By
Bena Ilyas
May 7th, 2024
According to Riot, the decline in revenue is largely attributed to the market pullback of Bitcoin coupled with some measures triggered to meet the rising energy crisis in Texas.
Bitcoin mining giant Riot Blockchain (RIOT) reportedly recorded a revenue generation of almost 20% less than analysts estimated in the third quarter (Q3) of the year. The average estimation was around $56.3 million, however, the company generated $46.3 million in revenue. Compared to Riot’s consensus analyst estimate of adjusted net earnings of $0.01 per share, it recorded a net loss of $0.24. Comparatively, the previous quarter was far better as it generated $72.9 million in revenue. In the same period last year, it had a revenue of $64.8 million.
According to Riot, the decline in revenue is largely attributed to the market pullback of Bitcoin coupled with some measures triggered to meet the rising energy crisis in Texas. Regardless, this is very encouraging compared to other mining companies. In Q3 2022, Riot earned $13.1 million in power curtailment credits compared to the $2.5 million earned in the same period last year. The company produced 1,042 Bitcoin and generated a mining revenue of $22.1 million in the period under revenue. Its data center hosting revenue was $8.4 million, and also had an engineering revenue of $15.8 million. Its miners hosting fee in the previous quarter was $9.8 million.
According to Jason Les, CEO of Riot, the result shows it is a vertically integrated and diversified business model.
“Despite rising energy prices, which significantly impacted many Bitcoin miners, Riot was able to leverage our long-term fixed-rate power contract to generate significant power credits and in doing so, significantly reduce our operating costs,” he said.
Riot achieved an all-time record hash rate capacity of 5.6 EH/s after deploying a fleet of 55,728 miners. Last month, it increased its deployed fleet by 9,788 S19-series miners in addition to 7,912 miners staged for deployment. It is expected that the company would have 73,428 miners with a hash rate capacity of approximately 7.8 EH/s. Riot expects to record a total self-mining hash rate capacity of 12.5 EH/s by the first quarter of 2023. This is expected when some factors including the deployment of 115,450 Antminer ASICs are met.
In a bid to offer and sell up to $500 million of its common stock from time to time (ATM Offering), Riot filed a prospectus supplement with the US Securities and Exchange Commission (SEC) in March 2022. As of the end of the third quarter of 2022, Riot had received about $298.4 million on sales of 37.1 million of its common stock.