Riot Platforms posted a Q2 net loss of $84.4 million, or $0.32 per share, significantly higher than the $0.16 per share loss anticipated by Zacks.
This marks the company's first quarterly loss since Q4 2022, attributed to a substantial rise in selling, general, and administrative expenses, which soared to $61.2 million.
Riot's revenue decreased by 8.75% year-on-year to $70 million, just below estimates. The downturn in engineering revenues was partially mitigated by a rise in Bitcoin mining revenue. Notably, the company's Bitcoin mining production dropped 52% to 844 BTC in Q2, primarily due to the April halving event.
Consequently, the cost to mine a Bitcoin escalated by 340%, from $5,734 to $25,327, exacerbated by a 68% increase in the Bitcoin network hash rate.
Despite the operational challenges, Riot's Bitcoin mining revenue saw a 12% boost, driven by a nearly 100% increase in Bitcoin's price from June 30, 2023, to June 30, 2024. The firm nearly doubled its installed hash rate to 22 exahashes per second during Q2 and anticipates reaching 36 EH/s by the end of 2024.
Riot intensified its acquisition strategy by purchasing approximately 10 million additional shares of rival Bitfarms in July. Despite a $950 million buyout offer in June, Riot failed to acquire Bitfarms, citing an inability to engage with its board.
Riot's share price declined by 1.18% in after-hours trading following the Q2 report release. The company has experienced a 33.8% drop in 2024, contrasting with rival CleanSpark, which increased by 47%, surpassing Riot as the second-largest Bitcoin miner by market cap.
Riot’s change in share price so far in 2024. Source: Google Finance
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