Riot Announces December 2023 Production and Operations Updates
- 619 Bitcoin produced in December 2023, a 12% increase over the previous month
- 29% increase in net proceeds from Bitcoin sales
- 18% increase in the average net price per Bitcoin sold
- Riot is well positioned to increase its self-mining hash rate to 28 EH/s by the end of 2024
- Ended the year with approximately $590 million in cash on hand and 7,362 in unencumbered Bitcoin on the balance sheet, representing total liquidity of approximately $901 million as of the end of 2023
- Decrease in deployed hash rate and miners
- Infrastructure development and miner deployment expected to take time
Riot Platforms, Inc.'s December 2023 report exhibits a robust increase in Bitcoin production by 12% month-over-month and a significant year-over-year sales revenue growth of 147%. The reported average net price per Bitcoin sold shows a substantial appreciation, indicative of a favorable selling environment or strategic sales timing. The company's liquidity position, with $590 million in cash and 7,362 unencumbered Bitcoin, reflects a strong balance sheet, which is crucial for sustaining operations and funding future expansions.
However, the reduction in power and demand response credits by 87% and 68% respectively, could signal a shift in operational costs or changes in the regulatory environment that could impact future profitability. The company's aggressive expansion plan, aiming to increase its self-mining hash rate capacity to 28 EH/s by the end of 2024, suggests a strategic focus on scaling up operations to capitalize on economies of scale. Investors should monitor the execution of this expansion and the associated capital expenditures, as they will be critical in determining the company's competitiveness in the Bitcoin mining industry.
The cryptocurrency mining sector is highly sensitive to Bitcoin price fluctuations and energy costs. Riot's ability to mine 6,626 Bitcoin in 2023 and the strategic use of a unique power strategy, which yielded $71.6 million in power credits, demonstrate an effective cost management approach in a volatile market. The company's focus on expanding its infrastructure, as evidenced by the development of the Corsicana Facility, positions it to potentially benefit from increased mining capacity in the future.
However, the hash rate deployment remaining constant at 12.4 EH/s while the number of deployed miners decreased by 28% year-over-year could raise concerns about the efficiency and technological advancement of the mining equipment. The industry is moving towards more energy-efficient mining solutions and Riot's ability to stay ahead with competitive technology will be pivotal. The long-term purchase agreements with MicroBT indicate proactive measures to secure state-of-the-art mining equipment, which could enhance the company's operational efficiency and profitability.
Riot's unique power strategy, which has generated substantial power credits, highlights the company's innovation in cost reduction and energy management within the Bitcoin mining industry. The ability to generate $71.6 million in power credits is indicative of a strategic approach to leveraging energy market dynamics, potentially through power curtailment and participation in ERCOT demand response programs. These strategies can provide a hedge against volatile energy prices and enhance the company's profitability.
The significant investment in infrastructure, with the Corsicana Facility adding 400 megawatts of capacity in its initial phase, reflects a commitment to long-term growth and sustainability. The energy demands of such an expansion will necessitate continued innovation in energy procurement and management. Investors should consider the potential impact of energy regulations and market conditions on Riot's operational costs and overall financial performance.
Riot Produces 619 Bitcoin in December 2023, Bringing Total Bitcoin Produced in 2023 to 6,626 while Significantly Expanding Use of Riot’s Unique Power Strategy During the Year
CASTLE ROCK, Colo., Jan. 04, 2024 (GLOBE NEWSWIRE) -- Riot Platforms, Inc. (NASDAQ: RIOT) (“Riot” or “the Company”), an industry leader in Bitcoin (“BTC”) mining and data center hosting, announces unaudited production and operations updates for December 2023.
Bitcoin Production and Operations Updates for December 2023
| Annual | Monthly | Monthly Comparison (%) | |||||||
| Metric | FY 2023 | December 2023 | November 2023 | December 2022 | Month/Month | Year/Year | |||
| Bitcoin Produced | 6,626 | 619 | 552 | 681 | 12% | -9% | |||
| Average Bitcoin Produced per Day | 18.2 | 20.0 | 18.4 | 22.0 | 8% | -9% | |||
| Bitcoin Held | 7,362 1 | 7,362 2 | 7,342 2 | 6,974 2 | 0% | 6% | |||
| Bitcoin Sold | 6,185 | 590 | 540 | 600 | 9% | -2% | |||
| Bitcoin Sales - Net Proceeds | 29% | 147% | |||||||
| Average Net Price per Bitcoin Sold | 18% | 151% | |||||||
| Deployed Hash Rate | 12.4 EH/s 1 | 12.4 EH/s 2 | 12.4 EH/s 2 | 9.7 EH/s 2 | - | 27% | |||
| Deployed Miners | 112,944 1 | 112,944 2 | 112,944 2 | 88,556 2 | - | 28% | |||
| Power Credits 3 | -87% | -99% | |||||||
| Demand Response Credits 4 | -68% | -10% | |||||||
- Unaudited, as of year-end.
- As of month-end.
- Power curtailment credits.
- Credits received from participation in ERCOT demand response programs.
- Unaudited, estimated.
“December’s strong performance capped off a successful 2023 for Riot, with 619 Bitcoin mined during the month, representing a
Infrastructure Update
Riot is currently developing Phase 1 of the Company’s second large-scale facility, the Corsicana Facility, which will add an additional 400 megawatts of capacity upon completion of this initial phase. Once fully developed, the Corsicana Facility will have up to 1 gigawatt in total capacity.
During December, the foundation was poured for the first building at the Corsicana Facility, Building A1, and the structure is in process of being erected. Building A1 is expected to be energized by the end of Q1 2024, and the additional buildings comprising the 400 MW Phase 1 buildout of the Corsicana Facility will be energized in the proceeding months.
Estimated Hash Rate Growth
In June 2023, Riot entered into a long-term purchase agreement with MicroBT, which included an initial order of 33,280 Bitcoin miners for its Corsicana Facility. Effective December 1, 2023, Riot executed a second order under the MicroBT long-term purchase agreement for an additional 66,560 Bitcoin miners, primarily for its Corsicana Facility.
Collectively, the two purchase orders will add 26 EH/s to Riot’s self-mining capacity. Deployment of these miners is expected to begin in Q1 2024 and to be completed by the second half of 2025. Upon full deployment in 2025, Riot anticipates a total self-mining hash rate capacity of 38 EH/s.
2023 Year End Liquidity (Unaudited)
Riot ended the year with approximately
As of the end of 2023, Riot had approximately 230.8 million shares outstanding.
Conference Schedule:
- 26th Annual Needham Growth Conference held in New York, NY, January 17-18th.
- Nashville Energy and Mining Summit 2024 held in Nashville, TN, January 18-19th.
Human Resources Update
Riot is currently recruiting for positions across the Company. Join our team in building, expanding, and securing the Bitcoin network.
Open positions are available at: https://www.riotplatforms.com/careers.
About Riot Platforms, Inc.
Riot’s (NASDAQ: RIOT) vision is to be the world’s leading Bitcoin-driven infrastructure platform. Our mission is to positively impact the sectors, networks, and communities that we touch. We believe that the combination of an innovative spirit and strong community partnership allows the Company to achieve best-in-class execution and create successful outcomes.
Riot is a Bitcoin mining and digital infrastructure company focused on a vertically integrated strategy. The Company has data center hosting operations in central Texas, Bitcoin mining operations in central Texas, and electrical switchgear engineering and fabrication operations in Denver, Colorado.
For more information, visit www.riotplatforms.com.
Safe Harbor
Statements in this press release that are not historical facts are forward-looking statements that reflect management’s current expectations, assumptions, and estimates of future performance and economic conditions. Such statements rely on the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Words such as “anticipates,” “believes,” “plans,” “expects,” “intends,” “will,” “potential,” “hope,” and similar expressions are intended to identify forward-looking statements. These forward-looking statements may include, but are not limited to, statements about the benefits of acquisitions, including financial and operating results, and the Company’s plans, objectives, expectations, and intentions. Among the risks and uncertainties that could cause actual results to differ from those expressed in forward-looking statements include, but are not limited to: unaudited estimates of Bitcoin production; our future hash rate growth (EH/s); the anticipated benefits, construction schedule, and costs associated with the Corsicana site expansion; our expected schedule of new miner deliveries; the impact of weather events on our operations and results; our ability to successfully deploy new miners; the variance in our mining pool rewards may negatively impact our results of Bitcoin production; megawatt (“MW”) capacity under development; we may not be able to realize the anticipated benefits from immersion-cooling; the integration of acquired businesses may not be successful, or such integration may take longer or be more difficult, time-consuming or costly to accomplish than anticipated; failure to otherwise realize anticipated efficiencies and strategic and financial benefits from our acquisitions; and the impact of COVID-19 on us, our customers, or on our suppliers in connection with our estimated timelines. Detailed information regarding the factors identified by the Company’s management which they believe may cause actual results to differ materially from those expressed or implied by such forward-looking statements in this press release may be found in the Company’s filings with the U.S. Securities and Exchange Commission (the “SEC”), including the risks, uncertainties and other factors discussed under the sections entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, as amended, and the other filings the Company makes with the SEC, copies of which may be obtained from the SEC’s website, www.sec.gov. All forward-looking statements included in this press release are made only as of the date of this press release, and the Company disclaims any intention or obligation to update or revise any such forward-looking statements to reflect events or circumstances that subsequently occur, or of which the Company hereafter becomes aware, except as required by law. Persons reading this press release are cautioned not to place undue reliance on such forward-looking statements.
Investor Contact:
Phil McPherson
303-794-2000 ext. 110
IR@Riot.Inc
Media Contact:
Alexis Brock
303-794-2000 ext. 118
PR@Riot.Inc
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/3e9749c3-5aed-4bc8-9ff9-1ca5d25fa3c7
FAQ
How many Bitcoin did Riot Platforms, Inc. produce in December 2023?
What is Riot Platforms, Inc.'s ticker symbol?
What was the percentage increase in net proceeds from Bitcoin sales for Riot Platforms, Inc.?
What is Riot Platforms, Inc.'s plan to increase its self-mining hash rate?
How much liquidity did Riot Platforms, Inc. have at the end of 2023?
