BTC Miner Riot Platforms’ Revenue Surged to $280 Million in 2023

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Key Takeaways

  • In 2023, Riot Platforms saw a 19% uptick in its Bitcoin production compared to 2022
  • In 2023, Riot’s Bitcoin mining cost, net of self-mined power credits, averaged $7,539 per Bitcoin, showing a 33% decrease from 2022’s $11,225.

Riot Platforms, a major player in Bitcoin mining, revealed impressive financial performance for the fiscal year 2023. The company’s annual report for the year 2023 indicates a substantial 8% increase in total revenue compared to the previous year, soaring from $259.2 million to $280.7 million.

A significant chunk of Riot’s revenue, approximately 67%, came from Bitcoin mining operations, amounting to $189 million. This represents a solid 20% surge from the prior year, mainly fueled by increased Bitcoin production and the surging value of Bitcoin throughout 2023.

In a notable move in December 2023, Riot Platforms made a substantial acquisition, snapping up 66,560 mining rigs from MicroBT. This acquisition, deemed one of the largest expansions of hash rate in the company’s history, was strategically timed ahead of the anticipated Bitcoin halving in April.

Despite facing challenges such as escalating expenses associated with expanding mining capacity, growing headcount, and mounting power costs, Riot Platforms managed to boost its Bitcoin production by an impressive 19% year-over-year, reaching 6,626 BTC in 2023. Notably, this achievement was made while significantly reducing power usage by over 95% during peak energy demand periods.

In addition to Bitcoin mining revenue, Riot Platforms also generated revenue streams from engineering services ($64.3 million), data center hosting ($27.3 million), and other services (a nominal $0.1 million). However, these revenues weren’t enough to offset the increased expenses incurred during the fiscal year, resulting in a net loss of $49.5 million. Nevertheless, this represents a significant improvement from the net loss of $509.6 million reported in 2022.

Riot Platforms also secured $71.2 million in power credits through support from the ERCOT grid in Texas during weather-related demand surges, equivalent to around 2,497 BTC at average prices. The company’s CEO, Jason Les, expressed satisfaction with the performance, highlighting the record results achieved in 2023, including all-time highs in total revenues, Bitcoin production, and power credits earned.

Looking ahead, Riot Platforms aims to continue its growth trajectory, with plans to expand its hash rate capacity further. By the end of 2024, the company targets a total hash rate capacity of 28 EH/s, with ambitions to reach 38 EH/s by the end of 2025 and ultimately surpass 100 EH/s in the future.

In related news, Riot Platforms, along with the Texas Blockchain Council, successfully secured a temporary suspension of the U.S. Department of Energy’s emergency survey of energy use by crypto miners following a lawsuit. This move comes amidst heightened scrutiny of digital cryptocurrency miners due to concerns regarding their impact on power grids, greenhouse gas emissions, and energy-intensive operations.

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Saniya Raahath
Saniya Raahath

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