Bitcoin mining company Riot Platforms reported a 19% increase in Bitcoin production in 2023, with a total of 6,626 BTC mined.
The cost of Bitcoin mining in 2023 averaged $7,539 per Bitcoin after taking into account power credits allocated to self-mining. This is a 33% decrease from the 2022 average of $11,225.
Riot Platforms’ sales soar
Riot Platforms CEO Jason Les revealed the company’s outstanding performance in 2023, highlighting it as another important milestone in the company’s journey as a vertically integrated Bitcoin (BTC) miner.
Les boasted $281 million in total revenue, 6,626 bitcoins produced, and $71 million in power credit revenue through his innovative power strategy.
According to the report, the average cost to mine one Bitcoin in 2023 is about $3,686 less than the previous year. Specifically, Riot’s mining cost per Bitcoin averaged $7,539 after accounting for power credits allocated to its own mining, down 33% from $11,225 in 2022.
Moreover, the average value of Bitcoin in 2023 exceeded the average value in 2022, increasing revenue this year to $280.7 million compared to $259.2 million the previous year. This rise is primarily due to the higher average price of Bitcoin throughout 2023, unlike the bear market in 2022.
Les further elaborated on Riot’s strategic developments for 2023, including:
- 700 MW Rockdale facility expansion completed
- The power strategy was successfully scaled to achieve a low mining cost of $7,539 per Bitcoin.
- Strategic partnership with MicroBT securing long-term fixed price supply of latest generation mining machines
- Development of a 1-gigawatt Corsicana facility is underway. The facility is expected to be active by the end of the first quarter of 2024 and, once completed, will be the world’s largest dedicated Bitcoin mining facility.
The report highlights the Riot platform’s strengthened balance sheet, ending 2023 with approximately $597 million in cash, 7,362 bitcoins worth approximately $311 million at year-end prices, and minimal long-term debt.
Les emphasized that Riot maintains a strong balance sheet, allowing the company to take the safest path within the industry to achieve its growth goals. He confirmed Riot’s goal of total hashrate capacity of 28EH/s by the end of 2024, 38EH/s by the end of 2025, and ultimately exceeding 100EH/s.
Strategic expansion amid regulatory uncertainty
In June 2023, Riot Platforms expanded its operations by acquiring 33,000 new Bitcoin miners ahead of the halving event in 2024. This strategic move was aimed at increasing mining capacity and potential profits ahead of the Bitcoin halving event.
Riot Platforms has invested approximately $138.5 million in these miners, demonstrating its confidence in the future of Bitcoin mining and the expected rise in Bitcoin value.
Deployment of these next-generation miners is scheduled for Q1 2024 and will add 7.6 EH/s per second to Riot Platforms’ own mining capacity, reaching a total of 20.1 EH/s.
Separately, the Texas Blockchain Council (TBC) and Riot Platforms jointly filed a lawsuit in the U.S. District Court against the U.S. Department of Energy (DOE), the Energy Information Administration (EIA), and the U.S. Office of Management and Budget (OMB). February 23rd in West Texas.
The lawsuit challenges what the plaintiffs perceive to be excessive regulatory scrutiny of the Biden administration’s cryptocurrency sector, particularly its energy consumption.
The core of the lawsuit is EIA’s urgent collection of information from various TBC members, including the Riot platform, which the plaintiff claims violates legal standards such as the Paperwork Reduction Act. The lawsuit calls the government’s approach “sloppy” and “invasive,” and claims it lacked proper due diligence and procedural compliance.
TBC and Riot Platform are seeking to stop DOE and EIA’s data collection from identified commercial cryptocurrency miners and invalidate OMB’s approval of these efforts.