Riot Mined 6,626 Bitcoin, Clinching Record $281M Revenues in 2023
Rebeca Moen Feb 23, 2024 13:12
Riot Platforms saw a $280.7 million revenue boost in 2023, attributed to increased Bitcoin production, higher average prices, a strong balance sheet, and enhanced hash rate capacity.
Riot Platforms, Inc. (NASDAQ: RIOT), a vertically integrated Bitcoin mining company, announced its full-year financial results for 2023, marking significant operational growth and financial performance. According to the release dated February 22, 2024, Riot generated a total revenue of $280.7 million, a year-over-year increase from $259.2 million in 2022. This rise is primarily attributed to an increase in Bitcoin production and a higher average price of Bitcoin year over year.
Operational Growth
The company reported a 19% increase in Bitcoin production, with a total of 6,626 Bitcoin mined compared to 5,554 in the previous year. Notably, Riot's strategic power strategy contributed to earning $71.2 million in power credits from the support of the ERCOT grid in Texas during several weather-related supply/demand issues in 2023.
Strategic Developments
Riot has also completed the expansion of its 700 megawatt Rockdale Facility and continued the development of the Corsicana Facility, which is slated to begin energization at the end of Q1 2024. Once fully developed, it will be recognized as the world's largest dedicated Bitcoin mining facility. Additionally, Riot outlined a partnership with MicroBT to secure a fixed-price supply of latest-generation miners, bolstering the efficiency of Riot's mining operations.
Financial Health
The company ended the year with a robust balance sheet, including approximately $597 million in cash and 7,362 Bitcoin, valued at about $311 million based on year-end prices, with nominal long-term debt. Riot's average cost to mine Bitcoin in 2023, net of power credits, was $7,539 per Bitcoin, a decrease of 33% from the previous year.
Hash Rate Capacity
Riot increased its hash rate capacity by 28% to 12.4 exahash per second (EH/s) as of December 31, 2023. The company has set targets to reach 28 EH/s by the end of 2024 and 38 EH/s by the end of 2025.
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