Riot Platforms, one of the world’s largest Bitcoin mining and data center hosting companies, reported record-high revenue in 2023, according to its latest financial report.
Riot’s 2023 Financial Report Analysis
According to its annual report, Riot Platforms posted record total revenue last year of $280.7 million. This figure represents an 8% increase over the $259.2 million earned in 2022.
Riot analyzed the data and found that Bitcoin mining revenue accounted for $189 million (about 67%) of total revenue. Mining revenue increased by more than 20% last year compared to $150 million in 2022.
According to the report, the increase in Bitcoin mining revenue was driven by the company’s increased Bitcoin production and the rise in BTC price. In 2023, Riot Platforms mined 6,626 BTC, a 19% increase over the 5,554 coins produced during the same 12-month period in 2022.
Meanwhile, the company created significant value in other operating segments, including $64.3 million in engineering, $27.3 million in data center hosting, and $100,000 in other services.
Interestingly, Riot’s record revenues were not enough to offset higher spending in 2023, including the company’s mining capacity, labor, and power costs. As a result, the company posted a net loss of $49.5 million in the previous year.
However, it’s worth mentioning that Riot’s net loss declined significantly in 2023, compared to a whopping $509.6 million the previous year.
Jason Les, CEO of Riot Platforms, reacted in a statement:
We are excited to announce the results of Riot 2023. This has proven to be another milestone year in Riot’s continued development as a leading vertically integrated Bitcoin miner. We achieved record results in 2023, reaching an all-time high of $281 million in total revenue, 6,626 Bitcoins produced, and $71 million in power credits earned through our unique power strategy.
How Riot is preparing for Bitcoin Halving
With the Bitcoin halving event less than two months away, conversations are swirling about the BTC mining industry and how miners are preparing for the important event. This halving event is expected to halve miners’ rewards and consequently profits.
In its latest report, Riot stated that its hash rate capacity increased by 28% over the previous year, reaching a record 12.4 EH/s as of December 31, 2023. Interestingly, the Bitcoin mining company aims to increase capacity throughout 2024.
Jason Les said of the company’s plans:
As a leading vertically integrated Bitcoin miner, the development of the Corsicana facility, coupled with MicroBT’s secure supply of state-of-the-art miners and strong balance sheet, provides Riot with the industry’s most secure and visible path to achieve its growth plans. . Our goal is to reach a total hash rate capacity of 28EH/s by the end of 2024, 38EH/s by the end of 2025, and ultimately over 100EH/s.
To be clear, hash rate is a measure of the total computational power used to mine and process transactions on the Bitcoin network.
BTC price at $51,609 on the daily timeframe | Source: BTCUSDT chart on TradingView
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