CASTLE ROCK, Colo. - Riot Platforms, Inc. (NASDAQ: NASDAQ:RIOT), a prominent player in Bitcoin mining, has surpassed its second-quarter target for 2024 by achieving a deployed hash rate of 22.0 exahashes per second (EH/s). The company also reported producing 255 bitcoins in June, marking a 19% increase from May but a 45% decrease from the same month the previous year.
The substantial growth in deployed hash rate is attributed to the addition of 7.3 EH/s at Riot's Corsicana Facility and the utilization of additional capacity at its Rockdale Facility. CEO Jason Les credited the rapid deployment to the team's expertise, noting that the latest generation MicroBT miners were energized mostly in the last days of June, setting the stage for improved efficiency and productivity.
Riot also introduced a new monthly reporting metric for its cost of power, net of power credits. In June, the company earned $6.2 million in power credits, resulting in an estimated net cost of power of 2.4 cents per kilowatt-hour (c/kWh) at Rockdale and 3.9c/kWh at Corsicana. The combined cost of 2.6c/kWh across both facilities is touted as one of the lowest in the industry and a key competitive advantage for Riot.
The company's power strategy involves being a flexible consumer of power, reducing consumption or curtailing operations during peak demand periods. This approach contributed to substantial savings on future transmission costs and is part of Riot's collaborative relationship with the grid.
Riot continues to develop its Corsicana Facility, with the first 100 megawatt (MW) building completed in June and progress on the third building on schedule. The company expects to achieve a total self-mining hash rate capacity of 31 EH/s by the end of 2024, with full deployment in 2025 reaching 41 EH/s.
This news is based on a press release statement from Riot Platforms, Inc.
In other recent news, Riot Platforms, a significant player in the Bitcoin mining industry, has been involved in a series of strategic moves. After a rejected $950 million acquisition bid, Riot is now seeking representation on the board of Bitfarms, a competitor it previously attempted to acquire. Riot, which holds a substantial 15% stake in Bitfarms, has nominated three independent directors to the Bitfarms board.
Cantor Fitzgerald initiated coverage on Riot Platforms with an Overweight rating, highlighting its competitive advantages such as low cost of mining, significant scale, and a strong balance sheet. The firm also pointed out Riot's expected organic capacity growth over the next 18 months and the proposed acquisition of Bitfarms.
Additionally, Riot Platforms reported a decrease in Bitcoin production in May 2024 but managed to increase its total deployed hash rate to 14.7 exahashes per second. The company also announced the completion of the first 100 MW building at the Corsicana Facility in Texas, contributing to its mining capacity. Riot anticipates reaching a self-mining hash rate capacity of 31 EH/s by the end of 2024.
Riot Platforms proposed a $950 million acquisition of Bitfarms. The offer represents a 24% premium over Bitfarms' one-month volume-weighted average price. However, H.C. Wainwright analysts expressed skepticism about the deal's completion. Meanwhile, Bernstein SocGen Group maintained an Outperform stock rating on Riot Platforms in light of the recent move to acquire a significant stake in Bitfarms.
InvestingPro Insights
As Riot Platforms, Inc. (NASDAQ: RIOT) strides ahead in the Bitcoin mining industry by surpassing its hash rate targets and introducing competitive power costs, investors are keen to understand the financial health and future prospects of the company. Here are some key insights from InvestingPro to consider:
InvestingPro Data indicates that Riot holds more cash than debt on its balance sheet, which could provide a cushion against market volatility and enable continued investment in growth. Furthermore, the company's liquid assets exceed its short-term obligations, suggesting a strong liquidity position that can support ongoing operations and strategic initiatives.
However, despite the optimistic operational updates, InvestingPro Tips signal some caution. Analysts do not anticipate the company will be profitable this year, and there is an expectation of a drop in net income. Additionally, the company's stock price has shown considerable volatility, which potential investors should be wary of.
For those looking to delve deeper into Riot's financials and performance metrics, InvestingPro offers a comprehensive list of additional tips. There are currently 16 more InvestingPro Tips available, which can be accessed by visiting https://www.investing.com/pro/RIOT. These tips provide valuable insights into sales growth projections, cash burn rates, profitability, and valuation multiples, all of which are crucial for making informed investment decisions.
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