Leading Bitcoin miner Riot Platforms reported a Q2 net loss of $84.4 million, or $0.32 per share, marking the company’s first quarterly loss since Q4 2022.
This loss was significantly higher than the $0.16 per share loss for the same period in 2023. The company was able to identify the major cause of its financial woes in the form of higher operating costs and the Bitcoin halving that occurred in April.
Riot’s Q2 revenue fell 8.75% from $76.7 million for the same three-month period in 2023 to $70 million. The firm’s Bitcoin mining output dropped 52% to 844 BTC, mainly due to the halving event.
The price to mine a Bitcoin rose by 340% from $5,734 to $25,327 because of the halving and a 68% rise in the Bitcoin network hash rate. However, Riot’s Bitcoin mining revenue increased by 12% due to a nearly twofold increase in the price of Bitcoin in the last year.
Riot also broadened its mining capacity, with the total installed hash rate rising to 22 EH/s in Q2 and the company’s target to achieve 36 EH/s by 2024 end. Furthermore, Riot has recently upped the ante in its acquisition campaign against competitor Bitfarms with the purchase of roughly 10 million more shares in July.
Following the Q2 report, Riot’s share price fell by 1.74% in after-hours trading, reflecting a nearly 33.87% decline in its stock value so far in 2024. In contrast, rival CleanSpark has seen a 47% increase in its stock price, surpassing Riot as the second-largest Bitcoin miner by market cap.
Riot Platforms’ unexpected Q2 loss highlights the severe impact of rising operating costs and the April Bitcoin halving on its financial performance.
Also Read: Riot Acquires Block Mining, JPMorgan Highlights Capacity Boost
