Riot Platforms’ Q3 Revenue Jumps 65% Amid Setbacks in Mining Expansion Plans

Riot Platforms, a US based Bitcoin mining company, reported 65% year over year revenue growth in Q3 2024. The revenue of $84.8 million is a testament to Riot’s ability to weather the storm despite being unable to expand its US mining infrastructure.

The quarter was driven by increased hashrate capacity which allowed them to mine 1,104 Bitcoin, same as last year, despite the Bitcoin halving.

The company lost $154 million or $0.54 per share, up 92% from Q3 2023. Riot CEO Jason Les said this was due to reduced power credits, increased operational expenses and the halving.

Riot Platforms, Inc. reports Q3 2024 results: $84.8M in revenue, 28 EH/s hashrate. CEO Jason Les: “Our energy efficiency allowed an industry-leading all-in cost of power at 3.1 cents/kWh.” pic.twitter.com/bbEno5GOkz
— Riot Platforms, Inc. (@riotplatforms) October 30, 2024

Hashrate Expansion Drives Revenue Despite Rising Costs

Riot’s revenue growth was driven by hashrate expansion which grew 159% in the last year to 28 EH/s by the end of September. Riot is committed to scaling up its mining capacity even as costs rise and infrastructure delays.

To keep costs down Riot reported an average cost to mine a Bitcoin of $35,376, half of the current market price. The company credits this to its low cost energy initiatives with an industry leading 3.1 cents per kilowatt hour.

Riot’s balance sheet is strong with $1.3 billion in cash and equity and 10,427 Bitcoin worth $750 million.

Adjusted Projections Due to Infrastructure Delays

Looking ahead Riot is revising its hashrate targets due to delays in its new Kentucky facilities. Originally targeting 36.3 EH/s by year end, the company is now expecting 34.9 EH/s. The 2025 target has been adjusted down to 46.7 EH/s from 56.6 EH/s due to extended lead times for a substation at its Corsicana facility in Texas. Riot still expects big capacity in the future with 65.7 EH/s by 2026 when all sites are fully operational.

Despite the good revenue report Riot’s stock (RIOT) fell 3.6% in after hours to $9.86. Year to date the stock is down 32% and still far from its February 2021 high of over $70.

As the industry prepares for post halving pressures, Bitcoin miners including Riot are adjusting to the reduced rewards which dropped from 6.25 BTC to 3.125 BTC per block in April 2024. According to a report by Markus Thielen, head of research at 10x Research, miners may liquidate up to $5 billion of BTC to fund operational expenses and that could impact the broader market.

Key Takeaways

• Revenue Growth: Riot’s Q3 revenue rose 65% year-over-year, driven by a 159% increase in hashrate.

• Operational Challenges: Expansion delays in Texas and Kentucky led to downward adjustments in 2024 and 2025 hashrate targets.

• Market Impact: Riot’s stock remains down 32% this year amid increased competition and halving-induced pressures.