Riot Platforms, a firm that mines Bitcoin (BTC), has recently published a report on its business’s financial and operational success for the entire year 2022.
But at the same time, tripling its hashrate capability, the company brought in a total of $259.2 million in revenue for the fiscal year that concluded in December 2022.
Riot noted that its full-year income haul was the consequence of increased Bitcoin production, which contributed to the company’s success.
According to the company’s statement, a year’s worth of hosting and development revenue contributed to the company’s end-of-year profits. A record hashrate capacity of 9.7 EH/s was recorded by Riot in the previous year. This is a 46% increase from the previous year’s production of 5,554 Bitcoin.
Riot’s unconventional power approach yielded significant benefits for the company in the prior year, including the generation of more than $27 million in power credits.
The Bitcoin miner was able to reach this level of advancement by voluntarily cutting back on their energy consumption following large-scale, low-cost, and long-term fixed-rate power contracts.
Riot said (1) that it was able to reduce its 2022 production costs, on the premise that it was not compliant with GAAP, to levels that were among the lowest in the industry.
In 2022, Riot saw a decrease in its Bitcoin mining revenue due to the value of the dominant cryptocurrency falling. Bitcoin’s price climbed beyond $65,000 in November 2021, yet it fell below $20,000 at some time in the previous year.
Riot maintained its excellent financial position throughout 2022, finishing the year with around $230 million in cash reserves, despite the adverse market conditions, particularly in the second half of 2022.
In addition, Riot concluded the year 2022 free of any long-term debt and in possession of 6,974 BTC with a value of around $116 million.
The worth of cryptocurrencies was determined on a non-GAAP basis using Bitcoin prices as of the end of the year.
CEO Speak:
In 2022, the CEO of the firm, Jason Les, made the following statement in reference to Riot’s successful expansion as well as strides in other current capital projects at its Rockdale Facility:
“2017 was a phenomenal year of growth for Riot, as we more than quadrupled our hash rate capacity, contributing to several monthly output records, and closed the year at an all-time high of 9.7 EH/s in hash rate capacity,” said the CEO of Riot.
The CEO of Riot stated that the company’s hashrate production was a reflection of the hard effort that its best-in-class staff had put in during the year 2022.
In addition to this, Les also discussed the continuing capital efforts that Riot is working on, saying:
When the fourth new structure at our Rockdale Facility is finished in the first quarter of 2023, the expansion of our Rockdale Facility will be complete. In 2022, we finished construction on three buildings at our Rockdale Facility.
Corsicana Facility, where we broke ground in the middle of 2022, is on schedule for energization in the 4th quarter of 2023.
Meanwhile, our further growth plans continue to move, with construction at our Corsicana Facility, wherein we began work in the middle of 2022.
Les stated that the company is still in an excellent position to fulfill aggressive development ambitions after the thrilling Riot 2022 report. He indicated that Riot might continue to develop beyond this year and take up where it left off in 2023 from where it had been the previous year.
Riot discounted its previous financial statements for the years 2020 and 2021 and submitted this information to the SEC in a separate filing.
A change in accounting policy brought about by Bitcoin necessitated that the Bitcoin mining platform disregard such financial statements.
Riot further disclosed (2) that it would make the modified impacted financials public in a filing for Form 10-K in the year 2022.