Cryptocurrencies

Riot revenue up 65% as expansion delays impact hashrate

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Riot Platforms reported a 65% increase in revenue year-on-year, reaching $84.8 million for the third quarter of 2024, driven by a rise in deployed hashrate.

CEO Jason Les emphasized that this growth came despite challenges and the Bitcoin (CRYPTO:BTC) halving event.

He noted that the firm produced 1,104 BTC in Q3, similar to its production during the same period in 2023.

Les attributed the revenue increase to a 159% rise in Riot’s deployed hashrate, which reached 28 EH/s (exahashes per second) by the end of September.

Despite this, the company reported a net loss of $154 million, which was 92% higher than the loss in Q3 of the previous year.

The increase in losses was mainly due to reduced power credits, increased operating expenses, and the impact of the Bitcoin halving.

The average cost to mine one Bitcoin for the company stood at $35,376, which is nearly half of the current spot prices of around $72,000.

Les highlighted Riot’s energy efficiency, noting that the company achieved an all-in cost of power at an industry-leading rate of 3.1 cents per kWh.

Riot also reported strong financial standing, with approximately $1.3 billion in cash and securities, and a Bitcoin reserve of 10,427 BTC, valued at roughly $750 million.

However, the company faced setbacks in its hashrate expansion.

Riot revised its 2024 hashrate target to 34.9 EH/s, down from the initially planned 36.3 EH/s.

This reduction was attributed to delays in the expansion of its recently acquired Kentucky facilities.

Projections for 2025 have also been lowered to 46.7 EH/s, down from 56.6 EH/s, due to longer lead times at its Corsicana Facility.

Les expressed optimism about Riot’s path forward, aiming for a future capacity of 65.7 EH/s by the end of 2026 when all facilities are fully operational.

Despite positive growth, Riot’s stock (RIOT) dipped 3.6% in after-hours trading to $9.86 on October 30, reflecting ongoing challenges.

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