Bitcoin mining firm Riot Platforms reports a total revenue of $70.0 million from the $76.7 million recorded in the same period last year. The drop is due to the Bitcoin halving event in April.
This decrease in revenue is also attributed to a $9.7 million drop in engineering revenues. This was somewhat offset by a $6 million increase in Bitcoin Mining revenue. This highlights the firm’s resilience in its core mining operations despite broader financial challenges.
“The second quarter saw the Bitcoin network ‘halving’ in April of this year, a preprogrammed event whereby the Bitcoin block subsidy received by miners from the network is cut in half every four years,” said Jason Les, CEO of Riot Platforms.
“Despite this reduction in available production for all Bitcoin miners, Riot posted $70.0 million in revenue,” adds Les.
Riot Mines Less Bitcoin
During the second quarter, Riot Platforms produced 844 Bitcoin, a 52% decline from the 1,775 Bitcoin mined during the same period last year.
The reduction is mainly due to the Bitcoin block subsidy ‘halving’ event that occurred in April. Bitcoin halving, an event that occurs approximately every four years, reduces the reward for mining new blocks by half. The most recent halving was on April 19. The halving saw miners’ rewards drop from 6.25 BTC to 3.125 BTC.
This reduced the reward for mining new blocks, coupled with increased network difficulty. These factors have constrained the firm’s Bitcoin output despite operational efforts.
Average Cost to Mine Bitcoin Rises
The average cost to mine a single Bitcoin for Riot Platforms increased to $25,327. This is a dramatic rise from $5,734 per Bitcoin in the second quarter of 2023.
This surge in costs is largely due to the block subsidy halving and a 68% increase in the global network hash rate, which reflects the overall computational power used in mining activities worldwide.
Riot Platforms reports it generated $13.9 million in power credits during the second quarter, slightly up from $13.5 million in the same period last year.
Engineering Revenue Decline
Engineering revenue suffered a decline, coming in at $9.6 million compared to $19.3 million in the same period last year. This shows huge challenges in this segment of the business.
Riot Platforms reported a strong working capital position of $646.5 million, including $481.2 million in cash on hand. The mining firm holds 9,334 which have been produced through the company’s self-mining operations.
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