Riot Platforms Reports $211.8M Q1 2024 Net Income, Falls Short of Revenue Expectations

Bitcoin mining firm Riot Platforms has announced a remarkable net income of $211.8 million for the first quarter of 2024, a staggering 1,000% increase compared to the same period last year. ,However, despite this impressive performance, Riot Platforms fell short of analyst revenue estimates.,Riot Platforms 
released Q1 results
 on May 1, revealing that mining revenue experienced a significant 55.4% year-on-year surge, reaching $74.6 million.,This growth was primarily attributed to a remarkable 131% increase in the price of Bitcoin. ,While the total revenue of the company amounted to $79.3 million, it fell approximately 14% short of the expectations set by research firm Zacks.,


Riot Platforms acknowledged that the progress in net income and mining revenue was somewhat hindered by lower Bitcoin production and higher mining costs. ,These factors were primarily influenced by the increase in Bitcoin’s network difficulty and hash rate. ,The company mined 1,364 BTC during Q1, marking a 36% decrease compared to the same period in 2023. ,Additionally, the average cost to mine 1 BTC stood at $23,000, reflecting a substantial 144% increase compared to the previous year, driven by an 89% surge in the global network hash rate.,Furthermore, Riot Platforms recently unveiled plans for a new facility situated in Corsicana, Texas. ,CEO Jason Les expressed confidence that the facility, once fully developed, would become the largest dedicated Bitcoin mining facility globally. ,The company aims to increase its hash rate capacity from 12.4 
exahashes
 per second (EH/s) to 31 EH/s by the end of this year. ,It anticipates a further boost to 41 EH/s when the Corsicana facility is fully deployed in 2025. Riot Platforms has set a long-term goal of reaching 100 EH/s by 2027 or shortly after. ,Currently, the company holds the third-largest hash rate among miners, trailing behind Marathon Digital and Core Scientific.,Following the announcement, Riot’s share price experienced a 2.87% decline on May 1, reaching $9.82. ,However, it rebounded slightly with a 1.1% increase in after-hours trading, according to Google Finance. ,Notably, Riot Platforms 
achieved impressive results in 2023
, with total revenues reaching an all-time high of $281 million.,Earlier this year, Riot 
has
 joined the Texas Blockchain Council (TBC) to 
sue the US Energy Information Administration (EIA)
, accusing the agency of making unlawful data collection demands from the Bitcoin mining sector.,


Bitcoin miners, including Riot Platforms, have been adjusting their operations after the halving event on April 20, which reduced mining rewards from 6.25 BTC to 3.125 BTC, equivalent to approximately $180,600 at present.,As reported, a notable outflow of Bitcoin from miners could be on the horizon in the months following the upcoming halving event.,In a recent note, Markus Thielen, the head of research at 10x Research, estimated that Bitcoin miners have the potential to liquidate 
approximately $5 billion worth of BTC
 after the halving.,Asset manager 
CoinShares analysis suggests
 that Riot, TeraWulf, and CleanSpark are among the best-positioned companies to weather the impending storm.,Higher Mining Costs Halt Riot’s Progress