Colorado’s prominent Bitcoin mining entity, Bitcoin miner Riot Platforms, has successfully managed to trim its net loss in the second quarter to $27.7 million. This noteworthy improvement is a result of an increase in Bitcoin production and achieving a record hash rate capacity.
A Look at the Q2 Financial Results
In the second quarter, Riot Platforms saw an increase in total revenue, which amounted to $76.7 million, marking a 5.2% rise from Q2 2022. This surge was primarily due to a 27% year-on-year increase in Bitcoin production, despite a slump in Bitcoin prices, as per the company’s August 9 results filing. The mining revenue, which stood at $49.7 million, contributed to 64.7% of the firm’s total revenue for the quarter. Additionally, the firm earned $13.5 million through its power curtailment credits.
Interestingly, the Q2 net loss was significantly less compared to the same period last year, which was $353.5 million. It was also nearly half of the net loss reported in the first quarter of 2023.
Record Bitcoin Production and Hash Rate Capacity
Riot Platforms produced a total of 1,775 Bitcoin during this quarter. The average cost for mining a single Bitcoin was reported to be $8,389 in Q2, outperforming the average price in Q1. The firm also achieved a record-breaking hash rate capacity of 10.7 exahashes per second. Riot Platforms anticipates that this figure will double to 20.1 EH/s by the second quarter of 2024 and further increase to 35.4 EH/s in 2025.
These projections follow the company’s acquisition of 33,280 mining rigs in late June. The estimated 35.4 EH/s capacity assumes Riot’s exercise of its right to purchase an additional 66,560 miners at the same price and terms in the near future.
Impact on Share Price
Despite these positive developments, Riot’s share price fell by 4.42% during the day and further slipped by 0.86% in after-hours trading, shortly after the release of the firm’s results. The share price fell to $16.34 in after-hours trading.
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