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Bitcoin Mining Firm Riot Rakes in Record $281M in Revenues in 2023, Producing 6,626 BTC

Ruholamin Haqshanas
Last updated: | 2 min read
Bitcoin mining
Source: Midjourney

Bitcoin (BTC) mining firm Riot Platforms achieved impressive results in 2023, with total revenues reaching an all-time high of $281 million.

In a Thursday press release, the company’s CEO Jason Les expressed satisfaction with Riot’s performance last year, highlighting several significant achievements.

The company said it produced 6,626 Bitcoins during the year, a 19% increase compared to 5,554 during the same twelve-month period in 2022.

“I am pleased to announce results for Riot for 2023, which proved to be another milestone year in Riot’s ongoing development as a leading vertically integrated Bitcoin miner,” Les wrote.

He added that Riot has made substantial progress in key strategic areas.

These include completing the expansion of their Rockdale Facility, which now boasts a capacity of 700 megawatts.

The company also struck a significant partnership with MicroBT, securing a long-term, fixed-price supply of the latest-generation mining equipment.

Furthermore, Riot is actively developing its Corsicana Facility, a 1 gigawatt mining facility set to energize at the end of Q1 2024.

Once fully operational, Corsicana will become the world’s largest dedicated Bitcoin mining facility.

Bitcoin Mining Revenue Accounted for $189.0 million

Breaking down the financial results for the fiscal year 2023, Riot said it generated a total revenue of $280.7 million.

The company detailed that Bitcoin Mining revenue accounted for $189.0 million, Data Center Hosting revenue amounted to $27.3 million, Engineering revenue stood at $64.3 million, and other revenue contributed $0.1 million.

Bitcoin Mining revenue exceeded the mining cost of revenue, totaling $92.4 million, representing 48.9% of mining revenue.

This marked an increase of $9.9 million compared to the same period in 2022.

The rise in Bitcoin Mining cost of revenue can be attributed to the expanded mining capacity at the Rockdale Facility, which needed increased direct costs and headcount to support operations.

Data Center Hosting costs exceeded revenue by $69.8 million, primarily due to direct power costs and additional expenses related to compensation and rent.

By the end of 2023, the company held approximately $597 million in cash and 7,362 Bitcoins, valued at around $311 million based on year-end Bitcoin prices.

Riot Received Over $71 Million in Power Credits

Riot’s long-term power agreements allow them to return unused power and receive power credits at market-driven spot prices.

In the twelve-month period ending on December 31, 2023, Riot received power credits amounting to $71.2 million, compared to $27.3 million in the same period in 2022.

These credits equated to approximately 2,497 Bitcoins based on average daily closing Bitcoin prices on a monthly basis.

Furthermore, Riot reported selling, general, and administrative expenses of $100.3 million for 2023, up from $67.5 million in 2022.

In terms of net loss, Riot recorded $(49.5) million, or $(0.28) per share, in 2023, compared to a net loss of $(509.6) million, or $(3.65) per share, in 2022.

The net loss in 2023 included non-cash stock-based compensation of $32.2 million and depreciation and amortization of $252.4 million.

More recently, Riot has joined the Texas Blockchain Council (TBC) to sue the US Energy Information Administration (EIA), accusing the agency of making unlawful data collection demands from the Bitcoin mining sector.