In its Q1 2024 earnings report, Riot Platforms Inc. (NASDAQ: RIOT), a mining company specializing in mining Bitcoin, revealed that its first quarter revenue was in excess of $79.3 million. This revenue increase is modest when compared to the earnings for the same quarter last year, which saw the company bag $73.2 million.
It should be noted that the growth in earnings came against the backdrop of reduced BTC mined. In Q1 2023, the company mined 2,115 BTC while the number dropped to 1,364 BTC in the just-ended quarter. Logically, one would expect revenue to drop if the itcoins mined have reduced by such a notable fraction.
However, the drop in coins mined was offset by a 131% rise in BTC’s price. This price hike more than compensated for the drop in yield by the mining activities. Per a company statement, difficulties in the Bitcoin network caused the reduction in Bitcoins mined during the quarter.
The company also revealed that it incurred costs amounting to $23,034 to mine a single BTC. Compared to the unit cost for the same BTC in Q1 2023 of only $9,438, the company saw a spike of approximately $13,500.
Credits for power curtailment earned Riot Platforms $5.1 million. This was higher than the $3.1 million the company earned in quarter one of last year. The company also availed data on the earnings for the different segments of the business, with myself-mining generating 94% ($74.6 million) of the revenues for the quarter while engineering brought in $4.7 million during the quarter. In comparison, myself-mining generated $48 million in the first quarter of last year while engineering raked in $16.7 million.
Jason Les, Riot Platforms CEO, commented that its $211.8 million net income for the quarter, coupled with a $0.82 earning for each share, set new records for the company’s quarterly results. He added that the EBITDA-adjusted earnings of $245.7 million also marked another Riot Platforms record. These numbers, Les asserted, rounded off the commendable financial performance Riot Platforms had registered.
The CEO noted that new mining machines had been installed at the company’s facility at Corsicana. The equipment had started hashing, and the business is on course to ramp up its hash rate to 31 EH/s before this year comes to an end. This mining capacity will be further boosted by 28 EH/s once an additional three mining machines are installed and start working. Once all these machines are operational, the overall hash rate will hit 41 EH/s.
All in all, the company looks set for a strong performance for the rest of this year and beyond.
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