Riot Platforms, a Bitcoin mining company, reported a 19% increase in Bitcoin production for 2023, mining a total of 6,626 BTC.
The cost of mining Bitcoin in 2023, after factoring in power credits allocated to self-mining, averaged $7,539 per Bitcoin. This marks a 33% decrease from the $11,225 average in 2022.
Riot Platforms’ revenue surge
Jason Les, CEO of Riot Platforms, unveiled the company’s exceptional performance in 2023, highlighting it as another significant milestone in the company’s journey as a vertically integrated Bitcoin (BTC) miner.
Les touted total revenues of $281 million, production of 6,626 Bitcoin, and earnings of $71 million in power credits through their innovative power strategy.
The report revealed that the average cost for mining one Bitcoin in 2023 decreased by approximately $3,686 compared to the previous year. Specifically, Riot’s mining cost per Bitcoin averaged $7,539, down 33% from $11,225 in 2022, after factoring in power credits allocated to self-mining.
Moreover, the average value of Bitcoin in 2023 exceeded that of 2022, leading to a revenue increase for the year to $280.7 million, compared to $259.2 million in the previous year. This boost was primarily attributed to the higher average price of Bitcoin throughout 2023, in contrast to the bear market of 2022.
Les further detailed Riot’s strategic advancements in 2023, including:
- The completion of the 700-megawatt Rockdale Facility expansion
- Successful scaling of their power strategy resulting in a low cost to mine of $7,539 per Bitcoin
- A strategic partnership with MicroBT securing a long-term, fixed-price supply of latest-generation miners
- Ongoing development of the 1-gigawatt Corsicana Facility, which is set to energize by the end of the first quarter of 2024 and poised to become the world’s largest dedicated Bitcoin mining facility upon completion.
The report highlighted Riot Platform’s strengthened balance sheet, closing out 2023 with approximately $597 million in cash, 7,362 Bitcoin valued at around $311 million based on year-end prices, and minimal long-term debt.
Les emphasized that Riot’s maintaining a robust balance sheet positions the company on the most secure path within the industry to achieve its growth objectives. He affirmed Riot’s targets to achieve a total hash rate capacity of 28 EH/s by the end of 2024, 38 EH/s by the end of 2025, and ultimately exceed 100 EH/s.
Strategic expansion amid regulatory uncertainty
In June 2023, Riot Platforms expanded its operations by acquiring 33,000 new Bitcoin miners ahead of the 2024 halving event. This strategic move aimed to boost mining capacity and potential profits ahead of the Bitcoin halving event.
With an investment of approximately $138.5 million in these miners, Riot Platforms demonstrated its confidence in the future of Bitcoin mining and the expected increase in Bitcoin’s value.
The deployment of these next-generation miners was slated for the first quarter of 2024, adding 7.6 exahashes per second (EH/s) to Riot Platforms’ self-mining capacity, reaching a total of 20.1 EH/s.
Separately, the Texas Blockchain Council (TBC) and Riot Platforms jointly filed a lawsuit against the U.S. Department of Energy (DOE), the Energy Information Administration (EIA), and the U.S. Office of Management and Budget (OMB) in the U.S. District Court for the Western District of Texas on Feb. 23.
The lawsuit challenges what the plaintiffs perceive as excessive regulatory scrutiny from the Biden Administration towards the cryptocurrency sector, particularly concerning energy consumption.
At the heart of the legal action lies the EIA’s emergency collection of information from various TBC members, including Riot Platforms, which the plaintiffs argue violates legal standards such as the Paperwork Reduction Act. Criticizing the government’s approach as “sloppy” and “invasive,” the lawsuit asserts that proper justification and procedural adherence were not followed.
The TBC and Riot Platforms seek to halt the DOE and EIA’s data collection from identified commercial cryptocurrency miners and invalidate the OMB’s approval of this endeavor.