Bitcoin mining is up by a significant chunk this year as the blockchain network recorded a new all-time high in hash rate in the second quarter of the year. Mining revenues have also increased as Bitcoin recorded a spike in transaction volume.
As a result, Riot Blockchain, one of the largest publicly traded Bitcoin mining companies in the US, recorded an increase in activity in the second quarter. According to its Q2 2023 financial results, the mining company recorded a new record hash as it ramped up its Bitcoin mining operations.
Solid second quarter 2023
According to his finacial report, Riot has seriously ramped up its Bitcoin mining business. As a result, the mining company produced 1,775 BTC in the second quarter of 2023, a 27% increase compared to the 1,395 BTC it produced in the same period in 2022.
In May 2023 alone, the company produced 676 BTC at an average of 21.8 BTC per day. The average cost to mine each bitcoin was $8,389, surpassing the Q2 2022 average of $11,316.
Riot also witnessed an increase in mining revenue as Bitcoin miners generated a remarkable total revenue of $2.4 billion. While Bitcoin’s price was 15% lower during the quarter than it was in Q2 2022, Riot saw total revenue of $76.7 million, compared to $72.9 million in Q2 2022. Mining revenue ($49.7 million ), tech revenue ($19.3 million), data hosting revenue ($7.7 million), and power throttling credits ($13.5 million) were also higher than Q2 2022.
Not only has RIOT’s income from bitcoin mining increased, but their actual bitcoin holdings have also grown significantly. As of June 30, Riot held 7,264 BTC with each BTC priced at $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 also cutting its net loss to $27.7 million compared to $353. 6 million in Q2 2022.
BTC price remains volatile | Source: BTCUSD on Tradingview.com
Increase in Bitcoin mining power
Riot Blockchain also dramatically increased its hash rate during the quarter, reaching an all-time record capacity of 10.7 EH/s. However, the company is also looking for ways to increase its computing power.
During the quarter, the company signed a long-term purchase agreement with MicroBT to take over 33,280 next generation miners. With an expanded mining fleet and facility, Riot believes it can see its hash rate grow to 20.1 EH/s in the second quarter of 2024.
Bitcoin mining is an energy intensive process. However, Riot’s energy strategy contributes to the stability of the Texas energy grid during times of high demand by selling additional power back to the grid. At the time of writing, Riot’s stock is up 1.53% in a daily time frame and 158.14% over the past six months.
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