Riot Platforms faced a significant loss of $84.4 million in the second quarter, marking a 52% decline in Bitcoin production compared to the same period last year. Despite this setback, the company managed to generate $70.0 million in revenue for the quarter, slightly lower than the previous year’s $76.7 million.
The challenging environment following the Bitcoin network’s recent ‘halving’ event played a role in the financial results. The net loss per share for the three months ending June 30 was $0.32.
The loss was primarily driven by a decrease in the fair value of Bitcoin by $76.4 million, a non-cash stock-based compensation expense of $32.1 million, and depreciation and amortization of $37.3 million. The company also reported a 52% decline in Bitcoin production, dropping to 844 Bitcoin from 1,775 in the second quarter of 2023.
Despite the decline in Bitcoin production, Riot Platforms maintained strong gross margins, with revenue on par with the previous year. The ‘halving’ event and increased network difficulty resulted in a higher average direct cost to mine Bitcoin, rising to $25,327 from $5,734 per Bitcoin in the second quarter of 2023.
Riot Platforms reported $13.9 million in power credits for the quarter, including $4.4 million from demand response programs, which helped reduce its average energy cost. The company ended the second quarter with $646.5 million in working capital, including $481.2 million in cash on hand, and held 9,334 unencumbered Bitcoin valued at approximately $585.0 million.
Looking ahead, Riot Platforms aims to achieve a total self-mining hash rate capacity of 36 EH/s by the end of 2024 and increase its 2025 deployed hash rate guidance from 40 EH/s to 56 EH/s. CEO Jason Les highlighted the successful energization of the second large-scale facility in Corsicana, Texas, with plans to further expand operations.
In July, Riot Platforms acquired Block Mining Inc., a vertically integrated Bitcoin miner in Kentucky, strengthening its growth pipeline. The acquisition brought 60 MW of power capacity across two facilities, with potential expansion to over 300 MW by the end of 2025.
Riot Platforms intends to leverage its strong balance sheet and experienced development teams to continue building top-tier Bitcoin mining facilities, despite the challenges faced in the second quarter.