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Riot platforms report surge in Bitcoin production amid rising revenue

TL;DR

  • Riot mined 19% more Bitcoin in 2023 and cut mining costs by 33% compared to 2022.
  • Revenue rose to $280.7 million in 2023 from $259.2 million in the previous year, thanks to higher Bitcoin prices.
  • Riot and Texas Blockchain Council sued U.S. regulators over intrusive data requests from crypto miners.

Riot Platforms, a prominent player in the Bitcoin mining sector, has revealed a substantial uptick in its production for 2023. According to the company’s recent report published on Feb. 22, 2024, Riot Platforms recorded a 19% increase in the number of Bitcoins mined compared to the previous year, with 6,626 Bitcoins successfully mined in 2023. This surge in production comes alongside a significant reduction in the average cost of mining per Bitcoin, contributing to a favorable financial outlook for the firm.

The report highlights a notable decline in the average cost incurred by Riot Platforms for mining each Bitcoin throughout 2023. With a decrease of approximately $3,686 per Bitcoin compared to 2022, the firm’s cost to mine a single Bitcoin averaged $7,539 in 2023, marking a significant 33% reduction year-over-year. This decrease in operational expenses has contributed significantly to Riot Platforms’ enhanced financial performance and profitability.

Revenue surpasses previous year’s figures

The surge in Bitcoin production, coupled with the higher average value of Bitcoin in 2023 compared to the preceding year, has propelled Riot Platforms’ annual revenue to new heights. The firm reported a total revenue of $280.7 million for 2023, representing a notable increase from the previous year’s $259.2 million. The rise in revenue can be attributed primarily to the higher average price of Bitcoin throughout 2023, which averaged $28,859 per Bitcoin, compared to $28,245 per Bitcoin in 2022.

In December 2023, Riot Platforms made headlines with its acquisition of 66,560 mining rigs from MicroBT, marking one of the largest expansions of hash rate in the company’s history. This strategic move positions Riot Platforms for continued growth and increased mining capabilities, especially in anticipation of the Bitcoin halving scheduled for April.

Despite recent fluctuations in the market, Riot Platforms has demonstrated resilience, with its share price experiencing a notable surge of 47.47% over the past month. However, the company witnessed a slight decline of approximately 10.65% in its share price over the five-day trading period last week. At the time of publication, Riot’s share price stands at $14.85.

Industry insights and competition

In addition to Riot Platforms’ performance, other key players in the Bitcoin mining sector have also reported notable production results for 2023. Core Scientific recorded the production of 19,274 Bitcoins, while CleanSpark experienced a remarkable 60% surge compared to the previous year, mining over 7,300 Bitcoins during the same period. Marathon Digital, another significant player in the industry, mined 12,852 Bitcoins in 2023, with a notable increase of 56% in December alone compared to the previous month.

In recent developments, Riot Platforms, in collaboration with the Texas Blockchain Council, has initiated legal action against the United States Department of Energy, the Energy Information Administration, and the Office of Management and Budget. The lawsuit challenges the regulatory bodies’ demands for invasive data from crypto miners, highlighting ongoing concerns within the industry regarding regulatory compliance and privacy rights.

Riot Platforms’ robust performance in Bitcoin production and revenue generation for 2023 underscores the company’s position as a leading player in the mining sector. With strategic expansion efforts and ongoing market developments, Riot Platforms remains poised for continued growth and innovation in the evolving cryptocurrency landscape.

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Benson Mawira

Benson is a blockchain reporter who has delved into industry news, on-chain analysis, non-fungible tokens (NFTs), Artificial Intelligence (AI), etc.His area of expertise is the cryptocurrency markets, fundamental and technical analysis.With his insightful coverage of everything in Financial Technologies, Benson has garnered a global readership.

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