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Riot reported stellar growth for its Bitcoin mining revenue during Q2 2021. The company will add 2000 S19 Pro Antminers for operations at its Whinstone facility.
The Chinese crackdown on Bitcoin activity has proved to be a boon for US companies operating in this space. On Monday, August 23, Riot Blockchain (NASDAQ: RIOT) unveiled its second-quarter earnings for this year.
This Nasdaq-listed Bitcoin mining company reported a 1540% surge in revenue for the quarter ending June 30. Besides, it clocked a record revenue of $31.5 million for a three-month period. The revenue numbers for Q2 2020 stood only at $1.9 million.
Similarly, the net income for the company for Q2 2021 was $19.3 million, against $10.6 million net loss for Q2 2020. As of the Monday closing, the Riot Blockchain stock ended 4% in the green at $35.73 levels. Speaking of the development, Riot CEO Jason Les said:
“We are extremely pleased with Riot’s record quarterly financial results. The Company’s improved financial results are a direct result of Riot’s absolute focus on Bitcoin mining and growing its mining operations. With the successful acquisition of Whinstone US (“Whinstone”), the Company’s growth prospects have been significantly de-risked, and future financial opportunities are very exciting.
As previously announced, Riot is aggressively expanding its capacity at Whinstone, which is expected to provide the critical infrastructure necessary to successfully execute on driving continued growth for the Company.”
Besides, the company took quite a few measures at the operational levels. For e.g. Riot Blockchain successfully completed the acquisition of Whinstone. This also helped it become the largest hosting and mining company in entire North America. During the last quarter, Riot also initiated a 400 MW capacity expansion at Whinstone.
More Details of Riot Blockchain’s Q2 Financial Results
During the second quarter of 2021, Riot’s mining margin stood at $22.1 million against only $0.5 million during Q2 2020. Mining margin suggests the excess of margin revenues against the costs.
However, Riot notes that the improvement in gross margins and profits were primarily due to the surge in the price of Bitcoin. This further combined with the higher performance efficiency of the deployed miners.
Riot further noted that it will be deploying an additional 2000 S19 Pro Antminers at its Whinstone facility. By September next month, Riot expects to have a total of 25,946 Antminers in operation.
The announcement further adds: “Selling, general, and administrative (“SG&A”) expenses increased by 58% to $3.5 million, as compared to $2.2 million for the same three-month period in 2020. The increase in SG&A expenses was primarily due to increased personnel as a result of the company’s rapid growth”.