Riot Blockchain Reports $280.7 Million Revenue Boost in 2023

Riot Platforms, Inc. (NASDAQ: RIOT), a leading Bitcoin mining company, has announced impressive full-year financial results for 2023. The company reported a total revenue of $280.7 million, a significant increase from the previous year. This growth is attributed to various factors such as increased Bitcoin production, higher average prices, a strong balance sheet, and enhanced hash rate capacity.

Operational Growth

One of the key highlights of Riot’s financial results is a 19% increase in Bitcoin production, with a total of 6,626 Bitcoin mined in 2023 compared to 5,554 in 2022. The company’s strategic power strategy also played a crucial role, with Riot earning $71.2 million in power credits from the ERCOT grid in Texas during supply/demand issues in 2023.

Strategic Developments

Riot has completed the expansion of its 700 megawatt Rockdale Facility and is continuing the development of the Corsicana Facility, expected to be operational by the end of Q1 2024. Once completed, the Corsicana Facility will be recognized as the world’s largest dedicated Bitcoin mining facility. Additionally, Riot has partnered with MicroBT to secure a fixed-price supply of the latest-generation miners, enhancing the efficiency of its mining operations.

Financial Health

At the end of 2023, Riot boasted a strong balance sheet with approximately $597 million in cash and 7,362 Bitcoin, valued at around $311 million based on year-end prices. The company also reported nominal long-term debt. In 2023, Riot’s average cost to mine Bitcoin, net of power credits, decreased by 33% to $7,539 per Bitcoin.

Hash Rate Capacity

Riot increased its hash rate capacity by 28% to 12.4 exahash per second (EH/s) as of December 31, 2023. The company has set ambitious targets to reach 28 EH/s by the end of 2024 and 38 EH/s by the end of 2025.