Riot Blockchain lost $366 million in the quarter
- August 17, 2022
- 0
Mining company Riot Blockchain posted a net loss of $366.3 million on revenue of $72.9 million for the second quarter. Riot Reports Q2 2022 Financial Results, Current Operational
Mining company Riot Blockchain posted a net loss of $366.3 million on revenue of $72.9 million for the second quarter. Riot Reports Q2 2022 Financial Results, Current Operational
Mining company Riot Blockchain posted a net loss of $366.3 million on revenue of $72.9 million for the second quarter.
Riot Reports Q2 2022 Financial Results, Current Operational and Financial Summaries.
“We’re extremely encouraged by Riot’s financial resilience and operational success this quarter.” @JasonLes_Riot CEO.
Read More: https://t.co/R314T3BOZH
— Riot Blockchain Inc. (@RiotBlockchain) 15 August 2022
The negative financial indicator in the company was mainly explained by depreciation. goodwill ($349.1 million) and bitcoin reserves ($99.8 million).
During the reporting period, Riot received a $5.7 million return-to-grid loan from Texas’ main operator, ERCOT.
“We believe the ability to sell electricity to the grid at market spot prices, thereby reducing our own operating costs, is an integral part of the overall strategy. Participation in various on-chain demand response programs can affect our bitcoin production, but we see it as an important part of ERCOT’s partnership approach.”
For the second quarter, Riot mined 1395 BTC, 0.7% less than the previous period.
The company’s revenue fell 8.7%. Of a total of $72.9 million, mining operations brought in $46.2 million and hosting services brought in $9.8 million.
The company said the financial results of operations were negatively impacted by the drop in the price of bitcoin and the increase in variable costs for mining.
As of June 30, Riot had a fleet of 44,720 ASIC miners with a total hash rate of 4.4 EH/s.
In the second quarter, the firm completed construction of the first building with immersion cooling equipment for 23,000 miners at its Whinstone facility in Texas.
Riot has moved all of its installations from Coinmint’s Massena, New York data center to Whinstone. This is expected to increase the profitability of mining by reducing the cost of electricity and hosting.
All equipment arriving in the data center, including the 9316 new Antminer S19j Pro received in July, is connected by company immersion cooling.
Riot plans to deploy approximately 115,450 miners with a total hashrate of approximately 12.5 EH/s by early 2023. It is assumed that almost the entire fleet will consist of units of the S19 series.
Recall that in June, the majority of public miners began liquidating their bitcoin reserves by realizing 14,600 BTC.
In July, the trend continued, but of the digital gold sellers, only Riot pulled out more cryptocurrencies than liquidity in a month.
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