BTC Miner Riot Platform’s revenue soars to $280 million in 2023.

Key Takeaways

Bitcoin production on Riot Platforms in 2023 increased by 19% compared to 2022.

Riot’s Bitcoin mining costs in 2023 (excluding its own mining power credits) will average $7,539 per Bitcoin, a 33% decrease compared to $11,225 in 2022.

Riot Platforms, a major player in the Bitcoin mining space, has revealed impressive financial results for fiscal 2023. According to the company’s 2023 annual report, total revenue soared from $259.2 million to $280.7 million, up 8% from the previous year. .

A significant portion of Riot’s revenue (about 67%) comes from its Bitcoin mining operations, amounting to $189 million. This represents a solid 20% year-over-year gain, primarily driven by increased Bitcoin production and a surge in Bitcoin value throughout 2023.

In a notable move in December 2023, Riot Platforms made a significant acquisition, including acquiring 66,560 mining rigs from MicroBT. The acquisition, considered one of the largest hashrate expansions in the company’s history, is strategically timed ahead of the expected Bitcoin halving in April.

Despite challenges such as increased costs associated with expanding mining capacity, increased headcount, and rising power costs, Riot Platforms has increased its Bitcoin production by 19% year-on-year, reaching 6,626 BTC in 2023. In particular, these achievements were achieved by drastically reducing power usage by more than 95% during times of peak energy demand.

In addition to Bitcoin mining revenue, the Riot platform also generated revenue streams from engineering services ($64.3 million), data center hosting ($27.3 million), and other services ($100,000 nominal). However, these revenues were not enough to offset the increased costs incurred during the fiscal year, resulting in a net loss of $49.5 million. Nonetheless, this is a significant improvement over the $509.6 million net loss reported in 2022.

Riot Platforms also secured $71.2 million in power credits through support from the Texas ERCOT grid during weather-related demand surges. This corresponds to approximately 2,497 BTC at the average price. The company’s CEO, Jason Les, expressed satisfaction with the performance, highlighting the record results achieved in 2023, including all-time highs in total revenue, Bitcoin production, and earned power credits.

Riot Platforms aims to continue its growth trajectory by further expanding its hashrate capacity in the future. By the end of 2024, the company is targeting a total hash rate capacity of 28EH/s, with a goal of reaching 38EH/s by the end of 2025 and ultimately exceeding 100EH/s in the future.

In related news, Riot Platforms, along with the Texas Blockchain Council, succeeded in temporarily halting the U.S. Department of Energy’s emergency investigation into energy use by cryptocurrency miners following a lawsuit. The move comes amid heightened scrutiny of digital cryptocurrency miners due to concerns about their impact on the power grid, greenhouse gas emissions and energy-intensive operations.

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