Colorado-based Bitcoin mining firm Riot Platforms has reported a narrower net loss of $27.7 million in the second quarter of 2023. This improvement can be attributed to a significant increase in Bitcoin production and a record-breaking hash rate capacity.
According to Riot Platforms’ Aug. 9 results filing, the company generated a total revenue of $76.7 million in the second quarter, which represents a 5.2% increase compared to the same period last year. The primary driver of this growth was a 27% year-on-year increase in Bitcoin production. However, this positive development was partly offset by a decline in Bitcoin prices during the quarter.
Mining revenue accounted for $49.7 million of the company’s total revenue, representing 64.7% of its earnings for the quarter. Additionally, Riot Platforms earned $13.5 million through its power curtailment credits.
In comparison to the previous year, Riot Platforms experienced a significant reduction in net loss. The net loss in the second quarter of 2022 amounted to $353.5 million, making the $27.7 million loss in the second quarter of 2023 a remarkable improvement. Furthermore, the Q2 net loss was also approximately half of what was reported in the first quarter of 2023.
During the second quarter, Riot Platforms managed to produce 1,775 Bitcoins. The average cost to mine a Bitcoin (BTC) during this period was $8,389, surpassing the average cost in the previous quarter.
Moreover, the firm achieved an all-time high hash rate capacity of 10.7 exahashes per second during the quarter. Looking ahead, Riot Platforms anticipates that its hash rate capacity will reach 20.1 EH/s by the second quarter of 2024 and eventually rise to 35.4 EH/s by 2025. These estimates take into account the company’s recent purchase of 33,280 mining rigs in late June, with the assumption that an additional 66,560 miners will be acquired in the near future.
However, despite the positive financial results, Riot Platforms’ share price experienced a decline. The share price fell 4.42% earlier in the day and an additional 0.86% in after-hours trading following the release of the company’s results.
In conclusion, Riot Platforms has made significant progress in reducing its net loss through increased Bitcoin production and reaching record hash rate capacity. With further expansion plans in place, the company looks poised for continued growth in the Bitcoin mining industry.