Bitcoin (BTC) mining company Riot Platforms (RIOT) said its second-quarter losses tripled compared to the same period last year as general operating costs rose 48%.
Riot Platforms (RIOT) recently issued a press release showing that the company's general operating costs increased by 48%, resulting in a net loss of US$84.4 million in the second quarter of this year, or a loss of US$0.32 per share, which was predicted by investment research firm Zacks per share. The loss of $0.16 doubled, marking the company's first quarterly loss since the fourth quarter of 2022.
The report shows that selling, general and administrative expenses for the quarter rose to $61.2 million, an increase of $41.4 million compared with the same period last year, and more than half of this amount (or $32.1 million) was due to newly granted shares under the long-term incentive plan. Compensation expenses.
Bitcoin’s halving event in April reduced miners’ block rewards by 50%, which directly led to a reduction in Riot’s Bitcoin output during the quarter. The company mined 844 Bitcoins during the quarter, compared with the same period last year. It decreased by 52%. At the same time, the cost of Bitcoin mining soared from US$5,734 to US$25,327 due to a 68% increase in the computing power of the entire network.
However, Riot's Bitcoin mining revenue still grew by 12% compared to the same period last year, due to the nearly 100% increase in Bitcoin prices between June 30, 2023, and June 30, 2024. In addition, Riot also nearly doubled its installed computing power in the second quarter to 22 EH/s per second, and expects its total self-mining computing power capacity to reach 36 EH/s by the end of 2024.
Riot's shares have fallen nearly 33.8% so far in 2024, while rival CleanSpark (CLSK) has gained 47%, replacing Riot as the second-largest Bitcoin miner by market capitalization.
