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Mining and data center hosting company Riot Platforms generated record total revenue in 2023, according to its annual report for the year ending December 31. I submitted it today.
Riot’s total revenue increased 8% from $259.2 million in 2022 to $280.7 million in 2023. Bitcoin mining revenue accounted for $189 million (67%) of total revenue, driven by increased Bitcoin production and the rising Bitcoin price. This is a 20% increase from 2022. , the company said.
Riot, which operates North America’s largest Bitcoin mining facility in Rockdale, Texas, plans to reduce its Bitcoin production from 5,554 BTC in 2022 to 6,626 BTC in 2023, despite reducing power usage by more than 95% during peak periods. increased by 19% compared to the previous year. of energy demand
Riot also generated $64.3 million in engineering revenue, $27.3 million in data center hosting revenue, and $100,000 in other services. Revenues were not enough to offset higher costs in 2023, including increases in Riot’s mining capacity, personnel and power costs, resulting in a net loss of $49.5 million. However, the net loss was significantly lower compared to 2022’s $509.6 million.
Riot was compensated with $71.2 million in power credits last year through assistance from the state’s ERCOT grid during several weather-related demand surges. This corresponds to approximately 2,497 BTC at the average price. This included receiving a monthly record $31.7 million in power and demand response credits in August, The Block previously reported.
“We plan to generate $281 million in total revenue in 2023, produce 6,626 Bitcoins, and earn $71 million in power credits through our unique power strategy,” Riot CEO Jason Les said in a statement. “We achieved record results, an all-time high.”
“At the same time, Riot is further strengthening its already industry-leading balance sheet, with approximately $597 million in cash at the end of 2023, 7,362 Bitcoins (equivalent to approximately $311 million at year-end Bitcoin prices), and long-term notional assets. Debt secured. ” added Les.
Riot’s hashrate capacity increased by 28% as Bitcoin mining expansion plans increase.
Riot is increasing hash rate capacity by 28% in 2023, reaching a record 12.4 EH/s as of December 31. We also plan to bring additional capacity online at our new Corsicana facility in Texas throughout 2024. The total computational power used to mine and process transactions on the Bitcoin network.
“Our goal is to reach a total hash rate capacity of 28EH/s by the end of 2024, 38EH/s by the end of 2025, and ultimately over 100EH/s,” Les said.
Increased hash rate. Image: Riot Platform.
Bitcoin mining difficulty, which measures how difficult it is to find new blocks, hit an all-time high of 81.73 trillion on February 16. This figure could reach 100 trillion before the next Bitcoin halving, which is expected to take place on April 20.
Bitcoin mining difficulty. Image: BTC.com.
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