Riot Platforms, a leading Bitcoin mining company, reported a total revenue of $70.0 million for the second quarter of 2024, a decline from $76.7 million in the same period last year.
This decrease was attributed to the Bitcoin halving event in April, which significantly reduced the block rewards for miners.However, Riot managed to maintain strong gross margins.
The company also earned $13.9 million in power credits, including $4.4 million from demand response programs, which helped lower their average energy costs. Consequently, Riot’s average direct cost to mine a Bitcoin stood at $25,327.
Jason Les, CEO of Riot, expressed satisfaction with the company’s performance, highlighting the substantial operational growth and execution of long-term strategies despite the challenging market conditions. He noted that the Bitcoin network halving, a scheduled reduction in mining rewards that occurs every four years, impacted all miners.
Also, during the quarter, Riot successfully launched its second large-scale facility in Corsicana, Texas, quickly bringing two buildings with a total capacity of 200 megawatts (MW) online. The remaining two buildings, completing the first 400 MW phase at the Corsicana facility, are expected to be fully operational by the end of 2024. Additionally, the company expanded operations at its Rockdale facility, enhancing its hash rate capabilities.
The CEO also noted that as of June 30, 2024, Riot nearly doubled its installed hash rate to a total capacity of 22 exahashes per second (EH/s).
Meanwhile, Riot noted that it has acquired Block Mining Inc., a vertically integrated Bitcoin miner based in Kentucky. Block Mining has 60 MW of power capacity across two facilities, with potential expansion opportunities to increase capacity to over 300 MW by the end of 2025. With this acquisition, Riot aims to expand its pipeline to achieve over 2 gigawatts (GW) capacity, leveraging its strong balance sheet and experienced development teams to build state-of-the-art Bitcoin mining facilities.
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