Originally published on: August 01, 2024
Riot Platforms, a leading Bitcoin miner, shocked investors by posting its first quarterly loss since 2022 as it grappled with the aftermath of April’s halving event. The company reported a Q2 net loss of $84.4 million, or $0.32 per share, doubling the loss forecasted by Zacks. This marked the first time Riot had reported a quarterly loss since Q4 2022.
The increased loss can be attributed to a significant rise in selling, general, and administrative expenses, totaling $61.2 million, a $41.4 million increase from the previous quarter. Despite revenue falling by 8.75% year-on-year to $70 million, just shy of Zacks’ estimates, Riot saw an increase in Bitcoin mining revenue, offsetting a decline in engineering revenues.
Riot’s Bitcoin mining output dropped by 52% to 844 BTC in Q2, largely due to the halving event. The cost to mine a Bitcoin soared by 340% to $25,327, driven by the halving and a 68% increase in the Bitcoin network hash rate. However, Riot’s Bitcoin mining revenue rose by 12%, aided by Bitcoin’s price surge.
During Q2, Riot nearly doubled its installed hash rate to 22 exahashes per second and expects to reach a total self-mining hash rate capacity of 36 EH/s by the end of 2024. In a competitive move, Riot increased its shares in Bitfarms after an unsuccessful acquisition attempt, showing determination to boost its position in the market.
While Riot’s share price dipped by 1.18% in after-hours trading following the Q2 report release, the company is down nearly 33.8% for the year. In contrast, CleanSpark has seen a 47% increase and surpassed Riot as the second-largest Bitcoin miner by market cap. As the industry continues to evolve, Riot Platforms faces challenges but remains a key player in the ever-changing world of Bitcoin mining.
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