Bitcoin mining firm Riot Platforms reported a 65% year-over-year revenue increase in the third quarter of the year, showcasing resilience despite hurdles in expanding its mining capabilities in the United States.
According to CEO Jason Les, Riot generated $84.8 million in revenue in the third quarter of 2024, driven by significant growth in deployed hashrate, which allowed the company to mine 1,104 Bitcoin in the quarter.
This production level remained steady compared to the same period last year, even in the wake of the Bitcoin halving event.
Riot’s Hashrate Expansion Leads to Revenue Boost
The company’s hashrate expansion, which saw a 159% increase over the previous year to reach 28 exahashes per second (EH/s) by the end of September, fueled the revenue boost.
However, Riot faced a quarterly net loss of $154 million, or $0.54 per share, marking a 92% increase from Q3 2023.
Les attributed the larger loss to reduced power credits, increased operating expenses, and the impact of the halving on earnings.
Riot maintained an average Bitcoin mining cost of $35,376, about half of the current market price, citing its energy efficiency practices as a key factor.
“Our energy efficiency allowed us to achieve an industry-leading all-in cost of power of 3.1 cents per kilowatt-hour,” Les stated.
The firm also emphasized its strong balance sheet, reporting around $1.3 billion in cash and equity securities, alongside 10,427 Bitcoin valued at approximately $750 million.
Looking ahead, Riot has ambitious expansion plans despite challenges.
Les expressed optimism, stating that the company is committed to boosting capacity and hashrate across its Texas and Kentucky sites, with a long-term target of 100 EH/s in self-mining capacity.
However, the company revised its projections due to delays, setting a year-end target of 34.9 EH/s, down from the initially anticipated 36.3 EH/s, as progress at its recently acquired Kentucky facilities has been slower than expected.
Riot Adjusts 2025 Hashrate Goal
Riot also adjusted its 2025 hashrate goal to 46.7 EH/s, down from 56.6 EH/s, citing extended lead times for a substation at its Corsicana facility in Texas.
Riot remains optimistic about its future hashrate, aiming for 65.7 EH/s by the end of 2026 once its facilities reach full operational status.
Despite positive revenue growth, Riot’s stock (RIOT) saw a 3.6% dip to $9.86 in after-hours trading on October 30.
The stock has declined 32% since the beginning of the year and remains significantly below its February 2021 all-time high of over $70.
Bitcoin miners, including Riot Platforms, have been adjusting their operations after the halving event on April 20, which reduced mining rewards from 6.25 BTC to 3.125 BTC, equivalent to approximately $180,600 at present.
As reported, a notable outflow of Bitcoin from miners could be on the horizon in the months following the upcoming halving event.
In a recent note, Markus Thielen, the head of research at 10x Research, estimated that Bitcoin miners have the potential to liquidate approximately $5 billion worth of BTC after the halving.
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