Bitcoin mining giant Riot Platforms reported a strong 65% year-over-year increase in revenue for Q3 2023, totaling $84.8 million. However, the company has had to revise its ambitious hashrate expansion plans due to delays in facility expansion, particularly at a recently acquired site in Kentucky.
Hashrate Expansion Slowed by Facility Delays
Riot’s increased deployed hash rate enabled the company to mine 1,104 Bitcoin this quarter—matching production levels from Q3 2022, even after the Bitcoin halving. This growth in mining output was driven by a 159% annual rise in deployed hashrate, reaching 28 EH/s by the end of September.
Despite these gains, CEO Jason Les announced a downward revision of the company’s future hashrate projections. Initially targeting 36.3 EH/s by the end of 2024, Riot now expects to reach only 34.9 EH/s due to delays in its Kentucky facility expansion. Projections for 2025 were also scaled back to 46.7 EH/s from the previous estimate of 56.6 EH/s, as Riot faces extended timelines for power infrastructure development, particularly for a new substation at its Corsicana, Texas facility. The company expects to achieve 65.7 EH/s in hashrate by the close of 2026, once both Kentucky and Texas facilities are fully operational.
Q3 Financials Highlight Rising Costs and Losses
While Riot’s revenue grew, the company posted a net loss of $154 million, or $0.54 per share—up 92% from Q3 2022. This increase in losses stemmed primarily from reduced power credits, higher operating costs, and the effects of the Bitcoin halving. However, the company still managed an average cost of $35,376 per mined Bitcoin, approximately half the current spot price of around $72,000, thanks to a highly efficient power cost of just 3.1 cents per kilowatt-hour.
Riot’s balance sheet remains strong, with $1.3 billion in cash and equity securities and a Bitcoin reserve of 10,427 coins, valued at approximately $750 million.
Riot’s Stock Performance Reflects Challenges
Riot’s stock (RIOT) declined by 3.6% on October 30, closing at $9.86 in after-hours trading. Year-to-date, RIOT shares have dropped 32% and are down 85% from their February 2021 all-time high of just over $70.
Riot remains optimistic about its future expansion and aims to achieve a 100 EH/s self-mining capacity as it continues to bolster operations across Texas and Kentucky.
