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Mar 31, 2023

Riot Q1 2023 Earnings Report

Riot reported a decrease in revenue due to lower Bitcoin prices, but achieved record Bitcoin production and hash rate capacity.

Key Takeaways

Riot Platforms reported a total revenue of $73.2 million for Q1 2023, a decrease compared to Q1 2022 due to lower Bitcoin prices. However, the company achieved record Bitcoin production of 2,115 and a hash rate capacity of 10.5 EH/s. The company is nearing completion of miner deployment at its Rockdale Facility and is working to enhance operating efficiency.

Total revenue was $73.2 million, compared to $79.8 million in the same period last year.

Bitcoin production reached 2,115, up from 1,405 in the same period last year.

The company maintained a strong financial position with $158.3 million in cash on hand and $202.0 million in Bitcoin.

Riot achieved an all-time record hash rate capacity of 10.5 EH/s as of April 30, 2023.

Total Revenue
$73.2M
Previous year: $79.8M
-8.3%
EPS
$0.04
Previous year: $0.3
-86.7%
2.12K
Previous year: 1.41K
+50.5%
Gross Profit
$10.1M
Previous year: $34.2M
-70.4%
Cash and Equivalents
$158M
Previous year: $114M
+39.3%
Free Cash Flow
-$18.6M
Previous year: -$82.4M
-77.4%
Total Assets
$1.25B
Previous year: $1.54B
-18.9%

Riot

Riot

Forward Guidance

Riot Platforms is continuing its 400 MW expansion at the Rockdale Facility, expected to be completed in Q2 2023, and anticipates achieving a hash rate capacity of 12.5 EH/s in the second half of 2023.

Positive Outlook

  • Completion of water-cooling pads installation in Building D.
  • Installation of evaporative water wall system framing in Building E.
  • Building F has been brought back online.
  • Ongoing 400 MW expansion at the Rockdale Facility.
  • Expects to have a total of 94,976 miners deployed with a hash rate capacity of approximately 10.6 EH/s.

Challenges Ahead

  • Damage to Buildings F and G at our Rockdale Facility due to severe winter storms.
  • Delay in achieving 12.5 EH/s in total self-mining hash rate capacity in Q1 2023.
  • 17,040 miners currently offline in Building G.
  • The net loss for the quarter included non-cash stock-based compensation of $2.2 million.
  • The net loss for the quarter included non-cash charges of $4.5 million related to impairment of our Bitcoin.