- Riot Platforms reported 65% revenue growth but faces challenges as it expands facilities in the US
- RIOT stock fell 32% YTD, reflecting market volatility despite strong operating performance
Riot Platforms, a major player in Bitcoin [BTC] mining, reported a significant increase of 65% in turnover year on year. These findings underscored BTC’s resilience and growth momentum in the wake of BTC’s latest halving.
However, despite its strong financial performance, the company has faced obstacles in its efforts to expand hashrate, citing challenges within its US facilities.
Riot Platforms Q3 Revenue Report
Outlining its Q3 2024 results, the company highlighted continued growth alongside highly competitive and low energy costs.
Commenting on the results, CEO Jason Les stated:
“Riot posted revenue of $84.8 million this quarter, representing a 65% increase over the same quarter in 2023, driven by a 159% year-over-year increase in deployed hash rate to 28 EH /s at the end of the quarter.
He added:
“This significant increase in hash rate used allowed us to produce 1,104 Bitcoin this quarter, in line with our Bitcoin production in Q3 2023, despite the ‘halving’.”
The Bitcoin Mining Problems of Riot Rigs
Riot Platforms reported a quarterly net loss of $154 million, or $0.54 per share, up 92% from Q3 2023 losses. This decline was attributed to reduced energy credits, higher operating costs and the impact of Bitcoin’s halving.
However, despite these challenges, the company maintained impressive energy efficiency, with an average mining cost of $35,376 per BTC – almost half of the current market price of around $72,000.
Additionally, CEO Jason Les noted that the company’s industry-leading energy rates, averaging 3.1 cents per kilowatt hour, played a key role in achieving this cost efficiency.
That said, Riot Platforms ended the quarter with a strong balance sheet, with approximately $1.3 billion in cash, escrow cash, tradable shares, and reserves of 10,427 Bitcoin.
For more information, here are some key highlights from the report:
Source: www.prnewswire.com
What’s next?
As expected, CEO Jason Les shared optimism about the company’s future, highlighting efforts to increase energy capacity and hash rates in Texas and Kentucky.
These steps would help support its goal of achieving 100 EH/s of self-mining capacity, underscoring its commitment to growth in the US BTC mining industry.
Meanwhile, shares of the company (RIOT) have struggled this year, down 3.6% after hours on October 30 to $9.86 and down 32% since the start of the year. At the time of writingAt $10.48, RIOT remained 85% below its February 2021 high of over $70.
Source: Google Finance
So despite operational growth and higher hashrates, the stock’s decline can be seen as evidence of the challenges of a volatile market.