Riot Announces September 2024 Production and Operations Updates

Rhea-AI Summary

Riot Platforms, Inc. (NASDAQ: RIOT) announced its unaudited production and operations updates for September 2024. Key highlights include:

• 412 Bitcoin produced, a 28% increase from August
• Total deployed hash rate reached 28.2 EH/s, a 20% increase month-over-month
• Average operating hash rate increased to 19.5 EH/s, up 35% from August
• Bitcoin held increased to 10,427, up 4% from August
• Completion of Building B1 at Corsicana Facility, bringing power capacity to 300 MW

CEO Jason Les attributed the production increase to higher average operating hash rate and operational improvements. The company continues to progress on Building B2 at Corsicana, expected to be operational in November. Riot's power strategy focuses on flexible consumption, participating in grid demand response programs.

Positive

• Bitcoin production increased 28% month-over-month to 412
• Total deployed hash rate grew 20% to 28.2 EH/s
• Average operating hash rate rose 35% to 19.5 EH/s
• Bitcoin holdings increased 4% to 10,427
• Completed Building B1 at Corsicana Facility, adding 100 MW capacity

Negative

• Power credits decreased 66% month-over-month to $2.2 million
• All-in power cost increased 35% to 3.5c/kWh

Insights

Financial Analyst

Riot Platforms' September 2024 production update reveals significant operational improvements and growth. The company produced 412 Bitcoin, a 28% increase from August, driven by higher average operating hash rates across all facilities. The total deployed hash rate reached 28.2 EH/s, a 20% month-over-month increase and a 159% year-over-year jump.

Key financial implications include:

• Increased Bitcoin holdings to 10,427, up 4% from August and 42% year-over-year, strengthening the company's balance sheet.
• Power costs rose to 3.5c/kWh, up from 2.6c/kWh in August, potentially impacting profitability.
• Power credits decreased to $2.2 million, down 66% from August, which could affect overall operational costs.

The completion of the third 100 MW building at the Corsicana Facility marks a significant expansion, with the fourth building expected to be operational in November. This growth trajectory positions Riot well for increased production capacity and potential revenue growth in the coming months.

Energy Market Analyst

Riot's power strategy as a flexible consumer is notable in the current energy landscape. Their participation in ERCOT's Four Coincident Peak (4CP) program demonstrates a sophisticated approach to power management, potentially leading to substantial future cost savings. This strategy allows Riot to:

• Consume power when it's abundant and low-cost
• Curtail operations during peak demand periods
• Contribute to grid stability
• Potentially benefit from demand response credits

However, the 66% decrease in power credits to $2.2 million and the increase in all-in power costs to 3.5c/kWh warrant attention. These changes could impact profitability in the short term but may be offset by increased production efficiency and hash rate growth. The company's expansion in Corsicana and its ability to adapt to energy market dynamics will be important for maintaining competitive operating costs in the long run.

Riot Produces 412 Bitcoin in September 2024 and Achieves Q3 Hash Rate Target, with 28.2 EH/s Deployed

CASTLE ROCK, Colo., Oct. 3, 2024 /PRNewswire/ -- Riot Platforms, Inc. (NASDAQ: RIOT) ("Riot" or "the Company"), an industry leader in vertically integrated Bitcoin ("BTC") mining, announces unaudited production and operations updates for September 2024.  

Bitcoin Production and Operations Updates for September 2024 

						Comparison (%)
Metric		September 20241	August 20241	September 2023		Month/Month	Year/Year
Bitcoin Produced		412	322	362		28 %	14 %
Average Bitcoin Produced per Day		13.7	10.4	12.1		32 %	14 %
Bitcoin Held 2		10,427	10,019	7,327		4 %	42 %
Bitcoin Sold		-	-	340		N/A	N/A
Bitcoin Sales - Net Proceeds		-	-	$9.0 million		N/A	N/A
Average Net Price per Bitcoin Sold		N/A	N/A	$26,379		N/A	N/A
Deployed Hash Rate - Rockdale 2		15.0 EH/s	14.7 EH/s	10.9 EH/s		2 %	38 %
Deployed Hash Rate - Corsicana 2		11.9 EH/s	7.6 EH/s	-		57 %	N/A
Deployed Hash Rate - Kentucky 2,3		1.3 EH/s	1.2 EH/s	N/A		5 %	N/A
Deployed Hash Rate - Total 2		28.2 EH/s	23.5 EH/s	10.9 EH/s		20 %	159 %
Avg. Operating Hash Rate - Rockdale 4		9.7 EH/s	8.2 EH/s	5.2 EH/s		18 %	88 %
Avg. Operating Hash Rate - Corsicana 4		8.6 EH/s	5.2 EH/s	-		66 %	N/A
Avg. Operating Hash Rate - Kentucky 3,4		1.2 EH/s	1.0 EH/s	N/A		14 %	N/A
Avg. Operating Hash Rate - Total 4		19.5 EH/s	14.5 EH/s	5.2 EH/s		35 %	279 %
Power Credits 5		$1.9 million	$5.7 million	$11.0 million		-67 %	-83 %
Demand Response Credits 6		$0.3 million	$0.7 million	$2.5 million		-56 %	-87 %
Total Power Credits		$2.2 million	$6.4 million	$13.4 million		-66 %	-84 %
All-in Power Cost - Rockdale 7		3.5c/kWh	2.0c/kWh	(0.5)c/kWh		72 %	N/M
All-in Power Cost - Corsicana 7		3.5c/kWh	3.9c/kWh	N/A		-12 %	N/A
All-in Power Cost - Kentucky 7,8		4.0c/kWh	3.7c/kWh	N/A		8 %	N/A
All-in Power Cost - Total 7		3.5c/kWh	2.6c/kWh	(0.5)c/kWh		35 %	N/M

 

1. Unaudited, estimated.
2. As of month-end.
3. Includes self-mining capacity hosted outside of Kentucky.
4. Average over the month.
5. Estimated power curtailment credits.
6. Estimated credits received from participation in ERCOT and MISO demand response programs.
7. Estimated. Inclusive of all transmission and distribution charges, fees, adders, and taxes. Net of Total Power Credits.
8. All-in power cost for Kentucky assets.

"Riot mined 412 Bitcoin in September, a 28% increase over August production," said Jason Les, CEO of Riot. "This increase in production was driven by an increase in average operating hash rate across all our facilities and was achieved despite periodic curtailment that took place through our participation in the final month of ERCOT's Four Coincident Peak (4CP) program for 2024, whereby we paused mining operations during periods of high demand on the grid.

"We are excited about the results we are seeing from our growing hash rate and operational improvements, which are directly translating into increased production and improved efficiency. Following the completion of our third 100 MW building, Building B1, at our Corsicana Facility during the month, we achieved a total deployed hash rate capacity of 28.2 EH/s. Building on this momentum, our teams continue to make rapid progress on the construction and deployment of the fourth 100 MW building at our Corsicana Facility, Building B2, which will deliver further increases in hash rate growth and operational efficiency."

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 demand increases and/or supply decreases, causing prices to rise, 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 to curtail Riot's operations in order to reduce demand when beneficial to the grid, and ultimately, to all consumers.

During September, Riot continued its participation in ERCOT's Four Coincident Peak Program ("4CP"). The 4CP program is an opportunity for users of power to curtail usage during periods of highest demand on the grid in each of the four summer months of the year. Riot curtailed operations in September during peak periods of demand. These periods of curtailment occur whenever total demand on the grid potentially reaches 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 can achieve substantial savings on future costs, and participation is a key part of the Company's partnership-driven approach with the grid and all consumers of power in ERCOT. 

Corsicana Updates

Riot is currently developing Phase 1 (400 MW) of the Company's Corsicana Facility, which, once fully developed, is expected to total 1 gigawatt (1,000 MW) in developed mining capacity.

Riot completed the development of the third 100 MW building, Building B1, in September, bringing power capacity at the Corsicana Facility to 300 MW. Development continues on the final 100 MW building of Phase 1, Building B2, which is expected to be completed and fully operational in November.

During the first two days of October, the Corsicana Facility was powered down for planned maintenance on its substation. This maintenance was completed on October 2^nd, and the facility has now resumed normal operations.

Estimated Hash Rate Growth

Investor Events

• Bitcoin Amsterdam held in Amsterdam on October 9-10^th
• AIM Summit in Dubai on October 21-22^nd

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 Texas and Kentucky, and electrical switchgear engineering and fabrication operations in Denver, Colorado.   

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 development of our mining facilities in Texas, Kentucky and elsewhere; our expected schedule of new miner deliveries; the impact of weather events on our operations and results; our ability to successfully deploy new miners; the variance in our mining pool rewards may negatively impact our results of Bitcoin production; megawatt ("MW") capacity under development; we may not be able to realize the anticipated benefits from immersion cooling; the integration of acquired businesses may not be successful, or such integration may take longer or be more difficult, time-consuming or costly to accomplish than anticipated; failure to otherwise realize anticipated efficiencies and strategic and financial benefits from our acquisitions; and the impact of COVID-19 on us, our customers, or on our suppliers in connection with our estimated timelines. Detailed information regarding the factors identified by the Company's management which they believe may cause actual results to differ materially from those expressed or implied by such forward-looking statements in this press release may be found in the Company's filings with the U.S. Securities and Exchange Commission (the "SEC"), including the risks, uncertainties and other factors discussed under the sections entitled "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023, as amended, and the other filings the Company makes with the SEC, copies of which may be obtained from the SEC's website, www.sec.gov. All forward-looking statements included in this press release are made only as of the date of this press release, and the Company disclaims any intention or obligation to update or revise any such forward-looking statements to reflect events or circumstances that subsequently occur, or of which the Company hereafter becomes aware, except as required by law. Persons reading this press release are cautioned not to place undue reliance on such forward-looking statements.   

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.

FAQ

How many Bitcoin did Riot produce in September 2024?

Riot produced 412 Bitcoin in September 2024, a 28% increase from August 2024.

What was Riot's total deployed hash rate in September 2024?

Riot's total deployed hash rate reached 28.2 EH/s in September 2024, a 20% increase from August 2024.

How many Bitcoin did Riot hold as of September 2024?

Riot held 10,427 Bitcoin as of the end of September 2024, a 4% increase from August 2024.

What progress did Riot make at its Corsicana Facility in September 2024?

Riot completed Building B1 at the Corsicana Facility in September 2024, bringing the total power capacity to 300 MW.

How did Riot's power credits change in September 2024 compared to August?

Riot's total power credits decreased by 66% to $2.2 million in September 2024 compared to August 2024.