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Riot Platforms, a prominent Bitcoin mining company, has reported a decline in its Bitcoin production for August 2024, yet remains optimistic about future growth and efficiency improvements. The company has disclosed that its Bitcoin holdings have increased to over 10,000 BTC, reflecting a 37% rise from the same period last year.
In August 2024 Riot Platforms experienced a 13% reduction in Bitcoin production compared to July. The decrease in output is attributed to broader challenges faced by Bitcoin mining firms, including rising energy costs and adjustments following the Bitcoin network’s halving event in April, which reduced mining rewards from 6.25 BTC to 3.125 BTC per block.
During August, Riot produced 322 BTC, down from 370 {Bitcoin} (BTC) in July and a slight 3% decrease from the 333 BTC produced in August 2023. Unlike the previous year, when the company sold 300 BTC and generated net proceeds of $8.6 million, Riot did not conduct any Bitcoin sales in August.
Jason Les, CEO of Riot, explained that the company's operations in Texas faced heightened demand due to the summer heat, which significantly impacted the ERCOT grid. To manage costs, Riot optimized its energy usage and generated power credits, achieving an all-in power cost of $20 per megawatt-hour (MWh) at its Rockdale facility. At its Corsicana facility, which purchases energy at the spot price, the all-in power cost was $39/MWh.
Riot’s average operating hashrate in August was 14.5 exahashes per second (EH/s), marking a 7% decrease from July but a substantial 224% increase from August 2023. This increased computational power is essential for maintaining network security. Riot also plans to enhance its hashrate with newly acquired facilities in Kentucky, aiming for a third-quarter hashrate of 28 EH/s and a year-end target of 36 EH/s.
The company is advancing Phase 1 (400 MW) of its Corsicana Facility, with plans to expand to a total capacity of 1 gigawatt (1,000 MW). Additionally, Riot, as the largest shareholder in Bitfarms, is advocating for changes to Bitfarms' board of directors. The upcoming shareholders’ meeting on October 29 will address these proposed governance reforms, amidst ongoing discussions regarding Bitfarms’ acquisition of Stronghold Digital Mining.
