquired Kentucky facilities has been slower than was anticipated.

Riot modifies its 2025 hashrate objective

Riot also reduced its 2025 hashrate objective to 46.7 EH/s from 56.6 EH/s, citing extended lead times for a substation at its Corsicana facility in Texas.

Riot is optimistic about its future hashrate, to achieve 65.7 EH/s by the end of 2026, provided that its facilities achieve complete operational status.

Riot’s stock (RIOT) experienced a 3.6% decline to $9.86 in after-hours trading on October 30, despite the company’s positive revenue growth.

The stock has experienced a 32% decline since the start of the year and is still substantially below its all-time high of over $70 in February 2021.

After the April 20 halving event, which decreased mining rewards from 6.25 BTC to 3.125 BTC, equivalent to approximately $180,600, bitcoin miners, including Riot Platforms, have been modifying their operations.

As previously mentioned, there is a potential for a substantial outflow of Bitcoin from miners in the months following the forthcoming halving event.

Markus Thielen, the research director at 10x Research, recently estimated that Bitcoin miners can potentially liquidate approximately $5 billion worth of BTC after the halving.