Bitcoin miner Riot Blockchain performs less than expected

Last Updated: 9 November 2022

Bitcoin miner Riot Blockchain performed less than analysts expected in the third quarter.

The miner managed to generate $46.3 million in revenue from July to September 2022. While analysts had assumed $56.3 million in revenue. According to FactSet, RIOT’s net loss per share came to 0.24 US cents.

In the second quarter, revenue was still $72.9 million, and in the third quarter of 2021, revenue was also much higher at $64.8 million.

Shutting down operations

One explanation is that the mining company had to temporarily shut down operations in Texas due to an overloaded power grid. Also, logically, the lower bitcoin exchange rate is a reason for the disappointing results.

What does the company have left in bitcoin on its company balance sheet? Riot Blockchain still has $255 million in cash and 6,766 bitcoin at the end of quarter three. In the previous quarter, this was $270.5 million and 6,653 bitcoin respectively.

Riot is one of the companies hit by the temporary shutdown of operations in the US state of Texas. Machinery had to go out because the regional power grid became overloaded.

Bitcoin production in the month of July fell by 28% because Riot also participated in the programme to balance the grid by sometimes shutting down machines when there was too much regional demand for electricity.

So Riot cannot escape the malaise affecting several mining companies. Iris Energy, for instance, is also in financial trouble.

  • Ivan Brightly

    Ivan Brightly is a leading cryptocurrency analyst and author with over 5 years of experience in the blockchain and digital asset space. He previously served as a senior analyst at a major cryptocurrency hedge fund where he led quantitative research and trading strategy development.

    Ivan holds a Master's degree in Finance from the London School of Economics and a Bachelor's in Computer Science from Stanford University. He is frequently invited to speak at fintech and blockchain conferences worldwide on topics spanning cryptocurrency trading, blockchain technology, and the future of digital assets.

    Ivan's commentary has been featured in several major finance and technology publications including Forbes, Bloomberg, and CoinDesk. He is considered one of the most insightful voices analyzing new developments in the cryptocurrency and blockchain industry.

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