Bitcoin Miner Riot Platforms Reports Q2 Net Loss of $84.4 Million, Misses Zacks' Estimate

Riot's Q2 revenue fell 8.75% from $51.6 million to $70 million, missing Zacks' estimate despite year-on-year growth.

Major Bitcoin miner Riot Platforms announced a Q2 net loss of $84.4 million, equating to $0.32 per share, marking the first quarterly loss since Q4 2022. This loss was notably higher than the Zacks estimate of a $0.16 per share loss.

The company attributed its financial troubles primarily to higher operating costs and the Bitcoin halving in April. Riot’s Q2 revenue saw an 8.75% decline, falling from $70 million in Q1 to $51.6 million, missing the Zacks estimate despite year-over-year growth. The company's Bitcoin mining output also decreased by 52%, dropping from 1,764 BTC to 844 BTC, largely due to the halving event.

The cost to mine a Bitcoin surged by 340%, moving from $5,734 to $25,327 due to the halving and a 68% increase in the Bitcoin network hash rate. However, Riot’s Bitcoin mining revenue increased by 12% thanks to a nearly twofold increase in the price of Bitcoin over the past year.

Riot also expanded its mining capacity, with the total installed hash rate increasing to 22 EH/s in Q2, and the company aims to achieve 36 EH/s by the end of 2024. Additionally, Riot recently upped its ante in its acquisition campaign against competitor Bitfarms, purchasing approximately 10 million more shares in July.

Following the Q2 report, Riot’s share price experienced a 1.74% decrease in after-hours trading, reflecting a nearly 33.87% decline in its stock value so far in 2024. In contrast, rival CleanSpark has seen a 47% increase in its stock price, surpassing Riot to become the second-largest Bitcoin miner by market cap.

Riot Platforms’ unexpected Q2 loss highlights the severe impact of rising operating costs and the April Bitcoin halving on its financial performance.

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