Riot Platforms Records Widened Net Loss of $84.4M in Q2 2024, Bitcoin Halving Continues to Impact Performance

The American Bitcoin mining firm's widened losses are a result of the continued impact of April's Bitcoin halving.

American Bitcoin (BTC) mining firm Riot Platforms (NASDAQ: RIOT) has reported a wider net loss for the second quarter of 2024.

The company announced a net loss of $84.4 million for Q2, compared to $27.4 million in the same quarter last year. This marks a significant increase in虧損， largely driven by the continued impact of April’s Bitcoin halving.

Riot Platforms Q2 PerformanceRiot Platforms reported total revenue of $70 million in Q2 2024, down from $76.7 million in Q2 2023. This decrease was primarily driven by a $9.7 million drop in Engineering revenues, partially offset by a $6 million rise in Bitcoin mining revenue.

During the same period, Riot's total Bitcoin production decreased by 52% to 844 BTC, down from 1,775 BTC in Q2 2023. This decline was attributed to the April 2024 Bitcoin block subsidy 'halving' and an increase in the global network difficulty.

The average direct cost to mine Bitcoin also increased significantly, rising to $25,327 per BTC in Q2 2024, compared to $5,734 in Q2 2023. This increase was primarily driven by the Bitcoin halving and a 68% rise in the global network hash rate.

Despite the challenges, Riot Platforms reported an increase in mining revenue, which reached $55.8 million in Q2 2024, up from $49.7 million in the prior year. This increase was mainly due to higher average BTC prices and an improved operational hash rate.

The company's total working capital remained strong at $646.5 million, including $481.2 million in cash. Additionally, Riot Platforms held 9,334 unencumbered Bitcoin, which were valued at approximately $585 million and were fully mined through its operations.

Commenting on the Q2 performance, Riot Platforms CEO Jason Les said,

“The second quarter saw the Bitcoin network 'halving' in April of this year, a preprogrammed event whereby the Bitcoin block subsidy received by miners from the network is cut in half every four years. Despite this reduction in available production for all Bitcoin miners, Riot posted $70.0 million in revenue for the quarter and maintained strong gross margins in our core Bitcoin mining business.”

Riot Platforms acquired Kentucky-based Block Mining in a $92.5 million deal last month, which included $18.5 million in cash from Riot's reserves and $74 million in Riot common stock.

Following the acquisition, the mining firm reported an immediate increase in hash rate, expanded its geographical footprint, and entered additional energy markets outside the Electric Reliability Council of Texas (ERCOT) region.

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