Riot Platforms, a bitcoin mining company based in Colorado, reported a narrowed net loss of $27.7 million for the second quarter of this year, driven by increased bitcoin production and record computing power. The company's earnings report, filed on August 9, revealed a 5.2 % rise in total revenue to $76.7 million compared to the second quarter of 2022. This growth was largely fueled by Bitcoin's 27% year-over-year expansion.
The quarter saw Riot Platforms produce 1,775 bitcoins. Mining revenue contributed significantly, totaling $49.7 million and constituting 64.7% of the firm's total revenue for the period. Additionally, the company received $13.5 million through its curt ailment credit. Despite reduced production levels, the drop in bitcoin's price helped counterbalance the effects.
Riot Platforms notably achieved an all-time high hash rate capacity of 10.7 exa hash per second during the quarter. The company foresees this capacity rising to 20.1 EH/s by the second quarter of 2024 and further to 35.4 EH/s by 2025. Th is projection aligns with Riot's acquisition of 33,280 miners at the end of June, coupled with the anticipation that the firm will exercise its right to purchase an additional 66,560 miners in the near future.
While Riot's shares initially experienced a 4.42% decrease earlier in the day, they further declined by 0.86% in after-hours trading following the release of the company's financial results. The second-quarter net loss figure marked a sharp reduction compared to the same period in the previous year, and it was also roughly half of the net loss recorded in the first quarter of 2023. The average cost of mining bitcoin during the second quarter was $8,389, higher than the average price in the first quarter.
