This Wall Street Bitcoin Miner Just Hoarded $1.65 Billion in BTC

Riot
Platforms, the publicly listed Bitcoin (BTC) miner from Wall Street (NASDAQ:
RIOT), announced record financial results for 2024, reporting $376.7 million in
total revenue and $109.4 million in net income. The results come despite facing
significant industry headwinds including Bitcoin’s halving and a substantial
increase in hash rate or global competition.

Wall Street Bitcoin Miner Riot
Platforms Posts Record Revenue

The Bitcoin
mining company finished the year with a deployed hash rate of 31.5 EH/s and increased
its Bitcoin holdings to 17,722, up 141% from the previous year.

“Riot
had a remarkable year in 2024, generating record revenue of $376.7 million and
net income of $109.4 million,” said Jason Les, CEO of Riot. “These
results are particularly noteworthy in the context of the Bitcoin network’s
‘halving’ in April of 2024, and an increase in global hash rate of 67% over the
course of the year.”

In 2024,
the company energized its Corsicana
Facility and acquired Block
Mining and E4A Solutions, an electrical engineering services company.
Riot’s power strategy proved effective, with an average all-in power cost of
3.4 cents per kilowatt hour across all facilities during the year.

Despite
these achievements, the company faced higher production costs. Riot reported an
average cost to mine each Bitcoin of $32,216 in 2024, a significant increase
from $3,831 in 2023. This rise was attributed to a 53% decrease in power
credits, the impact of the halving event, and the substantial increase in
global network competition.

More Money, But Less
Bitcoins

The company
produced 4,828 Bitcoin during the year, down from 6,626 in 2023. Bitcoin mining
revenue reached $321.0 million, a significant increase from $189.0 million in
the previous year, driven primarily by higher Bitcoin prices and increased
operational hash rate.

In December
2024, Riot completed a convertible senior notes offering that raised $579
million in net proceeds, which the company used to purchase an additional 5,784
Bitcoin. This strategic move contributed to what the company described as a
“39% Bitcoin yield” for shareholders in 2024.

Looking
ahead to 2025, Riot
is exploring opportunities in the AI and high-performance computing (HPC)
sectors, particularly for its power assets at the Corsicana Facility. The
company highlighted that this facility has one gigawatt of overall capacity,
with 600 megawatts currently unutilized, positioning it as a potentially
valuable asset near the Dallas metropolitan area.

“Due to our
efforts over the prior year, we are in an exceptionally strong position and
focused on executing on the exciting opportunities ahead of us to maximize
shareholder value, particularly on the AI/HPC front,” Les added.

$1.65B of Bitcoin Holdings

Riot
maintained a strong financial position at year-end with $439.1 million in
working capital, including $277.9 million in cash and $134.3 million in
marketable equity securities. Based on the December 31, 2024 Bitcoin price of
$93,354, the company’s Bitcoin holdings were valued at approximately $1.65
billion.

The
company’s engineering revenue segment saw a decline, generating $38.5 million
compared to $64.3 million in 2023. This decrease was primarily attributed to
delays in a large manufacturing contract due to supply chain constraints.

Last week,
two other publicly traded Bitcoin miners also released their earnings reports.
Phoenix Group, the first UAE-listed BTC producer, reported
higher mining revenue, but total revenue dropped nearly 30% to $206
million. Meanwhile, HIVE Digital Technologies reported
revenue of $29.2 million.

This article was written by Damian Chmiel at www.financemagnates.com.
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