Bitcoin Miner Riot Platforms increased its revenue from Bitcoin mining, although the cost of mining a Bitcoin increased by 340%.
Bitcoin Miner Riot Platforms failed to meet expectations after reporting its first quarterly loss since 2022. The miners are still experiencing the effects of April’s halving event.
Riot’s second-quarter net loss of $84.4 million, or $0.32 per share, was twice the $0.16 per share loss anticipated by investment research firm Zacks. This marks the organization’s initial quarterly loss since Q4 2022.
An increase in selling, general, and administrative expenses comprising $61.2 million, representing a $41.4 million increase from Q2 2023, was a significant factor in the widened loss.
The Bitcoin miner’s revenue decreased by 8.75% yearly to $70 million, just below Zacks’ projections. The decrease was precipitated by a decline in engineering revenues, partially mitigated by an increase in Bitcoin mining revenue.
Riot’s Bitcoin mining productivity decreased by 52% to 844 BTC in Q2, a decrease that it primarily attributed to the halving event that occurred in April.
The halving and a 68% increase in the Bitcoin network hash rate resulted in a startling 340% increase in the firm’s cost to mine a Bitcoin, from $5,734 to $25,329.
Nevertheless, Riot’s Bitcoin mining revenue increased by 12% between June 30, 2023, and June 30, 2024, resulting from a nearly 100% increase in Bitcoin’s price.
Riot nearly doubled its implemented hash rate to 22 exahashes per second in the second quarter. It anticipates that its total self-mining hash rate capacity will reach 36 EH/s by 2024.
In the interim, Riot intensified its acquisition strategy against competitor Bitfarms by purchasing approximately 10 million additional shares this month, as indicated in a July 31 filing with the United States securities regulator.
Riot attempted to acquire Bitfarms in mid-June by offering a $950 million acquisition. However, the company subsequently acknowledged its defeat.
Riot stated on June 24 that it is evident that it is impossible to engage with the current Bitfarms Board regarding a prospective merger.
Since the publication of its Q2 report, Riot’s (RIOT) share price has declined by 1.18% in after-hours trading, according to data from Google Finance.
Riot has experienced a roughly 33.8% decline in value thus far in 2024, while CleanSpark (CLSK), one of its competitors, has experienced a 47% increase and has replaced Riot as the second-largest Bitcoin miner by market capitalization.
