Riot Achieves $84.8M Revenue Increase in Q3 2024, But Future Hash Rate Capacity Predictions Revised Downward

Bitcoin mining company Riot reported revenue of $84.8 million in the third quarter of 2024, representing a 65% increase over the same quarter of 2023.

This growth can be attributed to the 159% year-over-year increase in the deployed hash rate which reached 28 EH/s at the end of the quarter.

Riot’s third quarter financial results

According to the official press release, the increased hash rate has allowed Riot to maintain a high operational output, producing 1,104 Bitcoin during the quarter. Notably, this production level aligns with the company’s Q3 2023 Bitcoin production, even in the context of the recent halving event.

However, the quarter ended with a net loss of $154.4 million, which reflects an increase from a net loss of $80 million in the same quarter in 2023. Riot reported that this figure was made up of an unrealized loss on marketable equity securities of $38 million, $30. million related to non-cash stock-based compensation expense and $60 million attributable to depreciation and amortization.

In a statement, Riot CEO Jason Les revealed that the mining company ended the quarter with approximately $1.3 billion in cash, restricted cash, marketable equity securities and 10,427 Bitcoins. The executive added:

“Looking forward, I’m incredibly excited about our future path as our teams continue to work to develop and deploy even more hash rate and power capacity in Texas and Kentucky, towards Riot’s next goal of reaching 100 EH/ s of automining capacity.”

Riot had previously announced the acquisition of Kentucky firm Block Mining in a deal worth around $92.5 million. The deal included $18.5 million in cash from Riot reserves and $74 million in Riot common stock.

Hash rate projections revised

Riot has revised its automining capacity expectations, now forecasting a total capacity of 34.9 EH/s by the end of 2024, down from the previously projected 36.3 EH/s. This adjustment is primarily due to delays in the expansion of the recently acquired Kentucky facility, which is expected to be operational in 2025 instead of 2024.

The company said it expects year-end capacity of 46.7 EH/s by 2025, down from a previous estimate of 56.6 EH/s. Meanwhile, full development of the Corsicana facility is expected to be completed by 2026 along with Kentucky expansion plans to reach a total hash rate capacity of 65.7 EH/sa by the end of this year .

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