CASTLE ROCK, Colo. - Riot Platforms, Inc. (NASDAQ: NASDAQ:RIOT), a prominent player in Bitcoin mining, has reported a significant increase in Bitcoin production for October 2024. The company produced 505 Bitcoin, marking a 23% rise from September and a 10% increase year-over-year. This growth is attributed to an expansion in the deployed hash rate, which reached 29.4 EH/s, powered by new MicroBT miner deployments at the Corsicana Facility.
The company's operational efficiency improvements were highlighted by CEO Jason Les, who expressed satisfaction with the positive trajectory. Riot Platforms did not sell any Bitcoin in October, contrasting with the 440 Bitcoin sold in October 2023. The company's Bitcoin holdings now total 10,928, up from 10,427 at the end of September and a significant jump from 7,345 a year earlier.
Riot's operational hash rate also saw substantial gains, with the total average operating hash rate for October surging to 22.7 EH/s, a 16% increase from September and a 234% jump compared to the same period last year.
In terms of power costs, the all-in power cost across all facilities averaged 3.9c/kWh, reflecting a 10% increase from September and a 16% rise year-over-year. Power credits for October amounted to $1.0 million, a decrease from the $2.2 million reported in September and down 65% from the $2.8 million in October 2023.
The Corsicana Facility is nearing the completion of its Phase 1 development, which is expected to provide 400 MW of mining capacity. Additionally, Riot has commenced the development of Phase 2, which aims to add 600 MW and is set to begin operation in the second half of 2025.
Investors may also note Riot's participation in upcoming conferences, including events in Miami, New York City, and Dallas throughout November.
This report is based on a press release statement from Riot Platforms, Inc. and presents the company's latest operational achievements and growth in the Bitcoin mining sector.
In other recent news, Riot Platforms experienced a cut in its target price from $18 to $13 by Compass Point due to a disappointing third-quarter earnings report. The cryptocurrency mining company's revenue and adjusted EBITDA fell short of expectations. Additionally, the company revised its year-end hash rate target for 2024 and 2025, citing several reasons such as permitting delays and potential supply-chain constraints. Despite these setbacks, analysts from Compass Point, H.C. Wainwright, and ATB Capital Markets maintained a Buy rating, highlighting potential for improved cost structure and benefit from higher Bitcoin prices. Riot Platforms also reported higher engineering revenues and a 127% EH/s increase in deployed capacity year-to-date. The company's Corsicana facility saw the completion of its third 100 MW building, contributing to the operational efficiency improvements and positioning the company favorably for future growth. Furthermore, Riot Platforms achieved its September Bitcoin production target, mining 412 Bitcoin and increasing its total Bitcoin holdings to 10,427. This was attributed to an enhanced operational hash rate and significant contributions from its facilities. The company also completed the development of the third 100 MW building at its Corsicana Facility. These are among the recent developments for Riot Platforms.
InvestingPro Insights
Riot Platforms' recent operational success is reflected in its financial metrics and market performance. According to InvestingPro data, the company's revenue growth has been impressive, with a 63.39% increase in the most recent quarter. This aligns with the reported 23% rise in Bitcoin production for October 2024.
Despite the positive production figures, investors should note that Riot's stock has experienced volatility. An InvestingPro Tip highlights that the stock has taken a big hit over the last week, with a 1-week price total return of -10.61%. However, this short-term dip contrasts with a strong 20.25% return over the last month, suggesting that market sentiment may be aligning with the company's operational improvements.
Another relevant InvestingPro Tip indicates that Riot is expected to be profitable this year, which could be attributed to the increased Bitcoin production and the company's decision to hold onto its mined Bitcoin rather than selling. This strategy may contribute to the company's financial strength, as Riot holds more cash than debt on its balance sheet.
For investors seeking a more comprehensive analysis, InvestingPro offers 14 additional tips for Riot Platforms, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.