According to its latest financial report, Riot Platforms, one of the world’s largest Bitcoin mining and data center hosting companies, generated a record in terms of revenue in 2023.
According to its annual report, Riot Platforms posted a record $280.7 million in total revenue last year. This figure represents an increase of 8% compared to the $259.2 million earned in 2022.
The crypto company noted that the total increase in revenue was driven “by greater Bitcoin production and the increase in the price of BTC.”
Riot Platforms, which currently runs the largest Bitcoin crypto mining facility in North America located in Rockdale, Texas, increased its annual Bitcoin production by 19.3%.
Breaking down the data, Riot revealed that Bitcoin mining revenue accounted for $189 million (around 67%) of total revenue. Compared to $150 million in 2022, mining revenue grew more than 20% last year.
A Breakdown of Riot’s Financial Report for 2023
According to the report, the increase in Bitcoin mining revenue was driven by the company’s increased Bitcoin production and the rising price of BTC. In 2023, Riot Platforms mined 6,626 BTC, a 19% increase from the 5,554 coins produced in the same twelve-month period in 2022.
Meanwhile, the company generated significant value in other sectors of its operations, including $64.3 million in engineering, $27.3 million in data center hosting, and $0.1 million in other services.
Interestingly, Riot’s record revenue was not enough to offset increased expenses in 2023, including the company’s mining capacity, workforce, and energy expenses. As a result, the company posted a net loss of $49.5 million the previous year.
However, Riot’s net losses narrowed significantly in 2023, down from a whopping $509.6 million a year earlier.
Jason Les, CEO of Riot Platforms, reacted in a statement, stating the following:
“I am pleased to announce Riot’s results for 2023, which turned out to be another milestone year in Riot’s continued development as a leading vertically integrated Bitcoin miner. We achieved record results in 2023, generating all-time highs of $281 million in total revenue, 6,626 Bitcoin produced and $71 million in energy credits earned through our unique energy strategy.”
Riot Platforms was compensated with $71.2 million in energy credits through support of the state’s ERCOT grid during several weather-related demand surges last year. According to various reports, Riot Platforms received a monthly record of $31.7 million in energy and demand response credits in August.
How Riot Is Preparing for the Bitcoin Halving
With the Bitcoin halving event less than two months away, conversations have revolved around the BTC mining industry and how miners are preparing for the important event. The halving event is expected to halve miners’ rewards and consequently their income.
In the latest report, Riot revealed a 28% increase in its hash rate capacity in the previous year, reaching a record of 12.4 EH/s as of December 31, 2023. Interestingly, the Bitcoin mining company intends to even improve its capacity throughout 2024.
Jason Les had this to say about the company’s plans:
“As a leading vertically integrated Bitcoin miner, combining the development of our Corsicana facility with a secure supply of cutting-edge miners from MicroBT and our strong balance sheet provides Riot with the safest and most visible path in our industry to achieve our growth plans. “Our goals are to reach 28 EH/s in total hash rate capacity by the end of 2024, 38 EH/s by the end of 2025, and ultimately 100 EH/s and beyond.”
The hash rate refers to the measure of the total computing power used to mine and process transactions on the Bitcoin network.
By Leonardo Perez
