Riot Platform Reports Q2 Earnings with Lower Mining Costs and Increased Revenue
Riot Platform, a leading Bitcoin mining company, has released its second-quarter earnings report, showcasing significant revenue and a reduction in mining costs. Here are the key takeaways from the report:
- Riot reported an overall revenue of $76.7 million for the quarter, slightly below analysts’ predictions.
- Bitcoin mining generated $49.7 million of the total revenue, while data center hosting and engineering contributed $7.7 million and $19.3 million, respectively.
- The company’s power curtailment credits increased to $13.5 million, indicating a successful power strategy.
- Despite a decline in the price of Bitcoin, Riot managed to reduce its average mining cost per Bitcoin to $8,389, compared to $11,316 in the previous year.
- Riot mined a total of 1775 Bitcoin in the quarter, thanks to a 27% increase in output.
Riot’s Winning Power Strategy
Riot’s power strategy involves selling excess power back to the ERCOT grid at market-driven spot prices. This strategy has significantly reduced the company’s operation costs. In June, Riot earned about $10 million from its power strategy, despite mining fewer Bitcoins. This demonstrates the potential of the strategy to generate income beyond Bitcoin sales.
Resilience Amidst Challenges
Riot has shown resilience amidst decreasing margins for Bitcoin miners. By stopping energy-intensive operations and selling power at a premium during shortages, the company has managed to make money even as Bitcoin prices fell. Despite ending the quarter with a $27.7 million loss, Riot’s net loss was significantly lower compared to the same period last year.
Riot’s Future Plans
Riot has entered into a long-term purchase agreement with MicroBT to acquire 33,280 next-generation miners, increasing its production capacity by mid-next year. This move demonstrates Riot’s dedication to expanding its operations and staying competitive in the crypto market.
Hot Take
Despite challenges in the crypto and traditional financial economies, Riot Platform has managed to navigate the market and achieve impressive results. With its winning power strategy and commitment to growth, the company is well-positioned to continue thriving in the Bitcoin mining industry.
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