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.
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.
