Riot Platforms, Inc. (NASDAQ: RIOT), an industry participant focused on vertically integrated Bitcoin mining, reported financial results for the three-month period ended March 31, 2024.
Jason Les, CEO of Riot, said:
“I am excited to present results for Riot for the first quarter of 2024, during which we achieved a number of significant milestones which further solidify our growth path. This quarter, Riot reported net income of $211.8 million and earnings per share of $0.82 which are new record highs for our quarterly results. Additionally, we reported $245.7 million in adjusted EBITDA for the quarter, another record high for Riot, rounding out strong financial performance for the quarter.
As noted in the update:
“Last month, Riot also announced the energization of our Corsicana Facility, which we believe will be the largest dedicated Bitcoin mining facility in the world once fully developed. Miners deployed at our Corsicana Facility are already hashing, and we remain on track to increase our self-mining hash rate capacity to 31 EH/s by the end of the year, which will nearly triple our existing hash rate capacity. With up to 1 GW of total capacity when fully developed, the Corsicana Facility provides Riot with a clear growth pipeline unrivalled in our industry and gives us a strong foundation upon which we will continue scaling our Bitcoin mining business in the future.”
First Quarter 2024 Financial and Operational Highlights
Key financial and operational highlights for the first quarter include:
- Total revenue of $79.3 million, as compared to $73.2 million for the same three-month period in 2023. The increase was primarily driven by a 131% increase in Bitcoin prices as compared to the same three-month period in 2023, partially offset by lower Bitcoin production.
- Produced 1,364 Bitcoin during the quarter, which represented a decrease of 36% from the 2,115 Bitcoin mined during the three months ended March 31, 2023, due primarily to the significant increase in the Bitcoin network difficulty, which has more than doubled since January 2023.
The average cost to mine Bitcoin “was $23,034 in the quarter, as compared to $9,438 per Bitcoin for the same three-month period in 2023.”
The increase was primarily driven “by an increase of 89% in global network hash rate as compared to the same three-month period in 2023.”
Other key highlights:
- Earned $5.1 million in power curtailment credits during the quarter, as compared to $3.1 million in power curtailment credits earned for the same three-month period in 2023.
- Following the termination of the legacy Data Center Hosting business, reportable segments have changed to reflect the two primary business segments of Riot: Bitcoin Mining and Engineering.
- Bitcoin Mining revenue of $74.6 million for the quarter, as compared to $48.0 million for the same three-month period in 2023, primarily driven by higher average Bitcoin prices.
- Engineering revenue of $4.7 million for the quarter, as compared to $16.1 million for the same three-month period in 2023.
- Maintained financial position, with $692.5 million in working capital, including $688.5 million in cash on hand, and 8,490 in unencumbered Bitcoin (equating to $605.6 million assuming a market price for one Bitcoin on March 31, 2024 of approximately $71,333), all of which were produced by the Company’s self-mining operations, as of March 31, 2024.
Total revenue for the three-month period “ended March 31, 2024 was $79.3 million, and consisted of $74.6 million in Bitcoin Mining revenue and $4.7 million in Engineering revenue.”
Bitcoin Mining revenue in “excess of Bitcoin Mining cost of revenue for the quarter was $33.5 million (45% of mining revenue), as compared to $26.1 million (54% of mining revenue) for the same three-month period in 2023, an increase of $7.4 million driven by higher Bitcoin prices during the quarter and an increase in revenues from the expansion of Bitcoin mining capacity at the Rockdale Facility.”
Bitcoin Mining cost of revenue consists “primarily of direct production costs of mining operations, including electricity, labor, and insurance, but excludes depreciation and amortization.”
