Riot Platforms posts 52% decrease in Bitcoin production for Q2

Bitcoin mining firm Riot Platforms has released its Q2 financial results, showing a decline in the amount of cryptocurrencies mined due to the recent halving.

Colorado-based Bitcoin (BTC) mining firm Riot Platforms has announced its Q2 financial results, highlighting a significant decrease in cryptocurrency mined, attributed to the halving event that took place in early April.

The company reported total revenue of $70 million for the quarter ending July 31, representing an 8.7% decrease compared to the same period in 2023. Riot Platforms attributed the revenue decline primarily to a $9.7 million decrease in engineering revenues, which was partially offset by a $6 million increase in Bitcoin mining revenues.

During the quarter, the firm mined 844 BTC, representing a more than 50% decrease from Q2 2023, citing the halving event and increased network difficulty as the primary factors behind the decline. Riot Platforms reported a net loss of $84.4 million, or $0.32 per share, missing Zacks Research’s estimate of a loss of $0.16 per share.

Halving increases competitive pressure

The Colorado-based firm announced that the average cost of mining one BTC in Q2, including power credits, rose to $25,327, a significant 341% increase from $5,734 per BTC in the same quarter of 2023. Despite this significant increase in production costs, the firm remains optimistic about remaining competitive through recent deals.

For example, following its recent acquisition of crypto mining firm Block Mining, Riot raised its deployed hash rate guidance from 31 EH/s to 36 EH/s by the end of 2024, while its 2025 guidance increased from 40 EH/s to 56 EH/s.

Riot Platforms’ hashrate growth projections through 2027 | Source: Riot Platforms

Commenting on the company’s financials, Riot CEO Jason Les said that despite the halving, the mining firm had achieved “significant operational growth and execution of our long-term strategy.”

“Despite this reduction in current production for all of its Bitcoin miners, Riot generated $70 million in revenue in the quarter and maintained strong gross margins in our core Bitcoin mining business.”

Jason Les

Following its Q2 financial report, Riot Platforms shares fell 1.74% to $10.19, according to Google Finance data. Meanwhile, the American miner continues to trail Canadian rival Bitfarms and recently bought an additional 10.2 million BITF shares, taking its stake in Bitfarms to 15.9%.

As Crypto.news previously reported, Riot first announced a $950 million takeover offer for Bitfarms in late May, claiming that Bitfarms’ founders were not acting in the best interests of all shareholders. They noted that their offer was rejected by the Bitfarms board without significant buy-in.

Bitfarms, in turn, said Riot’s offer “significantly undervalued” its growth prospects. Bitfarms subsequently implemented a shareholder rights plan — also known as a “poison pill” — to protect the strategic review process from hostile takeover attempts.