According to its latest financial report, Riot Platforms, one of the world’s largest Bitcoin mining and data center hosting firms, generated a record high in terms of revenue in 2023.
A Breakdown Of Riot’s 2023 Financial Report
According to its annual report, Riot Platforms registered a record-breaking $280.7 million in total revenue in the past year. This figure represents an 8% increase from the $259.2 million earned in 2022.
Breaking down the data, Riot revealed that the Bitcoin mining revenue accounted for $189 million (about 67%) of the total revenue. Compared to the 2022’s $150 million, the mining revenue grew by over 20% in the past year.
According to the report, the increase in the Bitcoin mining revenue was driven by the firm’s higher Bitcoin production and growing price of BTC. In 2023, Riot Platforms mined 6,626 BTC, a 19% increase from the 5,554 coins produced within the same twelve-month period in 2022.
Meanwhile, the company generated significant value in other sectors of its operations, including $64.3 million in engineering, $27.3 million from data center hosting, and $0.1 million from other services.
Interestingly, Riot’s record revenue was not sufficient to offset the higher expenditures in 2023, including the firm’s mining capacity, labor force, and power expenses. As a result, the company recorded a net loss of $49.5 million in the previous year.
However, it is worth mentioning that Riot’s net losses reduced significantly in 2023, shrinking from a whopping $509.6 million in the preceding year.
Jason Les, CEO of Riot Platforms, reacted in a statement:
I am pleased to announce results for Riot for 2023, which proved to be another milestone year in Riot’s ongoing development as a leading vertically integrated Bitcoin miner. We achieved record results in 2023, generating all-time highs of $281 million in total revenues, 6,626 Bitcoin produced, and $71 million in power credits earned from our unique power strategy.
How Riot Is Preparing For Bitcoin Halving
With the Bitcoin halving event less than two months away, conversations have been swirling around the BTC mining industry and how miners are preparing for the significant event. The halving event is expected to slash miners’ rewards and, consequently, their revenues in half.
In the latest report, Riot revealed a 28% increase in its hash rate capacity in the previous year, reaching a record 12.4 EH/s as of December 31, 2023. Interestingly, the Bitcoin mining firm aims to even improve its capacity throughout 2024.
Jason Les said about the company’s plans:
As a leading vertically integrated Bitcoin miner, coupling development of our Corsicana Facility with a secured supply of leading-edge miners from MicroBT, and our strong balance sheet gives Riot the most secure, visible path in our industry to achieving our growth plans. Our targets are to reach 28 EH/s in total hash rate capacity by the end of 2024, 38 EH/s by the end of 2025, and ultimately 100 EH/s and beyond.
For clarity, the hash rate refers to the measure of the total computational power being used to mine and process transactions on the Bitcoin network.