2024

United

Bitcoin

Bitcoin miner Riot Platforms missed estimates after posting its first quarterly loss since 2022, as the miners continues to feel the impact of April’s halving event.
Riot <a href="https://www.riotplatforms.com/riot-platforms-reports-second-quarter-2024-financial-results-current-operational-and-financial-highlights/" target="_blank" rel="noopener nofollow">posted</a> a Q2 net loss of $84.4 million, or $0.32 per share, double the $0.16 per share loss &nbsp;<a href="https://www.zacks.com/stock/news/2313529/riot-platforms-inc-riot-reports-q2-loss-misses-revenue-estimates?art_rec=quote-stock_overview-earnings_news-ID01-txt-2313529" target="_blank" rel="noopener nofollow">forecasted</a> by investment research firm Zacks. It is the first time the firm has reported a quarterly loss since Q4 2022. 
The widened loss was due in a large part to an increase in selling, general and administrative expenses totaling $61.2 million — a $41.4 million increase from Q2 2023.
The Bitcoin miner’s revenue also fell 8.75% year-on-year to $70 million, falling just short of Zacks’ estimates. The fall was due to a dip in engineering revenues, partially offset by an increase in Bitcoin mining revenue.
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 <img src="https://s3.cointelegraph.com/uploads/2024-07/114ac6fd-723d-4e48-81e7-d4e78c945303.png" alt="Bitcoin miner Riot Platforms miss estimates with wider Q2 loss">
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 Key takeaways from Riot’s Q2 performance. Source: Riot Platforms
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Riot’s Bitcoin mining production fell 52% to 844 BTC in Q2 — which it largely attributed to <a href="https://cointelegraph.com/explained/bitcoin-halving-explained">April’s halving event.</a>
The firm’s cost to mine a Bitcoin increased a staggering 340% from $5,734 to $25,327 as a result of the halving and a 68% rise in the <a href="https://cointelegraph.com/explained/what-is-bitcoin-hash-rate-and-why-does-it-matter">Bitcoin network hash rate.</a>
Despite this, Riot’s Bitcoin mining revenue increased 12% — which was contributed by a near-100% increase in Bitcoin’s (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>) price between June 30, 2023 and June 30, 2024.
Riot also nearly <a href="https://cointelegraph.com/news/bitcoin-miner-riot-platforms-hash-rate-up-50-percent-june">doubled its installed hash rate</a> to 22 exahashes per second during Q2 and expects its total self-mining hash rate capacity to reach 36 EH/s before the end of 2024.
Related: <a href="https://cointelegraph.com/news/michael-saylor-ups-bitcoin-price-forecast-13-million-mega-bullish-keynote-bitcoin-2024">Michael Saylor ups BTC price forecast to $13M in mega-bullish keynote — Bitcoin 2024</a>
Meanwhile, Riot intensified its acquisition strategy against rival Bitfarms by purchasing roughly 10 million additional shares this month, <a href="https://www.sec.gov/Archives/edgar/data/1167419/000110465924084145/tm2415618d22_sc13da.htm" target="_blank" rel="noopener nofollow">according</a> to a July 31 filing with the United States securities regulator. 
<a href="https://cointelegraph.com/news/riot-950m-bitfarms-takeover-rejected">Riot attempted to acquire Bitfarms</a> with a $950 million buyout offer in mid-June, though the company later admitted defeat.
“[It’s] clear that engaging with the incumbent Bitfarms Board on a potential combination is just not possible,” Riot<a href="https://www.riotplatforms.com/riot-requisitions-special-meeting-of-bitfarms-shareholders-and-nominates-three-highly-qualified-independent-directors-to-bring-urgently-needed-change-to-bitfarms-board/" target="_blank" rel="noopener nofollow"> said</a> in a June 24 statement.
Riot’s (RIOT) share price is down 1.18% in after-hours trading since its Q2 report was released, Google Finance data <a href="https://www.google.com/finance/quote/RIOT:NASDAQ" target="_blank" rel="noopener nofollow">shows.</a> 
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 <img src="https://s3.cointelegraph.com/uploads/2024-07/b222f982-081d-42b5-9deb-6753ecd84591.png" alt="Bitcoin miner Riot Platforms miss estimates with wider Q2 loss">
 <figcaption style="text-align: center;">
 Riot’s change in share price so far in 2024. Source: Google Finance
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Riot is now down nearly 33.8% so far in 2024 — while one of its rivals, CleanSpark (CLSK), has increased 47% and flipped Riot as the second largest Bitcoin miner by market cap.
Magazine: <a href="https://cointelegraph.com/magazine/wolf-of-all-streets-world-bitcoin-hits-1m-1-million-hall-of-flame/">Wolf Of All Streets worries about a world where Bitcoin hits $1M: Hall of Flame</a>

Bitcoin miner Riot Platforms miss estimates with wider Q2 loss

Cointelegraph

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