As a seasoned crypto investor with a deep understanding of the market dynamics, I find Riot Platforms’ Q1 2024 financial results both impressive and concerning in equal measure. The record-breaking net income of $211.8 million, a 1,000% increase from the same period last year, is certainly an encouraging sign for Bitcoin miners like Riot. However, missing analyst revenue estimates by a significant margin is not ideal.
In Q1 2024, Bitcoin mining company Riot Platforms announced a record-breaking net income of $211.8 million, marking a significant leap of 1,000% compared to the same period in the previous year. However, the firm fell short of analysts’ expectations regarding revenue.
In the first quarter of this year, Riot reported a significant surge in mini revenue, amounting to $74.6 million, which represents a 55.4% rise from the same period last year. This notable growth can be attributed mainly to Bitcoin’s price increase by over 130%.
The firm’s total revenue was $79.3 million, fallin 14% short of estimates by research firm Zacks.
The miner explained that while there was an uptick in total earnings and bitcoin extracted, the progress was hindered by two factors: a decrease in bitcoin output as a result of heightened network complexity and increased hash rate, and higher operating expenses due to this very same complexification.
In Q1 2023, Riot extracted 1,364 Bitcoins, marking a 36% reduction from the previous year’s first quarter. The cost to mine a single Bitcoin averaged at $23,000 – representing a substantial 144% increase in comparison to the same period last year. Riot attributed this significant price hike mainly to a steep 89% rise in the global network hash rate.
Last month, Riot unveiled plans for a new Bitcoin mining facility in Corsicana, Texas, with CEO Jason Les anticipating it to be the biggest of its kind globally upon completion.
As a crypto investor, I’d rephrase it like this: The mining company announced its intention to boost its hashing power from the current 12.4 exahashes per second (EH/s) to an impressive 31 EH/s by year-end.
I, as an analyst, predict that my company’s hash rate will reach 41 exahashes per second (EH/s) once our Corsicana facility is fully deployed in 2025. Our long-term objective is to surpass this mark and achieve a hash rate of 100 EH/s or sooner, around the year 2027.
According to Hashrate Index, Riot ranks third among miner companies with a hash rate of 24.7 exahashes per second (EH/s). This is slightly lower than the leading miners Marathon Digital and Core Scientific, which have hash rates of 28.6 EH/s and 16.9 EH/s respectively.
The stock price for Riot decreased by 2.87% and landed at $9.82 during the May 1 trading session, as reported by Google Finance. However, there’s been a 1.1% increase in the share value during after-hours trading.
As a researcher studying the Bitcoin market, I’ve observed that miners have been adapting following the reduction of mining rewards in the April 2020 halving event from 6.25 BTC to 3.125 BTC. Currently, this amount is valued around $180,600.
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2024-05-02 03:31