Riot Platforms (NASDAQ:RIOT) Inc., a leading company in the cryptocurrency industry, has reported significant gains in its Q3 financial results, released on Tuesday. The company’s strategic growth and operational efficiencies have led to increased Bitcoin production and lower mining costs, with revenue growing from $46.3 million to $51.9 million year-on-year.
Riot mined 1,106 Bitcoins at a cost of $5,537 each, significantly below the industry average. These figures demonstrate Riot’s position as a leader in low-cost Bitcoin production. The company also holds $290 million in cash reserves and a large Bitcoin stockpile.
The total revenue was constituted by $31.2 million from Bitcoin mining, $5.1 million from Data Center Hosting, and $15.5 million from Engineering revenue. Despite a strategic shift from legacy contracts causing a dip in Data Center Hosting revenue, the engineering sector maintained steady income.
In Q3, Riot expanded its Bitcoin yield and improved liquidity through strategic stock offerings. It raised $100 million by selling 10.2 million shares of common stock, strengthening its position ahead of the anticipated ‘halving’ event in the crypto mining sector.
Riot Platforms also earned $49.6 million in power curtailment credits, demonstrating its innovative approach to cost management and efficiency maximization. These credits represent a significant increase from the $13.1 million earned in Q3 of the previous year, equivalent to approximately 1,757 Bitcoin.
Despite facing infrastructure challenges such as the Texas winter storm damages, Riot has shown operational resilience and adaptability. The company projects a hash rate capacity of 12.5 EH/s for Q4 and beyond.
To further enhance its operations, Riot entered into a long-term purchase agreement with MicroBT Electronics Technology Co., LTD for the deployment of 33,280 Bitcoin miners by mid-2024. This move could potentially increase Riot’s self-mining hash rate capacity to 20.2 EH/s.
However, the company recorded a net loss of $45.3 million for the quarter, including significant non-cash expenses like stock-based compensation, depreciation, and impairment of Bitcoin. Despite this, Riot’s liquidity remains robust with $290 million in cash and 7,327 Bitcoin on hand, representing nearly $500 million in combined liquidity.
Riot’s ATM offering in August 2023 raised considerable capital with net proceeds of approximately $126.0 million from share sales during Q3 and an added $101.1 million post-quarter end. Adjusted EBITDA for Q3 2023 was reported as $31.6 million, showing significant growth from the same period in 2022.
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