Bitcoin mining company Riot Platforms has released its Q2 financial results, which showed a decline in cryptocurrencies mined due to the recent halving.
Colorado-based Bitcoin (BTC) mining company Riot Platforms has revealed its financial results for the second quarter, highlighting a significant drop in mined cryptocurrency attributed to the recent halving event that took place earlier in April.
The company reported total revenue of $70 million for the quarter ended July 31, down 8.7% compared to the same period in 2023. Riot Platforms attributed the revenue decline primarily to a $9.7 million decrease in engineering revenue, which was partially offset by a $6 million increase in bitcoin mining revenue.
During the quarter, the company mined 844 BTC, which was down more than 50% from Q2 2023, pointing to the halving event and increased network difficulty as the primary factors behind the decline. Riot Platforms reported a net loss of $84.4 million, or $0.32 per share, Missing Zack Research forecast a loss of $0.16 per share.
Halving increases competitive pressures.
The Colorado-based company revealed that the average cost of mining a single bitcoin in the second quarter, including energy credits, rose to $25,327, a significant 341% increase from $5,734 per bitcoin in the same quarter in 2023. Despite this significant increase in production costs, the company remains optimistic about maintaining competitiveness through recent deals.
For example, following its recent acquisition of cryptocurrency mining company Block Mining, Riot has raised its hashrate guidance from 31 EH/s to 36 EH/s by the end of 2024, with 2025 guidance increasing from 40 EH/s to 56 EH/s.
Commenting on the company’s financials, Riot CEO Jason Lees said that despite the halving, the mining company was still successful in delivering “significant operational growth and executing on our long-term strategy.”
“Despite this decline in production available to all Bitcoin miners, Riot generated $70 million in revenue for the quarter and maintained strong gross profit margins in our core Bitcoin mining business.”
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Following its Q2 financial report, Riot Platforms shares fell 1.74% to $10.19, according to data from Google Finance. Meanwhile, the US mining company continues to pursue its Canadian competitor Bitfarms, recently acquiring an additional 10.2 million shares of BITF, increasing its stake in Bitfarms to 15.9%.
As crypto.news previously reported, Riot first announced a $950 million takeover bid for Bitfarms in late May, claiming that Bitfarms’ founders had not acted in the best interests of all shareholders. They said that Bitfarms’ board of directors rejected their proposal without substantial input.
In response, Bitfarms said Riot’s offer “significantly diminishes” its growth prospects. Bitfarms later implemented a shareholder rights plan — also known as a “poison pill” — to protect its strategic review process from hostile takeover attempts.