Riot Platforms saw a revenue increase of $280.7 million in 2023, driven by increased Bitcoin production, higher average prices, a strong balance sheet and improved hashrate capacity.
Riot Platforms, Inc. (NASDAQ: RIOT), a vertically integrated bitcoin mining company, announced its full-year 2023 financial results, noting significant operational growth and financial results. According to the February 22, 2024 release, Riot generated total revenue of $280.7 million, an increase from the previous year’s $259.2 million in 2022. This increase was mainly due to an increase in Bitcoin production and a higher average price of Bitcoin year after year.
Operational growth
The company reported a 19% increase in bitcoin production, with a total of 6,626 bitcoins mined compared to 5,554 the previous year. In particular, Riot’s strategic energy strategy contributed to earning $71.2 million in energy credits from maintaining the ERCOT grid in Texas during several weather-related supply/demand issues in 2023.
Strategic developments
Riot also completed the expansion of its 700 megawatt Rockdale facility and continued development of the Corsicana facility, which is scheduled to start powering in late Q1 2024. Once fully developed, it will be recognized as the largest dedicated facility for bitcoin mining in the world . In addition, Riot has outlined a partnership with MicroBT to provide the supply of latest-generation miners at a fixed price, increasing the efficiency of Riot’s mining operations.
Financial health
The company ended the year with a solid balance sheet, including approximately $597 million in cash and 7,362 bitcoins, valued at about $311 million based on year-end prices, with nominal long-term debt. Riot’s average cost to mine Bitcoin in 2023, net of power credits, was $7,539 per Bitcoin, a 33% decrease from the previous year.
Hash rate capacity
Riot increased its hashrate capacity by 28% to 12.4 exahash per second (EH/s) as of December 31, 2023. The company has set goals to reach 28 EH/s by the end of 2024 and 38 EH/s by end of 2025
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