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Riot Platforms Reports Strong Q3 2024 Earnings Amid Bitcoin Production Challenges

TL;DR

  • Riot Platforms reported total revenues of $84.8 million in the third quarter of 2024.
  • Bitcoin production remained steady at 1,104 BTC, despite the block reward reduction.
  • The company expects to reach a self-mining capacity of 34.9 EH/s by the end of 2024.

Riot Platforms, Inc. (NASDAQ: RIOT), a leader in vertically integrated Bitcoin mining, has announced its financial results for the third quarter of 2024.

According to the company’s press release, total revenues reached $84.8 million, representing an impressive 65% increase compared to the same period last year.

This growth was primarily driven by a 159% increase in the deployed hash rate, which reached 28 EH/s by the end of the quarter.

Bitcoin production remained stable, with 1,104 BTC produced, aligning with the results from the third quarter of 2023.

The company attributes its success to a unique energy management strategy, achieving an average electricity cost of 3.1 cents/kWh, one of the lowest in the industry.

This flexibility to utilize low-cost energy at its Corsicana facility and a fixed-price contract in Rockdale gives it a significant competitive advantage.

However, despite these achievements, the cost of mining Bitcoin increased to $35,376 per unit, compared to a negative cost of ($22,741) in the same quarter last year, due to a 75% decline in energy credits and an increase in network difficulty.

In the third quarter of 2024, Riot generated $12.4 million in energy credits, a notable drop from $49.6 million in the third quarter of 2023.

While revenues from Bitcoin mining reached $67.5 million, revenues from engineering fell to $12.6 million, reflecting the changing dynamics of the market.

Additionally, the company reported a strong financial position with approximately $1.3 billion in cash, investments, and over 10,427 BTC in its possession.

Riot Platforms Reports Strong Q3 2024 Earnings Amid Bitcoin Production Challenges

Future Outlook of Riot

Riot has ambitious projections for its self-mining capacity, expecting to reach 34.9 EH/s by the end of 2024.

However, this target is lower than previous expectations due to a slower pace of expansion at its Kentucky facilities, which are now expected to be completed in 2025.

Furthermore, the company has adjusted its capacity forecast for 2025 to 46.7 EH/s, reflecting delays in expansion plans and a longer wait for new facilities.

Despite the challenges, Riot Platforms remains committed to growth and expansion.

The company has raised approximately $730.8 million through its At-The-Market (ATM) stock offering in 2024, providing the necessary resources to continue developing its operations.

With a focus on cost optimization and energy sustainability, Riot is well-positioned to face market challenges and seize future opportunities.

As the landscape of Bitcoin mining evolves, Riot Platforms is dedicated to being a leader in the sector, continually striving to enhance its capacity and efficiency in Bitcoin production.

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