Riot Platforms experienced a $280.7 million revenue increase in 2023, attributed to higher Bitcoin production, increased average prices, a strong balance sheet, and enhanced hash rate capacity.
Riot Platforms, Inc. (NASDAQ: RIOT), a vertically integrated Bitcoin mining company, disclosed its full-year financial results for 2023, showcasing substantial operational and financial growth. In a press release dated February 22, 2024, Riot reported a total revenue of $280.7 million, up from $259.2 million in 2022. This surge was mainly driven by a rise in Bitcoin production and higher average Bitcoin prices year over year.
Operational Expansion
The company recorded a 19% increase in Bitcoin production, mining a total of 6,626 Bitcoins compared to 5,554 in the previous year. Riot’s strategic power approach led to earning $71.2 million in power credits from the ERCOT grid support in Texas during various weather-related supply and demand challenges in 2023.
Strategic Advancements
Riot successfully expanded its 700-megawatt Rockdale Facility and progressed with the development of the Corsicana Facility, set to commence operations by the end of Q1 2024. Once fully operational, it will be recognized as the world’s largest dedicated Bitcoin mining facility. Furthermore, Riot announced a partnership with MicroBT to secure a fixed-price supply of cutting-edge miners, enhancing the efficiency of its mining operations.
Financial Stability
Ending the year with a solid balance sheet, Riot held approximately $597 million in cash and 7,362 Bitcoins, valued at around $311 million based on year-end prices, with minimal long-term debt. In 2023, Riot’s average cost to mine Bitcoin, net of power credits, decreased by 33% to $7,539 per Bitcoin.
Hash Rate Expansion
Riot boosted its hash rate capacity by 28% to 12.4 exahash per second (EH/s) as of December 31, 2023. The company has set ambitious targets to achieve 28 EH/s by the end of 2024 and 38 EH/s by the end of 2025.
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