Riot Platforms reduces Q2 loss to $27.7 million

The company was able to reduce its quarterly net loss as Bitcoin production increased.

Riot Platforms, a Bitcoin mining company based in Colorado, reduced its net loss for the second quarter to $27.7 million as it increased Bitcoin production and attained record hash rate capacity.

The cryptocurrency miner posted total revenue of $76.7 million, up 5.2% from Q2 2022, predominantly due to a 27% year-over-year increase in Bitcoin production, which was partially mitigated by a decline in Bitcoin prices, according to the company's August 9 results filing.

Mining revenue of $49.7 million accounted for 64.7% of the company's total revenue for the quarter. Through the firm's power curtailment credits, an additional $13.5 million was made.

Comparatively, its net loss for the second quarter of the previous year was $353.5 million. It was also roughly half of the first-quarter financial loss posted in 2023.

The company produced 1,775 Bitcoin during the quarter, and its average cost to mine a Bitcoin (BTC) in Q2 was $8,389, exceeding the average price in Q1.

The mining company also attained an all-time high hash rate capacity of 10.7 exahashes per second and expects this number to reach 20.1 EH/s by the second quarter of 2024, before reaching 35.4 EH/s in 2025.

The estimates are based on the late-June acquisition of 33,280 mining machines, with the 35.4 EH/s figure presuming Riot will exercise its option to acquire an additional 66,560 miners at the same price and terms in the near future.

Even though Riot's share price fell 4.42 percent earlier in the day, it fell another 0.86 percent shortly after the company's results were released.