Riot Platforms Reports Decline in Bitcoin Production, Expands Hash Rate
As a leading player in the Bitcoin mining industry, Riot Platforms, Inc. (NASDAQ: RIOT) recently announced a significant decrease in its Bitcoin production for May 2024. The company reported that only 215 BTC were mined, marking a 43% drop from April 2024 and a 68% decrease compared to May 2023. This decline can be attributed to the recent Bitcoin halving in April 2024, which reduced block rewards.
Hash Rate Expansion
Despite the decrease in Bitcoin production, Riot has been focusing on expanding its hash rate. By the end of May, the company’s total deployed hash rate rose to 14.7 EH/s, up from 12.6 EH/s in April. The Corsicana Facility played a significant role in this increase, contributing 3.1 EH/s to Riot’s mining capabilities. Jason Les, CEO of Riot, expressed optimism about the progress at the Corsicana Facility, mentioning that the first 100 MW building, Building A1, is fully developed and miner deployment is nearing completion.
Operational Challenges and Solutions
Riot encountered operational challenges at its Rockdale Facility, including the need to deinstall problematic miner models and deploy new MicroBT M60S miners. As a result, there was a temporary 850 PH/s reduction in the facility’s hash rate for May. However, the company expects to accelerate the deployment of new miners in June. Additionally, a temporary operational pause at the Corsicana Facility due to a lightning strike was quickly resolved, with mining activities resuming without significant long-term impact.
Power and Demand Response Credits
Riot’s unique power strategy has proven to be advantageous, generating approximately $7.3 million in power and demand response credits in May. This strategy, particularly effective during the summer months, continues to help reduce mining costs and maintain competitive advantage.
Infrastructure Developments
Riot is making progress in developing its second large-scale facility, the Corsicana Facility, with Phase 1 set to offer 400 MW of mining capacity and the potential to reach 1 gigawatt upon completion. In May, deployment of immersion tanks in Building A1 was completed, and miner energization is nearly finished. Construction of Building A2 has concluded, with miner deployment underway, while work on Building B1 is on schedule, expected to begin immersion tank installation in June.
Future Hash Rate Projections
Riot aims to achieve a total self-mining hash rate capacity of 31 EH/s by the end of 2024. Through purchase agreements with MicroBT, including orders for 33,280 immersion miners for the Corsicana Facility and additional orders totaling 131,340 miners, Riot expects to add 28 EH/s to its mining capacity. Full deployment of these miners is anticipated by the second half of 2025, projecting a total self-mining hash rate capacity of 41 EH/s upon completion.
Leadership and Recruitment
In a significant leadership update, Riot appointed Stephen Howell, CEO of ESS Metron, as the Chief Operating Officer. Howell will continue to oversee ESS Metron, Riot’s subsidiary specializing in electrical engineering and manufacturing. Additionally, Riot is actively recruiting for various positions to support its expansion and operational needs.
For more latest news and updates on cryptocurrency, blockchain, and investment opportunities, stay tuned to Extreme Investor Network.