Riot Platforms Confirms Growth Despite Missing Financial Estimates
Bitcoin mining company Riot Platforms has released its third quarter financial report, showcasing notable improvements despite missing earnings and sales estimates. During the quarter, the company generated 1,106 Bitcoins, marking an increase compared to the same period in 2022 when they produced 1,042 Bitcoins. The improvement in Bitcoin production was driven by a rise in deployed miners, partially offset by increased curtailment due to the company’s power strategy and the growing difficulty of the Bitcoin network. Riot Platforms experienced a surge in total revenue, reaching $51.9 million compared to $46.3 million during the same period in 2022. The increase can be attributed to both higher Bitcoin production and higher average Bitcoin prices, which averaged $28,230 per Bitcoin for the quarter, representing a 33% increase compared to the previous year.
Riot’s Average Cost to Mine BTC and Capital Raises
The average cost to mine Bitcoin for Riot Platforms was $6,141 during Q3, a significant improvement compared to $8,227 per Bitcoin in the same period of 2022. The company also earned $49.6 million in power curtailment credits, a substantial increase from the $13.1 million earned in the same quarter of the previous year. Riot Platforms also successfully raised significant capital through the sale of its common stock under its 2023 At-the-Market Offering, garnering net proceeds of approximately $126.0 million during the third quarter, and an additional $101.1 million after September 30, 2023, totaling over $200 million raised through the sale of shares.
As reported, Bitcoin miners recorded over 10% stock growth last week as the leading cryptocurrency surged past $35,000, close to its 17-month high. On Friday, Marathon Digital Holdings posted a 10.54% uptick in its share price, trading at $9.86 while Riot Platforms and CleanSpark have seen their share price increase by 10.68% and 12.08%, respectively. Despite missing some targets, Riot Platforms’ continued growth and strategic operations seem to position the company as a leading low-cost producer of Bitcoin.