Bitcoin Miner Riot Blockchain Hashrate Reached an ATH in 2022
The Colorado-based bitcoin miner – Riot Blockchain – reported a total revenue of nearly $260 million for 2022, an increase of 22% compared to 2021. It mined 5,554 BTC and increased its hash rate capacity to an all-time high of 9, 7 EH/s .
The positive results come despite the devastating bear market that reigned for much of the year, and Riot’s reduced production levels in the summer due to a heat wave.
Against all odds
Riot produced 46% more bitcoin in 2022 than in 2021. However, the crypto market collapse affected the BTC mining revenue which was $156 million compared to the $184 million recorded the previous year.
CEO Jason Les described Riot’s performance in 2022 as “remarkable”, highlighting reaching the ATH in hash rate capacity of 9.7 EH/s (the figure was 3.1 EH/s as of 31 December 2021), the expansion at the Rockdale Facility, and maintaining a “strong financial position”.
“We more than tripled our hash rate capacity, leading to a series of monthly production records, and ended the year at an all-time high of 9.7 EH/si hash rate capacity, which is a testament to the hard work put in by our best-in-class team throughout 2022.
Three new buildings at our Rockdale facility were completed in 2022, and a fourth is nearing completion in Q1 2023, which, once completed, will complete the expansion of the Rockdale facility,” the executive explained.
Riot also realized significant benefits from its power strategy that allowed it to cut production costs. Despite the unsatisfactory state of the cryptocurrency sector, the firm ended 2022 with approximately $230 million in cash and no long-term debt. It had 6,974 BTC at the end of the year (currently worth over $156 million) and vowed to follow its expansion plans through 2023.
The miner’s results could have been even more impressive if a massive heat wave had not affected the Texas region (where most of the mining fleet is located) during the summer. As The crypto potato reportedRiot produced nearly 30% less bitcoin in July than in June because it had to shut down some of its machinery as temperatures hovered around 40 degrees Celsius.
It’s not all rainbows and sunshine
Alongside the positive mining performance, Riot reported a net loss of nearly $510 million in 2022 (compared to just $15.4 million in 2021). Diluted net loss per share rose from $0.17 in 2021 to $3.65 last year.
The extended crypto winter has negatively impacted RIOT’s stock which is currently worth around $6.20, down 61% year over year.
