Riot Blockchain, Inc. (RIOT) Bundle
A Brief History of Riot Platforms, Inc.
Company Overview
Riot Platforms, Inc., a leading Bitcoin mining company, primarily focuses on cryptocurrency mining and the development of blockchain technology. As of September 30, 2024, the company reported a total revenue of $234.1 million for the nine months ended, compared to $201.9 million in 2023. This growth is attributed mainly to the increase in Bitcoin mining revenue, which totaled $194.7 million, up from $129.0 million in the previous year.
Financial Performance
For the three months ended September 30, 2024, Riot Platforms generated total revenue of $84.8 million, with Bitcoin mining revenue of $67.5 million, a significant increase from $31.2 million in the same period of 2023. The average Bitcoin price during this period was $61,133 compared to $28,228 in 2023.
Mining Operations
As of September 30, 2024, Riot Platforms had a total deployed hash rate of approximately 28.2 EH/s, significantly up from 10.9 EH/s in the previous year. The company operates multiple facilities, including the Rockdale, Corsicana, and Kentucky facilities, with a developed power capacity of 1,060 MW.
Bitcoin Holdings
At the beginning of 2024, Riot Platforms had 7,362 Bitcoins valued at approximately $311.2 million. By September 30, 2024, the company's Bitcoin holdings increased to 10,427 Bitcoins, with a carrying value of $390.5 million.
Recent Developments
In April 2024, Riot commenced operations at its Corsicana Facility, which includes a 400 MW substation and infrastructure to support Bitcoin mining. The company has also made significant investments in expanding its mining operations, with total commitments to purchase miners amounting to approximately $448.5 million, with $112.5 million remaining due.
Cost Structure
The cost of revenue for Bitcoin mining for the nine months ended September 30, 2024, was $123.3 million, up from $70.0 million in 2023. This increase is largely due to higher power costs, which reached $96.3 million during the same period.
Power Strategy
Riot Platforms' power strategy relies on long-term power purchase agreements (PPAs) and participation in ancillary services programs. Power curtailment credits for the nine months ended September 30, 2024, were $31.4 million, down from $66.1 million in 2023.
Stock Performance
As of September 30, 2024, the total stockholders' equity of Riot Platforms was approximately $2.75 billion, with 324.3 million shares outstanding. The company's stock has shown resilience amidst market fluctuations, reflecting investor confidence in its long-term growth strategy.
| Metric | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Total Revenue | $234.1 million | $201.9 million |
| Bitcoin Mining Revenue | $194.7 million | $129.0 million |
| Total Bitcoin Mined | 3,312 BTC | 4,996 BTC |
| Average Bitcoin Price | $58,771 | $25,818 |
| Total Cost of Revenue (Mining) | $123.3 million | $70.0 million |
| Power Costs | $96.3 million | $65.5 million |
| Total Bitcoin Holdings | 10,427 BTC | 7,362 BTC |
| Stockholders' Equity | $2.75 billion | $1.89 billion |
Outlook
Riot Platforms is strategically positioned for future growth, leveraging its operational capabilities and expanding its Bitcoin mining capacity. The company aims to increase its holdings further while optimizing its cost structure to enhance profitability in the evolving cryptocurrency landscape.
A Who Owns Riot Blockchain, Inc. (RIOT)
Shareholder Composition
As of October 28, 2024, Riot Blockchain, Inc. has approximately 332,325,535 shares of common stock outstanding. The ownership structure is divided among institutional investors, retail investors, and company insiders.
Major Institutional Shareholders
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| The Vanguard Group, Inc. | 41,200,000 | 12.4% |
| BlackRock, Inc. | 39,500,000 | 11.9% |
| State Street Corporation | 25,600,000 | 7.7% |
| Dimensional Fund Advisors LP | 20,500,000 | 6.2% |
| Invesco Ltd. | 18,300,000 | 5.5% |
Executive and Insider Ownership
As of the latest filings, the executive team and board members hold a significant portion of the company's equity. The following table outlines the ownership of key executives:
| Name | Position | Shares Owned |
|---|---|---|
| Jason Les | CEO | 4,500,000 |
| Colin Yee | CFO | 2,000,000 |
| Daniel W. W. Smith | Board Member | 1,200,000 |
| Other Executives | N/A | 3,500,000 |
Recent Acquisitions and Changes in Ownership
On July 23, 2024, Riot Blockchain acquired 100% of Block Mining, Inc. for approximately $113.6 million. This acquisition was structured as follows:
- Cash: $13.5 million
- Common stock: 7.2 million shares valued at approximately $74.0 million
- Contingent purchase price: Estimated fair value of $26.1 million
This acquisition increased Riot's operational capacity and geographic footprint in the Bitcoin mining sector.
Stock Performance and Market Trends
As of September 30, 2024, Riot Blockchain's stock price was approximately $12.31. The company's market capitalization has been influenced by the rising price of Bitcoin, which saw significant increases due to the approval of Bitcoin spot ETFs in January 2024, attracting approximately $18.5 billion in net inflows through September 2024.
Conclusion on Ownership Landscape
The ownership landscape of Riot Blockchain, Inc. is characterized by a mix of institutional and insider holdings, with significant recent acquisitions aimed at enhancing operational capacity. The stock's performance is closely tied to Bitcoin market trends, which continue to evolve in response to regulatory developments and market demand.
Riot Blockchain, Inc. (RIOT) Mission Statement
Overview
Riot Blockchain, Inc. is a vertically-integrated Bitcoin mining company committed to enhancing its capabilities in Bitcoin mining to support the Bitcoin blockchain. The company operates significant mining facilities located in Rockdale, Texas, and is in the process of developing a second large-scale mining facility in Corsicana, Texas, which is expected to exceed the mining capacity of the Rockdale facility upon completion.
Mission Statement
Riot Blockchain aims to be a leader in the Bitcoin mining industry by leveraging innovative technologies and sustainable practices to maximize the efficiency of its mining operations while contributing to the overall growth of the Bitcoin ecosystem.
Financial Performance and Key Metrics
As of September 30, 2024, Riot Blockchain reported significant financial metrics indicative of its operational performance:
| Metric | Value |
|---|---|
| Total Revenue (Q3 2024) | $84.8 million |
| Total Revenue (YTD 2024) | $234.1 million |
| Bitcoin Mining Revenue (Q3 2024) | $67.5 million |
| Bitcoin Mining Revenue (YTD 2024) | $194.7 million |
| Engineering Revenue (YTD 2024) | $26.9 million |
| Net Income (Loss) (Q3 2024) | $(154.4) million |
| Net Income (Loss) (YTD 2024) | $(27.0) million |
| Cost of Revenue for Bitcoin Mining (YTD 2024) | $123.3 million |
| Carrying Value of Bitcoin (as of September 30, 2024) | $390.5 million |
| Total Bitcoin Mined (YTD 2024) | 3,312 BTC |
| Bitcoin Price Average (YTD 2024) | $58,771 |
Operational Highlights
Riot Blockchain has made significant investments to enhance its mining capabilities:
- Acquisition of Block Mining, Inc. for approximately $113.6 million in July 2024.
- Expansion plans for the Corsicana Facility to achieve a total capacity of 1.0 gigawatt (GW).
- Successful procurement of miners from MicroBT with a total hash rate of 25.6 Exahash per second (EH/s) for approximately $453.4 million, expected to be delivered by the end of 2024.
Market Trends and Strategic Initiatives
The Bitcoin mining industry has experienced substantial growth, influenced by the approval of Bitcoin spot ETFs, which attracted approximately $18.5 billion in net inflows through September 30, 2024. This increase in demand is expected to drive further expansion and investment within the sector.
Riot Blockchain is strategically positioned to capitalize on market trends and is focused on efficient capital allocation to maximize returns on investment in its mining operations.
Future Outlook
Riot Blockchain continues to monitor developments in the cryptocurrency sector and is poised to adapt its strategies to leverage emerging opportunities in the Bitcoin mining landscape.
How Riot Blockchain, Inc. (RIOT) Works
Company Overview
Riot Blockchain, Inc. operates as a vertically-integrated Bitcoin mining company. The company primarily focuses on enhancing its capabilities to mine Bitcoin to support the Bitcoin blockchain. Riot has established a large-scale Bitcoin mining facility in Rockdale, Texas, and is currently developing a second facility in Corsicana, Texas, expected to exceed the capacity of the Rockdale Facility.
Financial Performance
As of September 30, 2024, Riot Blockchain reported the following financial highlights:
| Financial Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenue | $84.8 million | $51.9 million | +63.5% |
| Net Income (Loss) | $(154.4) million | $(80.0) million | -93.0% |
| Bitcoin Revenue | $67.5 million | $31.2 million | +116.2% |
| Engineering Revenue | $12.6 million | $15.5 million | -18.6% |
| Other Revenue | $4.7 million | $5.1 million | -7.8% |
Bitcoin Mining Operations
Riot's mining operations are a significant component of its revenue. As of September 30, 2024, Riot held 10,427 Bitcoins with a carrying value of approximately $660.4 million. The company recognized revenue from Bitcoin mined amounting to $194.7 million for the nine months ended September 30, 2024.
Bitcoin Holdings Summary
The following table summarizes Riot's Bitcoin holdings and associated monetary values:
| Holding Metric | Quantity | Value (USD) |
|---|---|---|
| Balance as of January 1, 2024 | 7,362 BTC | $311,178,000 |
| Bitcoin Mined (YTD 2024) | 3,312 BTC | $194,651,000 |
| Bitcoin Sold | (212 BTC) | $(9,518,000) |
| Change in Fair Value | N/A | $166,231,000 |
| Balance as of September 30, 2024 | 10,427 BTC | $660,350,000 |
Recent Acquisitions and Expansion
In July 2024, Riot completed a significant acquisition of Block Mining, enhancing its operational capacity with two mining sites in Kentucky, which currently possess 60 MW of operational capacity and potential expansion to 155 MW. The acquisition was valued at approximately $113.6 million, with $73.999 million allocated in common stock and the remainder in cash and other considerations.
Cash Flow and Liquidity
The company's cash flow from operating activities for the nine months ended September 30, 2024, was $(156.7) million, indicating a substantial outflow driven by operational costs and investments. Riot ended the period with cash and cash equivalents totaling $428.4 million.
| Cash Flow Summary | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Cash Provided by (Used in) Operating Activities | $(156.7) million | $(12.0) million |
| Net Cash Provided by (Used in) Investing Activities | $(726.2) million | $(232.4) million |
| Net Cash Provided by (Used in) Financing Activities | $714.1 million | $304.1 million |
Market Position and Industry Trends
Riot Blockchain has positioned itself as a leader in the Bitcoin mining sector, particularly following the approval of Bitcoin spot ETFs in January 2024, which sparked renewed interest and investment in Bitcoin. The company's strategy includes expanding its mining capacity and enhancing operational efficiencies to capitalize on rising Bitcoin prices and increased transaction fees within the network.
Stock Performance
As of September 30, 2024, Riot's common stock price was approximately $12.31. The company has experienced fluctuations in stock value, reflecting broader market trends in cryptocurrency and investor sentiment.
Conclusion of Financial Position
Riot Blockchain, Inc. continues to expand its operations and enhance its financial metrics, driven by strategic acquisitions and a focus on Bitcoin mining efficiency. The company's growth trajectory is supported by favorable market conditions and ongoing investments in infrastructure.
How Riot Blockchain, Inc. (RIOT) Makes Money
Bitcoin Mining Operations
Riot Blockchain primarily generates revenue through its Bitcoin mining activities. For the nine months ended September 30, 2024, the company's Bitcoin mining revenue was approximately $194.7 million, compared to $129.0 million for the same period in 2023. The increase in revenue is attributed to higher Bitcoin prices, which averaged $58,771 per coin in 2024, a substantial rise from $25,818 per coin in 2023.
Revenue Breakdown
Riot Blockchain's total revenue for the three months ended September 30, 2024, was $84.8 million, up from $51.9 million in the previous year. The breakdown of revenue for the same period is as follows:
| Revenue Source | Q3 2024 ($ million) | Q3 2023 ($ million) |
|---|---|---|
| Bitcoin Mining | 67.5 | 31.2 |
| Engineering | 12.6 | 15.5 |
| Other | 4.7 | 5.1 |
| Total Revenue | 84.8 | 51.9 |
Bitcoin Production and Sales
As of September 30, 2024, Riot Blockchain had a total of 10,427 BTC valued at approximately $660.3 million. The company recognized revenue of $67.5 million from Bitcoin mined during the third quarter of 2024, with proceeds from the sale of Bitcoin amounting to $9.5 million.
Cost of Revenue
The cost of revenue for Bitcoin mining for the nine months ended September 30, 2024, was $123.3 million, up from $70.0 million in 2023. The breakdown of costs for the same period is as follows:
| Cost Component | 9M 2024 ($ million) | 9M 2023 ($ million) |
|---|---|---|
| Power | 96.3 | 65.5 |
| Compensation | 9.3 | 0.0 |
| Insurance on miners | 5.2 | 2.9 |
| Ground rent and property tax | 4.2 | 0.0 |
| Other | 8.3 | 1.6 |
| Total Cost of Revenue | 123.3 | 70.0 |
Engineering Revenue
Riot Blockchain also generates revenue from its Engineering segment, which focuses on custom-engineered electrical products. For the nine months ended September 30, 2024, Engineering revenue was $26.9 million, down from $51.0 million in 2023. This decline was primarily due to supply chain constraints impacting the delivery of materials.
Financial Performance
For the three months ended September 30, 2024, Riot Blockchain reported a net loss of $154.4 million, compared to a loss of $80.0 million in the same quarter of 2023. The net loss for the nine months ended September 30, 2024, was $27.0 million, down from $88.9 million in 2023.
Investments
During the nine months ended September 30, 2024, Riot Blockchain invested approximately $203.8 million in acquiring shares of Bitfarms. Additionally, the company has ongoing commitments to purchase miners, with total deposits and payments reaching $448.5 million.
Market Conditions
The Bitcoin mining industry has seen significant growth due to rising Bitcoin prices and increased demand. The average Bitcoin price increased notably during the first quarter of 2024, leading to enhanced revenue opportunities for miners.
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Resources:
- Riot Blockchain, Inc. (RIOT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Riot Blockchain, Inc. (RIOT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Riot Blockchain, Inc. (RIOT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.