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Jun 30, 2024
Riot Q2 2024 Earnings Report
Riot's revenue decreased due to lower Engineering revenue, partially offset by increased Bitcoin Mining revenue; the company also nearly doubled installed hash rate.
Key Takeaways
Riot Platforms reported $70.0 million in total revenue for Q2 2024, with a decrease primarily driven by a $9.7 million decrease in Engineering revenues offset by a $6 million increase in Bitcoin Mining revenue. The company's deployed hash rate grew to 22.0 EH/s as of June 30, 2024. Riot also acquired Block Mining Inc. to expand growth pipeline and operational expertise.
Total revenue was $70.0 million, compared to $76.7 million in the same period last year.
Bitcoin Mining revenue reached $55.8 million, up from $49.7 million in the same period last year.
The average direct cost to mine Bitcoin, inclusive of power credits, was $25,327.
Riot maintained a strong financial position with $646.5 million in working capital, including $481.2 million in cash on hand.
Riot
Riot
Forward Guidance
Riot anticipates achieving a total self-mining hash rate capacity of 36 EH/s by the end of 2024.
Positive Outlook
- The Corsicana Facility will have a total capacity of 1 GW when fully developed.
- The recently energized substation will power the initial 400 MW phase of development of the Corsicana Facility.
- This initial phase is expected to add 16 EH/s to Riot’s self-mining capacity by the end of 2024.
- The acquisition immediately increases Riot’s hash rate by 1 EH/s and establishes an additional arm of growth for Riot in new jurisdictions and energy markets, starting in Kentucky.
- The acquisition includes 60 MW of existing operational capacity with potential to expand to over 300 MW in total in Kentucky.
Challenges Ahead
- Unaudited estimates of Bitcoin production.
- Future hash rate growth (EH/s).
- The anticipated benefits, construction schedule, and costs associated with the Corsicana site expansion.
- Expected schedule of new miner deliveries.
- Potential negative impacts on results of Bitcoin production due to the variance in mining pool rewards.