This Wall Street Bitcoin Miner Just Amassed $1.65 Billion In BTC
Riot Platforms, a Wall Street-listed Bitcoin (BTC) mining operator (NASDAQ: RIOT), announced record financial results for 2024, reporting $376.7 million in total revenue and $109.4 million in net income. These results were achieved despite significant challenges in the industry, including the dwindling Bitcoin block reward and significant increases in hashrate, as well as a competitive global environment.
Riot's Bitcoin Mining Platforms on Wall Street Report Record Revenue
The Bitcoin mining company ended the year with a deployed hash rate of 31.5 EH/s and increased its Bitcoin holdings to 17,722, up 141% year-on-year.
Jason Les, CEO of Riot Blockchain
“Riot had a remarkable year in 2024, generating record revenue of $376.7 million and net profit of $109.4 million,” said Jason Les, CEO of Riot. “These results stand out especially in light of the Bitcoin halving in April 2024 and a 67% increase in global hashrate during the year.”
In 2024, the company secured power for its Corsicana Facility and acquired Block Mining and E4A Solutions, an electrical services company. Riot's power strategy has been successful, with average power costs of 3.4 cents per kilowatt-hour across all facilities for the year.
Despite these gains, the company has faced increased production costs. Riot reported that the average cost of mining one Bitcoin was $32,216 in 2024, up significantly from $3,831 in 2023. This increase was due to a 53% reduction in capacity, the effects of the halving, and a significantly increased global competitive environment.
More income, but less bitcoins
During the year, the company mined 4,828 bitcoins, down from 6,626 in 2023. Bitcoin mining revenue was $321.0 million, up significantly from $189.0 million in the previous year, primarily driven by rising bitcoin prices and increased operational hash power.
In December 2024, Riot completed a convertible senior note offering that generated $579 million in net proceeds, which the company used to purchase an additional 5,784 bitcoin. This strategic move resulted in the company reporting a “39% bitcoin return” for shareholders in 2024.
Looking ahead to 2025, Riot is exploring opportunities in the areas of AI and high-performance computing (HPC), particularly for its energy assets at the Corsicana facility. The company noted that the facility has one gigawatt of total capacity, of which 600 megawatts are currently unused, making it a potentially valuable asset near the Dallas metropolitan area.
“Our efforts over the past year put us in an exceptionally strong position and focused on pursuing exciting new opportunities to maximize shareholder value, particularly in the AI/HPC space,” Les added.
$1.65 billion in Bitcoin
Riot maintained a healthy financial position at year-end with $439.1 million in working capital, including $277.9 million in cash and $134.3 million in marketable securities. Based on the December 31, 2024, Bitcoin price of $93,354, the company's Bitcoin assets were valued at approximately $1.65 billion.
The company's engineering revenue segment declined to $38.5 million from $64.3 million in 2023. The decline was primarily due to delays in completing a major manufacturing contract due to supply chain issues.
Last week, two other public Bitcoin miners also released earnings reports. Phoenix Group, the first BTC miner to list on a UAE exchange, reported an increase in mining revenue, but overall revenue fell nearly 30% to $206 million. Meanwhile, HIVE Digital Technologies reported revenue of $29.2 million.
Source: cryptonews.net
