Riot Blockchain, a leading Bitcoin mining company, reported mixed financial results for the quarter ending June 30, 2023. On the one hand, the company generated overall revenue of $76.7 million, up from $72.9 million in the same period last year. This growth was driven by a 27% increase in Bitcoin production, as opposed to the value of Bitcoin itself.
On the other hand, Riot reported a net loss of $27.7 million, compared to a net loss of $353.6 million in Q2 2022. This was due to a number of factors, including a decrease in Bitcoin’s average price, a dip in revenue from data center hosting, and the cost of repairs to damage caused by a severe winter storm in Texas in December 2022. Despite these challenges, Riot CEO Jason Les highlighted the company’s resilience and capacity for innovation. He noted that Riot’s core business is Bitcoin mining and that the company’s vertically integrated operations and financial strength allowed it to execute its power strategy at an unmatched scale in Q2 2023.
This power strategy involved both power sales and demand response revenue, which together amounted to the equivalent of a “361 BTC” increase based on June’s average Bitcoin price. This strategy helped Riot to offset the decrease in mined Bitcoin and the subsequent drop in revenue.
Les also pointed to Riot’s partnership with Midas Immersion, which is set to transform the company’s Corsicana Facility into the largest and most advanced immersion cooling deployment for Bitcoin mining globally. This partnership will help Riot to reduce its costs and improve its efficiency. In addition, Riot announced a long-term purchase agreement with MicroBT, securing 33,280 next-generation miners “with an option to purchase an additional 66,560 miners on the same price and terms.” These new acquisitions are expected to add another 7.6 EH/s by mid-2024 and are designed specifically for immersion cooling while being manufactured in the United States.
Overall, Riot’s Q2 2023 report presents a mixed bag of developments. While notable challenges such as a significant net loss and a decrease in Bitcoin’s average price did occur, Riot demonstrated resilience and a capacity for innovation. Its strategic moves and partnerships and a strong emphasis on vertical integration imply a commitment to being a leader in Bitcoin mining technology and infrastructure.
