Riot Platforms, an American Bitcoin mining firm, reported a significant increase in net losses for the second quarter of this year. The company recorded a net loss of $84.4 million, compared to $27.4 million in the previous year’s same quarter. Additionally, Riot reported a total revenue of $70 million in the second quarter of 2024, down from $76.7 million in the same period last year. This decline in revenue was primarily driven by a $9.7 million drop in Engineering revenues, partially offset by a $6 million rise in Bitcoin mining revenue.
During the second quarter, Riot Platforms produced 844 Bitcoin, representing a 52% decrease from the previous year. This decline was attributed to the April 2024 block subsidy ‘halving’ and increased network difficulty. The average direct cost to mine Bitcoin also soared to $25,327 per BTC, up from $5,734 in Q2 2023. This increase in cost was driven by the halving and a 68% rise in the global network hash rate.
Despite these challenges, Riot Platforms stated that its mining revenue grew to $55.8 million, compared to $49.7 million in the prior year. The company maintained a strong financial position with $646.5 million in working capital, including $481.2 million in cash. Additionally, it held 9,334 unencumbered Bitcoin, worth approximately $585 million, all mined through its operations. Riot recently acquired the Kentucky-based firm Block Mining in a $92.5 million deal, which included $18.5 million in cash from Riot’s reserves and $74 million in Riot common stock.
Riot Platforms’ CEO Jason Les commented on the company’s performance in the second quarter, highlighting the impact of the Bitcoin network ‘halving’ in April. Despite the reduction in available production for all Bitcoin miners, Riot posted $70.0 million in revenue for the quarter and maintained strong gross margins in its core Bitcoin mining business. Following the acquisition of Block Mining, Riot reported an immediate increase in hash rate, expanded its geographical footprint, and entered additional energy markets outside the Electric Reliability Council of Texas (ERCOT) region.
Riot Platforms faced challenges in the second quarter of this year, with widening losses and a decline in revenue. However, the company remains optimistic about its future prospects, citing strategic acquisitions and a strong financial position as key factors in its continued growth and success in the Bitcoin mining industry.
