In the second quarter of this year, Riot Platforms recorded a significant net loss of $84.4 million, compared to $27.4 million in the same quarter last year.
This increase in losses is attributed to the continued impact of April’s Bitcoin (CRYPTO:BTC) halving.
According to the quarterly report, Riot’s total revenue for Q2 2024 was $70 million, down from $76.7 million in the same period last year.
This decline was primarily driven by a $9.7 million drop in Engineering revenues, though it was partially offset by a $6 million rise in Bitcoin mining revenue.
The company produced 844 Bitcoin during this period, which is a 52% decrease from 1,775 BTC in Q2 2023.
This drop is largely due to the April 2024 block subsidy halving and increased network difficulty.
The average direct cost to mine Bitcoin rose sharply to $25,327 per BTC, up from $5,734 in Q2 2023, driven by the halving and a 68% rise in the global network hash rate.
Despite these challenges, Riot’s mining revenue grew to $55.8 million, compared to $49.7 million in the prior year, owing to higher average BTC prices and an improved operational hash rate.
Riot maintained a strong financial position with $646.5 million in working capital, including $481.2 million in cash.
The company also held 9,334 unencumbered Bitcoin, worth approximately $585 million, all mined through its operations.
Riot CEO Jason Les highlighted the company’s resilience, stating, “Despite this reduction in available production for all Bitcoin miners, Riot posted $70.0 million in revenue for the quarter and maintained strong gross margins in our core Bitcoin mining business.”
In July, Riot acquired Kentucky-based Block Mining in a $92.5 million deal, which included $18.5 million in cash and $74 million in Riot common stock.
This acquisition led to an immediate increase in Riot’s hash rate, expanded its geographical footprint, and allowed entry into additional energy markets outside the Electric Reliability Council of Texas (ERCOT) region.
Riot Platforms continues to navigate the challenges posed by the Bitcoin halving and remains focused on its growth and expansion strategies despite the current downturn in production.