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Bitcoin mining company, Riot Platforms, reported a 65% year-on-year increase in earnings, resulting in revenue of $84.8 million this quarter due to increased deployed hash rate. However, the company had a net loss of $154 million this quarter, partly due to higher operating expenses. They mined Bitcoins at an average cost of $35,376 while currently priced at approximately $72,000, attributing this to energy efficiency. Plans for expanding power capacity and hash rate have been curtailed due to slow growth in its US sites. Unfortunately, shares have dropped by 3.6% to $9.86, marking an 85% decrease since 2021.

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Riot Platforms, a big player in the world of Bitcoin mining, recently saw a 65% boost in its earnings from the previous year. However, it had to curb expansion plans due to issues at its US locations.

CEO Jason Les revealed they made $84.8 million this quarter, marking a significant growth of 65% from the same quarter in 2023. This was mainly due to a hike in the deployed hash rate, which allowed them to mine 1,104 Bitcoin this quarter.

Despite Bitcoin halving, the company still witnessed substantial growth during the first full quarter. This was largely driven by a 159% increase in the deployed hash rate from last year, reaching 28 exahashes per second (EH/s) by the end of September.

But it’s not all good news – the company reported a net loss of $154 million for the quarter, an increase of 92% from the net loss in Q3 2023. Reasons for this include lower power credits, higher operating expenses, and the touted Bitcoin halving impact.

Remarkably, the average cost to mine one Bitcoin was $35,376, roughly half of its current price of about $72,000. Riot Platforms attributes this to its energy efficiency. On top of this, the company claimed a strong balance sheet, with roughly $1.3 billion in cash, equity securities, and 10,427 Bitcoins (worth about $750 million).

Looking at the future, Les expressed enthusiasm about progress. The company is aiming to boost its power capacity and hash rate across Texas and Kentucky. However, its hash rate projections for the end of 2024 were reduced because of slower-than-expected growth at its newly acquired Kentucky locations.

Plus, the Bitcoin miner predicts a year-end 2025 mark of 46.7 EH/s, falling short of earlier expectations due to slower expansion and unexpected delays at its Corsicana Facility. If everything goes according to plan, the company projects a hash rate capacity of 65.7 EH/s by end of 2026.

Despite all these, Riot Platforms’ share price dipped 3.6% to trade at $9.86. Overall, share prices have tumbled 32% from the beginning of the year, and are down a whopping 85% from their $70 peak in 2021.

Source: Cointelegraph