Riot Blockchain reports $366.3m Q2 loss

Prominent Bitcoin miner’s BTC production rises by 107% year-on-year despite ‘crypto winter’

Crypto mining rig                                 
Riot Blockchain’s cash balance has risen by $157m from the first quarter – Photo: Shutterstock
                                

Riot Blockchain stock traded down on Wednesday after the Bitcoin miner released mixed second quarter figures. 

Riot Blockchain suffers $366.3m loss in Q2

The company suffered a quarterly loss of $366.3m (£304m) or $0.50 per share. Not only did this loss constitute a marked reversal from the $19.3m or $0.13 per share earnings reported in the second quarter of 2021, but it was also far larger than analysts had forecast. The Zacks Consensus Estimate for the quarter had predicted a $0.13 loss. 

Riot missed the Zacks Consensus Estimate for revenue by 5.55%, reporting revenue of $72.9m for the quarter. This figure was nonetheless a significant increase from the $34.3m revenue that the company recorded a year earlier. 

Riot’s Bitcoin production rose by 107% year-on-year, from 675 Bitcoins (BTC) worth around $16m in the second quarter of 2021, to 1,395 BTC worth $32.6m. 

Riot endures crypto winter by expanding BTC production

Although the miner has fared better than many other competitors, helped in part by its expanding miner fleet having improved its hash rate, it was not immune to the ravages of the recent cryptocurrency market rout. Riot had to sell $14.4m worth of Bitcoin, in addition to raising $267m by selling 30.6 million shares on the market. 

Despite this, the miner holds assets valued at $496.4m. $270.5m of this figure is cash-on-hand. The firm’s cash balance has increased by around $157m since the previous quarter.  

CEO Jason Les hailed the firm’s “resilience”, stating: “We continued to make substantial progress in executing towards our ambitious growth plans… which will further reduce our operating costs. Going forward, we will continue to focus on executional excellence as we work in pursuit of developing Riot into the world’s leading Bitcoin-driven infrastructure platform.”

As 10:40 EDT (UTC -4) on 17 August 2022, Riot stock traded down 7.3% at $8.50, down 62% since the start of the year.

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