Riot Achieves $84.8M Revenue Boost in Q3 2024, But Future Hash Rate Capacity Predictions Revised Lower

Riot Platforms, a prominent Bitcoin mining firm, reported a substantial revenue increase of $84.8 million for the third quarter of 2024. This figure marks a remarkable 65% growth compared to the same period in 2023.

• The revenue surge is largely driven by a 159% year-over-year increase in the deployed hash rate, which reached 28 EH/s by the end of the quarter.
• During this quarter, Riot produced 1,104 Bitcoin, maintaining production levels consistent with Q3 2023 despite the recent Bitcoin halving event.

Net Loss and Financial Challenges

Despite the revenue boost, Riot ended the quarter with a net loss of $154.4 million, up from a net loss of $80 million in Q3 2023.

• The loss included an unrealized loss on marketable equity securities amounting to $38 million, non-cash stock-based compensation expenses of $30 million, and $60 million attributed to depreciation and amortization.
• Riot CEO Jason Les expressed optimism about the company's future, noting that Riot holds approximately $1.3 billion in cash, restricted cash, marketable equity securities, and 10,427 Bitcoin.

Future Growth Plans

Les highlighted the company's commitment to expanding its operational capabilities, aiming for a self-mining capacity of 100 EH/s across Texas and Kentucky.

• Riot previously announced the acquisition of Block Mining, a Kentucky-based firm, for approximately $92.5 million, which included $18.5 million in cash and $74 million in common stock.

Revised Hash Rate Capacity Projections

Riot has adjusted its self-mining hash rate capacity expectations, projecting a total capacity of 34.9 EH/s by the end of 2024, down from the earlier estimate of 36.3 EH/s.

• The revision is primarily due to delays in the expansion of the newly acquired Kentucky facilities, which are now expected to become operational in 2025.
• The company anticipates reaching an end-of-year capacity of 46.7 EH/s for 2025, a decrease from the previously projected 56.6 EH/s.
• Full development of the Corsicana Facility is expected to conclude by 2026, with plans to achieve a total hash rate capacity of 65.7 EH/s by the end of that year.

Riot's significant revenue growth in Q3 2024 highlights its operational strength, but the increased net loss and revised hash rate projections indicate challenges ahead. The company's strategic plans for expansion remain a focal point for future growth.