Riot Platforms Records Record Q1 Net Income; Falls Short of Revenue Estimates, Plans Hash Rate Increase
Summary:
Bitcoin mining company, Riot Platforms, reported a record net income of $211.8 million for Q1 2024, marking a 1,000% increase from the same period last year. Despite this, the company fell short of analyst revenue estimates. The financial growth is partially attributed to a 131% surge in Bitcoin's price. The firm also announced plans to increase its hash rate capacity from the current 12.4 exahashes per second (EH/s) to 31 EH/s by year-end and further to 41 EH/s by 2025 following the full deployment of its new facility in Texas.
Riot Platforms, a Bitcoin mining company, has announced an impressive Q1 2024 net income of $211.8 million, demonstrating a 1,000% increase from the previous year and setting a new corporate record. However, it fell short of projected revenues made by analysts. Data released on May 1 suggests a 55.4% yearly increase in mining revenue, totaling $74.6 million, primarily due to a 131% price rise in Bitcoin, with total revenue amounting to $79.3 million. This is a 14% underperformance of Zacks Research firm's expectations. The company also admitted to slowed growth due to increased mining costs and decreased Bitcoin production, a consequence of Bitcoin's elevated network complexity and hash rate. According to Riot's financial statement for Q1 2024, Riot mined 1,364 BTC - a 36% decrease on the same period last year. The average cost of mining a single Bitcoin rose to $23,000, a 144% rise primarily attributed to an 89% increase in the global network hash rate. Recently, Riot announced the forthcoming opening of a new facility in Corsicana, Texas, predicted by CEO Jason Les to be the world's largest dedicated Bitcoin mining establishment once fully operational. The firm further announced the expected increase in its hash rate capacity from the current 12.4 exahashes per second (EH/s) to 31 EH/s by year's end, with further projections of 41 EH/s when the Corsicana facility is fully functional in 2025. Ultimately, Riot aims to achieve 100 EH/s by 2027 or just thereafter. Despite these developments, Riot's share price experienced a 2.87% dip on May 1, closing at $9.82, though it rose 1.1% in after-market trading. Such fluctuations come as Bitcoin miners are adapting to a recent reduction of mining rewards, from 6.25 BTC to 3.125 BTC (roughly $180,600 in current value) following the April 20 halving event.
Published At
5/2/2024 3:22:40 AM
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