Riot Platforms, a Bitcoin mining company, announced a 19% increase in Bitcoin production for 2023, having mined a total of 6,626 Bitcoin.
The average cost of mining Bitcoin in 2023, after accounting for energy credits allocated to self-mining, was $7,539 per Bitcoin. This represents a 33% decrease from the average of $11,225 in 2022.
Riot Platforms revenue rises
Riot Platforms CEO Jason Liss revealed the company's exceptional performance in 2023, highlighting it as another important milestone in the company's journey as a vertically integrated Bitcoin (BTC) miner.
Les described total revenues of $281 million, production of 6,626 bitcoins, and profits of $71 million in energy credits through their innovative energy strategy.
The report revealed that the average cost of mining one Bitcoin in 2023 decreased by about $3,686 compared to the previous year. Specifically, Riot's average mining cost per Bitcoin was $7,539, down 33% from $11,225 in 2022, after taking into account energy credits allocated to self-mining.
Furthermore, the average value of Bitcoin in 2023 exceeded that of 2022, increasing revenue for the year to $280.7 million, compared to $259.2 million in the previous year. This support is primarily due to the average price of Bitcoin rising throughout 2023, in contrast to the bear market of 2022.
Lee also detailed Riot's strategic developments in 2023, including:
- Completion of the 700 MW Rockdale facility expansion
- Successful expansion of their energy strategy resulted in a low mining cost of $7,539 per Bitcoin
- Strategic partnership with MicroBT to secure long-term supply and stable price for the latest generation of miners
- Ongoing development of the 1 GW Corsicana facility, which is scheduled to be activated by the end of the first quarter of 2024 and is set to become the largest dedicated Bitcoin mining facility in the world upon completion.
The report highlighted Riot Platform's strengthened balance sheet, ending 2023 with about $597 million in cash, 7,362 bitcoins worth about $311 million based on year-end prices, and minimal long-term debt.
Lees stressed that Riot maintaining a strong balance sheet puts the company on the safest path within the industry to achieve its growth goals. He emphasized Riot's goals of achieving a total hash rate capacity of 28 EH/s by the end of 2024, 38 EH/s by the end of 2025, and eventually exceeding 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 halving event in 2024. This strategic move aims to boost mining capacity and potential profits ahead of the Bitcoin halving event.
By investing approximately $138.5 million USD in these miners, Riot Platforms has demonstrated its confidence in the future of Bitcoin mining and the expected increase in the value of Bitcoin.
The next-generation miners are scheduled to be deployed in Q1 2024, adding 7.6 exahashes per second (EH/s) to Riot Platforms' self-mining capacity, for a total of 20.1 exahashes per second (EH/s).
Separately, the Texas Blockchain Council (TBC) and Riot Platforms have filed a joint lawsuit against the US Department of Energy (DOE), the Energy Information Administration (EIA), and the US Office of Management and Budget (OMB) in US District Court. for the Western District of Texas on February 23.
The lawsuit challenges what plaintiffs see as excessive regulatory scrutiny from the Biden administration toward the cryptocurrency sector, particularly regarding energy consumption.
At the heart of the legal action is the EIA's emergency information gathering from various TBC members, including Riot's platforms, which plaintiffs say violates legal standards such as the Paperwork Reduction Act. The lawsuit criticized the government's approach as “sloppy” and “intrusive,” asserting that proper justifications and procedural adherence were not followed.
TBC and Riot Platforms seek to stop the Department of Energy and Energy Information Administration's data collection from identified commercial cryptocurrency miners and revoke Office of Management and Budget's approval of this effort.
