Riot Platforms Reports Q2 2024 Financials with $70M Revenue and 22 EH/s Hash Rate

Riot Platforms, Inc. (NASDAQ: RIOT), a leader in vertically integrated Bitcoin mining, has reported its financial results for the second quarter of 2024. The company achieved a total revenue of $70 million and a deployed hash rate of 22.0 exahashes per second (EH/s), according to riotplatforms.com.

Operational Highlights

During the quarter, Riot energized its second large-scale facility in Corsicana, Texas, bringing two buildings online with a combined capacity of 200 megawatts (MW). The remaining two buildings at the Corsicana facility are expected to be fully operational by the end of 2024, completing the first 400 MW phase. Additionally, Riot expanded its operations at the Rockdale Facility, nearly doubling its installed hash rate to 22 EH/s as of June 30, 2024.

In July, Riot acquired Block Mining Inc., a vertically integrated Bitcoin miner in Kentucky, adding 60 MW of power capacity across two facilities. The acquisition is anticipated to expand Riot's capacity to over 300 MW by the end of 2025, pushing Riot’s potential capacity to over 2 gigawatts (GW).

Financial Performance

Riot reported a total revenue of $70 million for Q2 2024, a slight decrease from $76.7 million in Q2 2023. The decrease was primarily due to a $9.7 million decline in Engineering revenues, partially offset by a $6 million increase in Bitcoin Mining revenue. The company produced 844 Bitcoin during the quarter, down 52% from 1,775 Bitcoin in Q2 2023, primarily due to the Bitcoin block subsidy halving event in April 2024 and increased network difficulty.

The average direct cost to mine Bitcoin, including power credits, was $25,327, up from $5,734 per Bitcoin in Q2 2023. This increase was driven by the halving event and a 68% rise in global network hash rate. Riot generated $13.9 million in power credits during the quarter, slightly up from $13.5 million in Q2 2023.

Revenue Breakdown

Bitcoin Mining revenue for the quarter stood at $55.8 million, compared to $49.7 million in Q2 2023. Engineering revenue was $9.6 million, down from $19.3 million in the same period last year. Riot also maintained a strong financial position with $646.5 million in working capital, including $481.2 million in cash.

The company held 9,334 Bitcoin, valued at approximately $585 million as of June 30, 2024, all produced through its self-mining operations. Despite a net loss of $(84.4) million for the quarter, Riot's industry-leading financial position and strategic growth initiatives highlight its resilience and long-term vision.

Future Outlook

Riot anticipates achieving a total self-mining hash rate capacity of 36 EH/s by the end of 2024. The Corsicana Facility, upon full development, will have a total capacity of 1 GW, making it the largest known Bitcoin mining facility by developed capacity. The recent acquisition of Block Mining has also boosted Riot's growth pipeline, with plans to expand operational capacity in Kentucky.

In February 2024, Riot initiated the 2024 ATM Offering, raising approximately $516.4 million in net proceeds from the sale of 42.7 million shares of common stock during the first half of the year. An additional $61 million was raised from the sale of 6.6 million shares in July, bringing the total shares outstanding to 303.5 million as of July 29, 2024.

Conclusion

Riot Platforms continues to demonstrate strong operational growth and strategic execution, positioning itself as a leader in the Bitcoin mining industry. Despite the challenges posed by the Bitcoin halving event and increased network difficulty, the company’s robust financial health and strategic acquisitions underscore its commitment to expanding its mining capacity and operational efficiency.