Riot miner records quarterly loss for the first time since 2022
The result was double the loss projected by Zacks analysts
![Riot miner records quarterly loss for the first time since 2022](https://storage.getblock.net/source/1/b3w7mu7NzmbP14MrOj_hGjGhlnrP1758.webp)
01.08.2024 - 11:40
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3 min
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What’s new? US-based miner Riot Blockchain (RIOT), with a capitalization of $3,01 billion, has released its Q2 earnings report, reporting a loss of $84,4 million or $0,32 per share, double the loss prediction by research firm Zacks (loss of $0,16 per share). This is the first loss reporting period for the company since Q4 2022.
What else is known? The losses are largely due to higher selling, general, and administrative expenses. They totaled $61,2 million, an increase of $41,4 million compared to Q2 last year.
The company’s revenue fell by 8,75% year-over-year to $70 million. The drop was due to lower engineering revenue, but it was partially offset by an increase in mining revenue.
For example, Riot’s mining revenue grew by 12%, helped by a nearly 100% increase in the bitcoin price between June 30, 2023, and June 30, 2024.
Meanwhile, BTC mining volume fell by 52% during the quarter, with the company mining 844 coins. This is largely attributed to the April halving, the fourth halving in the history of the Bitcoin network. This event happens every four years and halves the reward for mining blocks, this time it was cut to 3,125 BTC.
At the same time, Riot’s mining costs increased by 340%: from $5734 to $25 372 per coin. This is explained by both halving and a 68% increase in the blockchain hashrate.
Riot itself also doubled its hashrate in Q2, to 22 EH/s. The company plans to reach its target of 36 EH/s by the end of this year.
![Solo miner mined a block of BTC and earned $206 000 — his odds were 1 in 1,3 billion](https://storage.getblock.net/source/1/VxYTWG2jXPSbIENTVlJ06ED2CiyY3CyP.png)
Solo miner mined a block of BTC and earned $206 000 — his odds were 1 in 1,3 billion
The capacity of the Bitaxe device used by the network participant is only 500 Gh/s
Riot also intends to take over Canadian competitor Bitfarms. In mid-June, it offered to buy out Bitfarms for $950 million but was turned down, and has been actively buying BITF shares ever since. In July alone, Riot bought 10 million BITF, increasing its stake in Bitfarms to 16%.
Bitfarms sought to prevent the takeover and for this purpose resorted to the tactic of poison pill: when additional shares are issued to existing holders at a reduced cost, which allows dilution of the competitor’s share. However, following Riot’s complaint, a Canadian court ordered a halt to these actions.
Riot is the third-largest miner by capitalization, behind Marathon Digital (MARA) and CleanSpark (CLSK). RIOT shares are trading at $10,19 on the Nasdaq, having lost 1,74% overnight. Since the beginning of the year, the decline amounted to 40,3%. In turn, CLSK has grown by 30% this year, which allowed the company to displace Riot from the second place.
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