- Riot Platforms reported record revenue of $280.7 million and produced 6,626 BTC in 2023.
- Riot Platforms increased its hash rate capacity to 12.4 EH/s and plans to expand further amid rising Bitcoin mining difficulty.
Riot Platforms, a vertically integrated Bitcoin mining and data center hosting firm, reported record revenue of $280.7 million for the year ended December 31, 2023, according to its annual report.
Riot Platforms saw an 8% increase in its total revenue from $259.2 million in 2022 to $280.7 million in 2023. The majority of the revenue came from Bitcoin mining, which accounted for $189 million (67%) of the total revenue, up 20% from 2022. The increase in Bitcoin mining revenue was driven by higher Bitcoin production and the rising price of Bitcoin.
Riot Platforms, which operates North America’s largest Bitcoin mining facility in Rockdale, Texas, grew its Bitcoin production by 19% year-over-year from 5,554 BTC in 2022 to 6,626 BTC in 2023. The company achieved this growth despite reducing its power consumption by over 95% during peak periods of energy demand, as part of its unique power strategy that supports the ERCOT grid in Texas.
This 19% increase in Bitcoin production is timed with a large decrease in the average cost of mining each Bitcoin, pointing to a positive financial future for the company.
Riot Platforms also earned income from other sources, including engineering ($64.3 million), data center hosting ($27.3 million), and additional services ($0.1 million), generating $91.7 million. However, the revenue was insufficient to pay Riot’s increased expenses in 2023, such as an increase in mining capacity, staff, and electricity costs.
As a consequence, the corporation recorded a net loss of $49.5 million, a considerable decrease from its net loss of $509.6 million in the year 2022.
Riot’s Expands Hash Rate
Riot Platforms increased its hash rate capacity by 28% in 2023, reaching a record 12.4 EH/s as of December 31, 2023. The company also plans to bring additional capacity online at its new Corsicana facility in Texas throughout 2024.
The company’s hash rate target is to reach 28 EH/s by the end of 2024, 38 EH/s by the end of 2025, and ultimately 100 EH/s and beyond, according to Riot CEO Jason Les.
The company’s hash rate expansion comes amid a surge in Bitcoin mining difficulty, which measures how hard it is to find a new block on the Bitcoin network. Bitcoin mining difficulty reached a record high of 81.73 trillion on February 16, 2024.
The difficulty is expected to reach 100 trillion before the next Bitcoin halving, which is estimated to occur in April 2024. The halving will reduce the block reward from 6.25 BTC to 3.125 BTC, making Bitcoin mining more competitive and less profitable.
The halving will reduce the block reward from 6.25 BTC to 3.125 BTC, making Bitcoin mining more competitive and less profitable.
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