In a recently published report on February 22, Riot Platforms, a renowned Bitcoin mining firm, revealed impressive performance metrics for the year 2023. The company witnessed a substantial 19% surge in the number of bitcoin mined, reaching a total of 6,626 BTC.
This notable increase in bitcoin production is attributed to various factors, with a significant impact stemming from the higher average price of bitcoin throughout 2023 compared to the bearish market conditions in 2022.
Cost Efficiency and Revenue Growth
The report highlights a noteworthy achievement in cost efficiency, as Riot Platforms successfully reduced its average cost to mine a single bitcoin in 2023 by approximately $3,686 when compared to the preceding year.
The cost, net of power credits allocated to self-mining, averaged $7,539 per bitcoin in 2023, reflecting a substantial 33% year-over-year decrease from the $11,225 recorded in 2022.
Moreover, the firm reported a total revenue of $280.7 million in 2023, marking a notable uptick from the $259.2 million generated in 2022. The increase in bitcoin Mining revenue is attributed to higher value of bitcoin mined in 2023, averaging $28,859 per bitcoin compared to the $28,245 per bitcoin in 2022.
Riot Platforms Resilience
It is important to note that the year 2022 was marked by one of the most severe bear markets in the digital asset industry, witnessing the collapse of several firms, including once-leading exchange FTX.
Despite this, Riot Platforms has demonstrated resilience, evidenced by a 47.47% surge in its share price over the past month. However, it has experienced a decline of around 10.65% over the last week.
Hash Rate Expansion Plans
Looking ahead, Riot Platforms has outlined ambitious plans for hash rate growth. The company intends to energize the first building (Building A1) at its new Corsicana Facility by the end of Q1 2024. This strategic plan precedes the Bitcoin halving scheduled for April, positioning Riot Platforms for increased efficiency and profitability in the mining space.
Subsequent phases include bringing online Building A2 in Q2 2024 and Buildings B1 & B2 during the third and fourth quarters of 2024. This trajectory aims to propel Riot’s self-mining hash rate from 12.4 EH/s to over 28 EH/s by the end of 2024, as it states:
“At this pace, Riot’s self-mining hash rate is expected to grow from 12.4 EH/s to over 28 EH/s by the end of 2024. Phase II of the Corsicana Facility will bring two additional buildings online by the end of 2025, increasing total self-mining hash rate to over 38 EH/s.”
It is important to note that Riot Platforms made headlines by acquiring 66,560 mining rigs from manufacturer MicroBT in December 2023. This marks as one of the most significant expansions of hash rate in the company’s history.
Overall Bitcoin Miners’ Performance
In the wider landscape of Bitcoin mining, 2023 saw diverse production outcomes for other firms. While Core Scientific generated 19,274 bitcoin, CleanSpark mined over 7,300 bitcoin, observing a notable 60% surge from 2022.
On the other hand, Marathon Digital mined 12,852 bitcoin in 2023, marking a substantial 290% increase over December 2022. These distinct performances showcase how companies adeptly navigate market fluctuations and employ strategic initiatives for sustainable growth.
