RIOT ANNOUNCES JUNE 2024 PRODUCTION AND OPERATIONS UPDATES
Riot has announced a significant milestone in its Bitcoin mining operations for June 2024, achieving a deployed hash rate of 22.0 EH/s, exceeding its Q2 target. The company produced 255 Bitcoins, a 19% increase from May 2024 but a 45% decrease year-over-year. Riot held 9,334 Bitcoins as of June's end, a 3% month-over-month and 29% year-over-year increase. The company also reported $6.2 million in power credits, reducing power costs to 2.6c/kWh across its facilities.
Riot's Corsicana Facility achieved new operational milestones, with Phase 1 expected to total 400 MW of mining capacity. The company plans to reach a total self-mining hash rate capacity of 31 EH/s by the end of 2024 and 41 EH/s by 2025.
Riot's power strategy, involving participation in ERCOT's Four Coincident Peak Program, has contributed to substantial future savings on transmission costs. Additionally, Riot's infrastructure development includes ongoing work on new buildings and the deployment of new miners under their long-term agreement with MicroBT.
- Achieved 22.0 EH/s deployed hash rate, exceeding Q2 2024 target.
- Produced 255 Bitcoin in June 2024, a 19% increase from May 2024.
- Held 9,334 Bitcoins as of June's end, a 29% year-over-year increase.
- $6.2 million in power credits, reducing power costs to 2.6c/kWh.
- Phase 1 of Corsicana Facility expected to total 400 MW of mining capacity.
- Total self-mining hash rate capacity projected to reach 31 EH/s by end of 2024 and 41 EH/s by 2025.
- Bitcoin production was down 45% year-over-year.
- Total power credits decreased by 15% month-over-month and 38% year-over-year.
- All-in power costs increased by 34% month-over-month and 158% year-over-year.
Insights
Riot Platforms' recent update showcases a substantial increase in their deployed hash rate, reaching 22.0 EH/s, which exceeds their Q2 2024 target. This notable growth, particularly a 50% increase from the previous month and 106% year-over-year, indicates strong operational execution and scalability. However, it's important to consider the 45% year-over-year decline in Bitcoin production despite the increased hash rate. This discrepancy may be due to the halving event in the Bitcoin protocol, leading to fewer rewards for the same mining effort.
Another critical factor is Riot's power strategy, which has resulted in power costs as low as 2.6c/kWh. This positions Riot favorably in the highly competitive Bitcoin mining industry, where power cost is a significant expense. The power credits earned demonstrate Riot's strategic advantage in managing power consumption, which can offset operational costs and enhance profitability.
For retail investors, the key takeaway is Riot's ability to scale efficiently while maintaining competitive operational costs. However, the decline in Bitcoin production and the reliance on power credits should be monitored as these factors introduce potential volatility in earnings.
Riot Platforms' deployment of the latest generation MicroBT miners is pivotal in achieving their operational targets. These miners likely offer higher efficiency and performance compared to older models. The immersion cooling technology used in the Corsicana Facility further enhances this efficiency, reducing thermal throttling and extending hardware life. The anticipated hash rate growth to 31 EH/s by the end of 2024 and 41 EH/s by 2025 underscores Riot's commitment to maintaining technological leadership in the Bitcoin mining space.
Retail investors should recognize that these technological advancements provide Riot with a competitive edge. Efficient hardware and innovative cooling methods translate to higher productivity and lower maintenance costs, important for sustaining profitability amid fluctuating Bitcoin prices.
Riot Platforms' strategic power management and infrastructure development are key differentiators in the Bitcoin mining sector. The 400 MW initial phase of the Corsicana Facility, with plans to expand to 1 gigawatt, indicates significant capacity for future growth. This level of infrastructure investment suggests confidence in long-term Bitcoin mining profitability and a robust operational strategy. Additionally, Riot's participation in programs like ERCOT's 4CP highlights their proactive approach to cost management and grid stability.
For retail investors, the infrastructure growth and strategic power management signify Riot's potential for sustained operational efficiency and scalability. These factors can lead to higher margins and long-term value creation, though they should be balanced against the inherent volatility of the cryptocurrency market.
Riot Reaches 22.0 EH/s in Deployed Hash Rate, Exceeding Q2 2024 Target, and Produces 255 Bitcoin in June 2024
Riot Exceeds Q2 2024 Target, Reaches 22.0 EH/s in Deployed Hash Rate – Watch Here.
Bitcoin Production and Operations Updates for June 2024
Comparison (%) | |||||||
Metric | June 2024 1 | May 2024 1 | June 2023 | Month/Month | Year/Year | ||
Bitcoin Produced | 255 | 215 | 460 | 19 % | -45 % | ||
Average Bitcoin Produced per Day | 8.5 | 6.9 | 15.3 | 23 % | -45 % | ||
Bitcoin Held 2 | 9,334 | 9,084 | 7,250 | 3 % | 29 % | ||
Bitcoin Sold | - | - | 400 | N/A | N/A | ||
Bitcoin Sales - Net Proceeds | - | - | N/A | N/A | |||
Average Net Price per Bitcoin Sold | N/A | N/A | N/A | N/A | |||
Deployed Hash Rate - | 14.7 EH/s | 11.5 EH/s | 10.7 EH/s | 27 % | 37 % | ||
Deployed Hash Rate - | 7.3 EH/s | 3.1 EH/s | - | 133 % | N/A | ||
Deployed Hash Rate - Total 2 | 22.0 EH/s | 14.7 EH/s | 10.7 EH/s | 50 % | 106 % | ||
Avg. Operating Hash Rate - | 7.7 EH/s | 7.4 EH/s | 6.0 EH/s | 5 % | 29 % | ||
Avg. Operating Hash Rate - | 3.6 EH/s | 1.4 EH/s | - | 167 % | N/A | ||
Avg. Operating Hash Rate - Total 3 | 11.4 EH/s | 8.8 EH/s | 6.0 EH/s | 30 % | 90 % | ||
Power Credits 4 | 35 % | -32 % | |||||
Demand Response Credits 5 | -85 % | -72 % | |||||
Total Power Credits | -15 % | -38 % | |||||
All-in power cost - | 2.4c/kWh | 1.8c/kWh | 1.0c/kWh | 32 % | 134 % | ||
All-in power cost - | 3.9c/kWh | 3.4c/kWh | N/A | 10 % | N/A | ||
All-in power cost - Total 6 | 2.6c/kWh | 1.9c/kWh | 1.0c/kWh | 34 % | 158 % | ||
- Unaudited, estimated.
- As of month-end.
- Average over the month.
- Estimated power curtailment credits.
- Estimated credits received from participation in ERCOT demand response programs.
- Estimated. Inclusive of all transmission and distribution charges, fees, adders, and taxes. Net of Total Power Credits.
"June was a historic month for Riot, during which we added an additional 7.3 EH/s to our hash rate capacity in Buildings A1 and A2 at our Corsicana Facility and by utilizing additional available capacity at our Rockdale Facility, bringing total capacity to 22.0 EH/s," said Jason Les, CEO of Riot. "This unprecedented achievement is a reflection of the incredible team and expertise at Riot, and I'm extremely proud to announce that this rapid deployment means that Riot has exceeded our previously announced hash rate goal for Q2 2024 of 21.4 EH/s. All miners deployed were latest generation MicroBT miners and the final energization of these miners primarily took place in the last several days of the month, positioning us for greater efficiency and productivity in the months ahead.
"Starting this month, we will also begin providing greater visibility on the results of our unique power strategy by reporting our monthly cost of power, by facility, net of power credits. This past June showcased our power strategy in action, as Riot earned
Riot's Power Strategy Overview
Riot's power strategy is based on being a flexible consumer of power. The Company typically consumes power when it is low-cost and abundant, as opposed to residential consumers, who typically increase power usage during peak periods of demand. When prices are high or when the grid operator needs to balance demand, the Company can either power down to reduce power costs, or bid competitively to provide the grid operator with visibility into, and control over, Riot's power utilization. This control gives the grid operator the ability to either absorb excess power when supply is high or curtail Riot's operations to reduce demand when beneficial to the grid, and ultimately, to all consumers.
During the month of June, Riot continued its participation in ERCOT's Four Coincident Peak Program ("4CP"). The 4CP program is an opportunity for users of power to curtail their usage during periods of highest demand on the grid in each of the four summer months of the year. Riot curtailed operations in June during peak periods of demand within ERCOT and will continue to do so throughout the summer. These periods of curtailment as part of the 4CP program occur whenever total demand on the grid could reach its peak point for each month and does not depend on the current price for power, which fluctuates due to a variety of factors and may be lower or higher than anticipated. As part of Riot's participation in this voluntary program the Company will have substantial savings on future transmission costs and is part of the Company's partnership-driven approach with the grid.
Infrastructure Update
Riot is currently developing Phase 1 of the Company's second large-scale facility, the Corsicana Facility, which is expected to total 400 megawatts ("MW") of developed mining capacity upon completion of this initial phase. Once fully developed, the Corsicana Facility is expected to total 1 gigawatt (1,000 MWs) in total developed mining capacity.
In June, the remaining tanks and miners in Building A1 were energized, resulting in completion of the first 100 MW building in
Development for the third building at
Estimated Hash Rate Growth
Riot anticipates achieving a total self-mining hash rate capacity of 31 EH/s by the end of 2024.
As previously disclosed, in June 2023, Riot entered into a long-term master purchase agreement with MicroBT, which included an initial order of 33,280 immersion miners for the Corsicana Facility. Effective December 1, 2023, Riot executed a second order under the MicroBT master agreement for an additional 66,560 immersion miners, primarily for the Corsicana Facility. In February 2024, Riot entered into a third order with MicroBT, for 31,500 air-cooled miners for the Rockdale Facility. Approximately 17,000 miners in the third order are expected to replace underperforming machines currently operating in the facility, and the deployment of the remaining 14,500 miners will contribute additional hash rate capacity to our self-mining operations at the Rockdale Facility.
Collectively, the three purchase orders will add an anticipated 28 EH/s to Riot's self-mining capacity. Deployment of the miners intended for the Corsicana Facility has begun and is estimated to be completed by the second half of 2025. Deployment of the miners intended for the Rockdale Facility has begun and is expected to be completed in Q3 2024.
Upon full deployment in 2025, Riot anticipates a total self-mining hash rate capacity of 41 EH/s.
Conference Schedule:
- Bitcoin
Nashville 2024 held inNashville, TN on July 25th – 27th.
Human Resources Update
Riot is currently recruiting for positions across the Company. Join our team in building, expanding, and securing the Bitcoin network.
Open positions are available at: https://www.riotplatforms.com/careers.
About Riot Platforms, Inc.
Riot's (NASDAQ: RIOT) vision is to be the world's leading Bitcoin-driven infrastructure platform. Our mission is to positively impact the sectors, networks, and communities that we touch. We believe that the combination of an innovative spirit and strong community partnership allows the Company to achieve best-in-class execution and create successful outcomes.
Riot is a Bitcoin mining and digital infrastructure company focused on a vertically integrated strategy. The Company has Bitcoin mining operations in central
For more information, visit www.riotplatforms.com.
Safe Harbor
Statements in this press release that are not historical facts are forward-looking statements that reflect management's current expectations, assumptions, and estimates of future performance and economic conditions. Such statements rely on the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Words such as "anticipates," "believes," "plans," "expects," "intends," "will," "potential," "hope," and similar expressions are intended to identify forward-looking statements. These forward-looking statements may include, but are not limited to, statements about the benefits of acquisitions, including financial and operating results, and the Company's plans, objectives, expectations, and intentions. Among the risks and uncertainties that could cause actual results to differ from those expressed in forward-looking statements include, but are not limited to: unaudited estimates of Bitcoin production; our future hash rate growth (EH/s); the anticipated benefits, construction schedule, and costs associated with the
Investor Contact:
Phil McPherson
303-794-2000 ext. 110
IR@Riot.Inc
Media Contact:
Alexis Brock
303-794-2000 ext. 118
PR@Riot.Inc
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SOURCE Riot Platforms, Inc.
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