Bitcoin miner Riot has unveiled its financial results for Q2 2023, reporting a total revenue of $76.7 million.
The results highlight the company’s resilience in a fluctuating market, with a 27% increase in Bitcoin production contributing significantly to its success.
Riot has reduced the average cost of mining Bitcoin to $8,389, down from $11,316 in the same quarter last year. This reduction comes despite a lower average Bitcoin price of $28,024 in Q2 2023, compared to $33,083 in Q2 2022.
Riot’s partnership with Midas Immersion aims to make Riot’s Corsicana Facility the largest and most advanced immersion cooling deployment for Bitcoin mining worldwide.
Additionally, Riot announced a long-term purchase agreement with MicroBT, securing 33,280 next-generation miners with an option to purchase another 66,560. These acquisitions are expected to add 7.6 EH/s by mid-2024 and are specifically designed for immersion cooling.
The company aims to ramp up its hash rate to 35.4 EH/s by 2025 by adding the entire MicroBT miner order.
Energy sales offset BTC production
In June 2023, Riot produced 460 Bitcoin, a drop from the 757 Bitcoin mined in May 2023.
Despite this reduction, Riot’s power strategy generated approximately $10 million through power sales and demand response revenue.
Riot’s strategic approach to power utilization during Texas’s June heatwave generated $8.4 million in power sales and $1.6 million in demand response revenue. This gives Riot a competitive edge and reflects its commitment to supporting the broader energy grid.
Unlike most U.S. miners who sold Bitcoin to secure profits during June’s price surge, Riot demonstrated caution by selling only 400 Bitcoins, reflecting confidence in its unique power strategy.
However, Riot has faced challenges, including a severe winter storm in Texas that impacted the company’s hash rate growth. Repairs are expected to be completed by August.
A decrease in revenue from data center hosting to $7.7 million from $9.8 million in the same period in 2022 was reported, and the quarter ended with a net loss of $27.7 million. This loss, though substantial, is much lower than the net loss of $353.6 million in Q2 2022.