Bitcoin mining company Riot Platforms reported a 19% increase in Bitcoin production in 2023, with a total of 6,626 BTC mined.
The cost of mining Bitcoin in 2023 averaged $7,539 per Bitcoin after accounting for power credits allocated for self-mining. This is a 33% decrease from the 2022 average of $11,225.
Riot Platforms' revenue soars
Riot Platforms CEO Jason Les announced the company's outstanding performance in 2023, marking another milestone in the company's journey as a vertically integrated Bitcoin (BTC) miner. He emphasized that it is a milestone.
Mr. Leth touted $281 million in total revenue from innovative power strategies, 6,626 Bitcoins produced, and $71 million in revenue in power credits.
The report revealed that the average cost to mine 1 Bitcoin in 2023 decreased by approximately $3,686 compared to the previous year. Specifically, Riot's mining cost per Bitcoin, taking into account power credits allocated for self-mining, averaged $7,539, down 33% from $11,225 in 2022.
Additionally, the average value of Bitcoin in 2023 was higher than the average value in 2022, with revenue that year increasing to $280.7 million from $259.2 million the previous year. This boost is primarily due to Bitcoin's average price increasing throughout 2023, in contrast to the 2022 bear market.
Les further elaborated on Riot's strategic advancements in 2023.
- Expansion of 700 MW Rockdale facility completed
- Power strategy successfully scales to achieve mining costs as low as $7,539 per Bitcoin
- Strategic partnership with MicroBT ensures long-term fixed-price supply of the latest generation of miners
- Development of the 1 GW Corsicana facility is underway and is expected to be operational by the end of the first quarter of 2024, and upon completion will be the world's largest dedicated Bitcoin mining facility.
The report highlights the strength of Riot Platform's balance sheet, opening 2023 with approximately $597 million in cash, 7,362 Bitcoin worth approximately $311 million based on year-end prices, and minimal long-term debt. Concluded.
Les emphasized that Riot's strong balance sheet puts it on the safest path in the industry to achieve its growth goals. He confirmed Riot's goal of increasing its total hashrate capacity to 28 EH/s by the end of 2024, 38 EH/s by the end of 2025, and ultimately over 100 EH/s.
Strategic expansion amid regulatory uncertainty
In June 2023, Riot Platforms expanded its operations by acquiring 33,000 new Bitcoin miners ahead of the 2024 halving event. This strategic move was aimed at increasing mining capacity and profit potential ahead of the Bitcoin halving event.
Riot Platforms, which invested approximately $138.5 million in these miners, expressed confidence in the future of Bitcoin mining and the expected rise in Bitcoin's value.
The introduction of these next-generation miners is scheduled for the first quarter of 2024 and will add 7.6 exahashes per second (EH/s) to Riot Platforms' self-mining capacity, reaching a total of 20.1 EH/s.
Separately, the Texas Blockchain Council (TBC) and Riot Platforms are jointly providing U.S. regional filed a lawsuit in court. on Feb. 23 in the Western District of Texas.
The lawsuit challenges what the plaintiffs perceive to be excessive regulatory oversight of the crypto sector by the Biden administration, particularly regarding energy consumption.
The lawsuit centers on EIA's collection of emergency information from various TBC members, including the Riot Platform, which the plaintiffs claim violates legal standards such as the Paperwork Reduction Act. ing. The lawsuit criticizes the government's approach as “sloppy” and “invasive” and alleges that proper justifications and procedures were not followed.
TBC and Riot Platform seek to halt DOE and EIA data collection from identified commercial crypto miners and revoke OMB approval for this effort.
