Colorado-based Bitcoin mining company Riot Platforms narrowed its net loss to $27.7 million in the second quarter, a remarkable achievement driven by increased Bitcoin production and a record hash rate capacity.
During this period, the cryptocurrency miner reported a total revenue of $76.7 million, marking a 5.2% rise compared to Q2 2022. This growth was predominantly fueled by a 27% year-on-year surge in Bitcoin production, even though it was offset by a decline in Bitcoin prices, as indicated in the firm’s results filing on August 9.
Notably, mining activities contributed $49.7 million, accounting for 64.7% of the overall quarterly revenue. An additional $13.5 million was generated through the firm’s power curtailment credits.
Simultaneously, the substantial reduction in net loss for Q2 was a stark contrast to the previous year’s figure of $353.5 million. Moreover, this improved performance represented nearly half of the net loss reported in the initial quarter of 2023.
In the quarter, the company successfully mined 1,775 Bitcoins, achieving a noteworthy accomplishment by bringing down the average cost of Bitcoin (BTC) mining to $8,389 in Q2, surpassing the previous quarter’s average.
Moreover, the mining enterprise achieved an unprecedented peak hash rate capacity of 10.7 exahashes per second, and it projects this metric to escalate to 20.1 EH/s by the second quarter of 2024, before ultimately surging to 35.4 EH/s in 2025.
These projections stem from the recent acquisition of 33,280 mining rigs in late June. The 35.4 EH/s projection takes into account the assumption that Riot will exercise its option to procure an additional 66,560 miners at the same price and terms sometime in the near future.
Although Riot’s stock price experienced a 4.42% decline earlier in the day, it further decreased by an additional 0.86% during after-hours trading, shortly after the company’s financial results were made public.