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Bitcoin mining company Riot has achieved record revenues of $281 million in 2023.

Such results confirm not only the growing value of cryptocurrencies, but also the ability of mining companies to make efficient use of resources and infrastructure.

Date: 2024-02-23 Author: Marek Stiller
Bitcoin mining company Riot has achieved record revenues of $281 million in 2023.

In 2023, Riot Platforms, a Bitcoin (BTC) mining company, achieved record revenues of $281 million. In a press release on Thursday, the company’s CEO Jason Les expressed satisfaction with Riot’s performance last year and highlighted several important achievements.

The company said it produced 6626 Bitcoins during the year, up 19 percent from the 5554 it produced during the same period in 2022. Les published a post in which he said: “I am pleased to announce Riot’s results for 2023, which proved to be another milestone in Riot’s continued growth as a leading vertically integrated Bitcoin mining company.”

He added that Riot has made significant progress in strategic areas. This includes the completion of the expansion of the Rockdale plant, which now has a capacity of 700 megawatts.

The company has also worked with MicroBT to secure long-term supplies of state-of-the-art mining equipment at fixed prices. What’s more, Riot is working hard on its 1-gigawatt Corsicana mining facility, which is expected to begin operations at the end of the first quarter of 2024. When fully operational, Corsicana will become the largest Bitcoin mining facility in the world.

Breaking down its financial results for the 2023 fiscal year, Riot said it earned a total of $280.7 million. The company detailed that revenues from Bitcoin mining totaled $189.0 million, Data Center hosting $27.3 million, engineering $64.3 million and other $0.1 million.

Revenue from Bitcoin mining exceeded expenses, totaling $92.4 million, or 48.9% of revenue. This represented an increase of $9.9 million compared to the same period in 2022.

The increase in costs related to Bitcoin Mining revenues can be attributed to increased mining capacity at the Rockdale site, which resulted in increased direct costs and increased staff needed to support operations.

Data center hosting costs exceeded revenues by $69.8 million, mainly due to direct energy costs and additional salary and rent expenses.

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By the end of 2023, the company held 7362 Bitcoins, valued at about $311 million, and about $597 million in cash.

Riot ‘s long-term energy contracts allow them to return energy that has not been used, and receive energy credits at appropriate spot prices that are aligned with market conditions.

In the last year, Riot received energy credits worth $71.2 million, as opposed to $27.3 million in the same period in 2022. These credits were equivalent to approximately 2,497 Bitcoins, based on the average daily closing Bitcoin prices during the month.

Moreover, Riot reported general and administrative expenses of $100.3 million in 2023 and $67.5 million in 2022. In terms of net loss, Riot reported $49.5 million , or $0.28 per share, in 2023, as opposed to $509.6 million, or $3.65 per share, in 2022.

Non-cash stock-based compensation of $32.2 million and depreciation and amortization of $252.4 million were part of the net loss for 2023. Riot recently joined with the Texas Blockchain Council (TBC) to sue the US Energy Information Administration (EIA). The company accuses the agency of making unlawful requests to collect data from the Bitcoin mining sector.

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Marek Stiller
Marek Stiller
Founder of the "Cryptocurrency for Beginners" channel on YouTube. He collaborates with Łukasz to form the Arena Trading group, while at the same time being passionate about blockchain technology. His knowledge and experience in the cryptocurrency industry help beginner investors better understand this dynamic market.
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