Riot Platforms, Inc. (NASDAQ: RIOT), an industry participant supporting vertically integrated Bitcoin mining, reported financial results for the three-month period ended June 30, 2024.
“I am extremely pleased to present results for Riot’s second quarter 2024, during which we accomplished significant operational growth and execution of our long-term strategy. The second quarter saw the Bitcoin network ‘halving’ in April of this year, a preprogrammed event whereby the Bitcoin block subsidy received by miners from the network is cut in half every four years. Despite this reduction in available production for all Bitcoin miners, Riot posted $70.0 million in revenue for the quarter and maintained strong gross margins in our core Bitcoin mining business. Riot also generated $13.9 million in power credits, inclusive of $4.4 million from participation in demand response programs, during the quarter, reducing our average energy cost and bringing our average direct cost to mine a Bitcoin to $25,327.
As noted in the update:
“This quarter, Riot energized its second large-scale facility in Corsicana, TX and in quick succession brought on two buildings totaling 200 megawatts (“MW”) in capacity. The remaining two buildings representing the completion of the first 400 MW at our Corsicana Facility are expected to be fully operational by the end of 2024. We also expanded operations at our Rockdale Facility into newly available capacity as we continued to deploy new hash rate at both facilities. Riot nearly doubled installed hash rate during the quarter, growing to a total capacity of 22 EH/s as of June 30, 2024.”
As mentioned in the announcement:
“In July, Riot also expanded our growth pipeline and operational expertise through the acquisition of Block Mining Inc. (“Block Mining”), a vertically integrated Bitcoin miner in Kentucky. Block Mining currently has 60 MW of power capacity across two facilities, and through expansion opportunities available at these facilities as well as a third, greenfield development site, there is the potential to grow capacity to over 300 MW by the end of 2025. Collectively, Riot now has a pipeline to achieve over 2 GW of capacity and we will utilize our strong balance sheet and experienced development teams to continue to build best in class Bitcoin mining facilities.”
Second Quarter 2024 Financial and Operational Highlights
Key financial and operational highlights for the second quarter include:
- Total revenue of $70.0 million, as compared to $76.7 million for the same three-month period in 2023. The decrease was primarily driven by a $9.7 million decrease in
- Engineering revenues offset by a $6 million increase in Bitcoin Mining revenue.
- Produced 844 Bitcoin during the quarter, which represented a decrease of 52% from the 1,775 Bitcoin mined during the same three-month period in 2023, due primarily to the block subsidy ‘halving’ event, which occurred in April 2024, and increases in network difficulty.
The average direct cost to mine Bitcoin, “inclusive of power credits, was $25,327 in the quarter, as compared to $5,734 per Bitcoin for the same three-month period in 2023. The increase was primarily driven by the block subsidy ‘halving’ event, which occurred in April 2024 and an increase of 68% in global network hash rate as compared to the same three-month period in 2023.”
As noted by the firm, it claims to have generated $13.9 million in power credits “during the quarter, as compared to $13.5 million in power credits generated for the same three-month period in 2023.”
The firm also shared that it achieved Bitcoin mining “revenue of $55.8 million for the quarter, as compared to $49.7 million for the same three-month period in 2023, primarily driven by higher average Bitcoin prices and an increase in operational hash rate, partially offset by an increase in network difficulty and the block subsidy ‘halving’ event.”