Bitcoin mining has increased significantly this year as the blockchain network recorded a fresh all-time high hashrate in the second quarter of the year. Mining revenues also increased as Bitcoin saw a acute raise in transaction volume.
As a result, Riot Blockchain, one of the largest publicly traded Bitcoin mining companies in the US, saw operations grow in the second quarter. According to its second quarter 2023 financial results, the mining company posted a fresh all-time high while also increasing its Bitcoin mining operations.
Solid second quarter of 2023
According to him financial reportRiot has seriously stepped up its Bitcoin mining activities. As a result, the mining company produced 1,775 BTC in the second quarter of 2023, an raise of 27% compared to the 1,395 BTC produced during the same period in 2022.
In May 2023 alone, the company produced 676 BTC, an average of 21.8 BTC per day. The average cost of mining each bitcoin was $8,389, meaning the average in Q2 2022 was $11,316.
Riot also witnessed an raise in mining revenue as Bitcoin miners generated a remarkable total revenue of $2.4 billion. Although Bitcoin’s price this quarter was 15% lower than in Q2 2022, Riot reported total revenues of $76.7 million compared to $72.9 million in Q2 2022. Mining revenues (49, $7 million), engineering revenue ($19.3 million), data hosting revenue ($7.7 million) and capacity curtailment credits ($13.5 million) were also higher than in Q2 2022.
Not only has RIOT’s bitcoin mining revenue increased, but their actual bitcoin holdings have also increased significantly. As of June 30, Riot held 7,264 BTC, and the price of each BTC was $30,477.
In total, Riot ended the quarter with $408.4 million in working capital, including $289.2 million in cash and $221.4 million in bitcoin, while reducing its net loss to $27.7 million from $353.6 million in the second quarter of 2022
BTC price remains volatile | Source: BTCUSD on Tradingview.com
Increasing bitcoin mining power
Riot Blockchain also dramatically increased its hash rate during the quarter, reaching an all-time record throughput of 10.7 EH/s. However, the company also plans to raise its computing power.
During the quarter, the company signed a long-term purchase agreement with MicroBT to acquire 33,280 next-generation excavators. Riot believes it will raise to 20.1 EH/s by Q2 2024 thanks to its expanded mining fleet and facilities.
Bitcoin mining is an energy-intensive process. However, Riot’s energy strategy contributes to the stability of the Texas power grid during periods of high demand by selling additional energy back to the grid. As of this writing, Riot shares are up 1.53% on a daily basis and 158.14% over the past six months.
Featured image from PYMNTS, chart from Tradingview.com
