Bitcoin miner Riot Platforms reports wider losses in Q2, buys more Bitfarms shares

    theblock.co 01/08/2024 - 06:55 AM

    Riot Platforms Reports Q2 Losses

    Bitcoin (BTC) mining firm Riot Platforms announced wider losses in the second quarter of this year as the effects of April’s bitcoin halving continue to impact operations.

    Riot reported a net loss of $84.4 million for Q2, compared to $27.4 million during the same period last year, according to the company’s latest quarterly report released on Wednesday.

    The miner’s total revenue fell to $70 million this quarter from $76.7 million a year ago. Riot stated, “The decrease was primarily driven by a $9.7 million decrease in engineering revenues offset by a $6 million increase in Bitcoin mining revenue.”

    Riot also produced significantly less bitcoin this quarter, with 844 bitcoin mined, reflecting a 52% decline year-on-year. This reduction was attributed mainly to the halving event and increasing network difficulty.

    In Q2, Riot nearly doubled its installed hash rate, reaching a total capacity of 22 EH/s as of the end of June. CEO Jason Les expressed the company’s goal to achieve a total self-mining hash rate of 36 EH/s by year-end.

    Buying More Bitfarms Shares

    Moreover, Riot is actively pursuing a takeover of rival Bitfarms, having purchased around 10.2 million additional Bitfarms shares in July, according to a filing released Wednesday. In May, Riot announced plans to acquire Bitfarms for approximately $950 million, while Riot’s CEO criticized Bitfarms’ efforts to block the acquisition. In response, Bitfarms introduced a “poison pill” strategy to thwart any potential takeover and later enhanced this defensive measure.

    As of closing Wednesday, Riot shares on Nasdaq fell 1.74%, while Bitfarms shares rose 4.03%. Year-to-date, Riot’s stock has decreased by 33.87%.




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