Riot Platforms, Inc. (NASDAQ: RIOT), which claims to be an industry leader in Bitcoin (BTC) mining and data center hosting, reported financial results for the three-month period ended June 30, 2023.
The unaudited financial statements and accompanying presentation materials are available on Riot’s official website.
Jason Les, CEO of Riot, said:
“I am excited to announce second quarter 2023 results for Riot, as this quarter showcased ongoing execution of our long-term strategy and included a number of landmark announcements solidifying our future growth path. Riot’s core business is Bitcoin mining, and the scale of our vertically integrated operations and financial strength allowed us to execute on our power strategy at unmatched scale this quarter, driving our average cost to mine to $8,389 per Bitcoin in the second quarter, compared to an average Bitcoin price of $28,024.”
As noted in the update:
“As part of the next phase of our growth, Riot signed a long-term purchase agreement with MicroBT to acquire 33,280 next generation miners, with an option to purchase an additional 66,560 miners on the same price and terms. These miners are designed from the ground up for immersion cooling, will be manufactured in the United States, and will add an additional 7.6 EH/s in capacity for Riot by mid-2024. We also announced an agreement with Midas Immersion to purchase 200 megawatts of immersion cooling systems, with an option to purchase an additional 400 megawatts. Midas Immersion is an industry leading designer and manufacturer of immersion cooling systems, and this order will ensure that our Corsicana Facility will represent the largest and most advanced deployment of immersion cooling for Bitcoin mining in the world.”
The firm’s management also mentioned:
“As Riot continues to execute on our growth plans for the rest of this year and beyond, I remain extremely excited about Riot’s leading role in driving the cross-industry transformation of energy and money through Bitcoin mining.”
Second Quarter 2023 Financial and Operational Highlights
Key financial and operational highlights for the second quarter include:
Total revenue of $76.7 million, “as compared to $72.9 million for the same three-month period in 2022.” The increase was primarily “driven by a 27% increase in Bitcoin production as compared to the same three-month period in 2022, offset by lower Bitcoin prices which averaged $28,024 per Bitcoin for the quarter, a decrease of 15% as compared to an average price of $33,083 per Bitcoin for the same three-month period in 2022.”
Produced 1,775 Bitcoin “during the quarter, as compared to 1,395 Bitcoin during the same three-month period in 2022.” Higher Bitcoin production “was driven by a significant increase in miners deployed year over year.”
The average cost to mine Bitcoin “was $8,389 in the second quarter, as compared to $11,316 per Bitcoin for the same three-month period in 2022.”
Earned $13.5 million in power curtailment credits “during the quarter, as compared to $5.7 million in power curtailment credits earned for the same three-month period in 2022.”
Mining revenue of $49.7 million for the quarter, “as compared to $46.2 million for the same three-month period in 2022, primarily driven by higher Bitcoin production, offset by lower average Bitcoin prices.”
Data center hosting revenue of $7.7 million “for the quarter, as compared to $9.8 million for the same three-month period in 2022, driven by fewer hosting customers and lower Bitcoin values during the 2023 period, partially offset by increased revenue share from hosting customers.”
Engineering revenue of $19.3 million for the quarter, “as compared to $16.9 million for the same three-month period in 2022, primarily driven by increased demand from third-party data center and engineering customers and delivering on backlog of projects.”
Maintained industry-leading financial position, “with $408.4 million in working capital, including $289.2 million in cash on hand and $221.4 million in unencumbered Bitcoin (unaudited, assuming a market price for one Bitcoin on June 30, 2023 of approximately $30,477), all of which were produced by the Company’s self-mining operations, as of June 30, 2023.”
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