Bitcoin mining firm Riot Platforms has released its Q2 financial results, showing a decline in mined cryptocurrency due to the recent halving.

Colorado-based Bitcoin mining firm Riot Platforms reported its Q2 financial results, highlighting a significant reduction in mined cryptocurrency attributed to the recent halving event in April. The company revealed total revenue of $70 million for the quarter ending July 31, marking an 8.7% decline compared to the same period in 2023. This revenue dip was mainly due to a $9.7 million decrease in engineering revenues, partially offset by a $6 million increase in Bitcoin mining revenue.

During the quarter, the firm mined 844 BTC, representing over a 50% decrease from Q2 2023. The primary factors behind this decline were the halving event and increasing network difficulty. Riot Platforms reported a net loss of $84.4 million, or $0.32 per share, missing Zack Research’s forecast of a $0.16 loss per share.

Halving Increases Competitive Pressure

The Colorado-headquartered firm disclosed that the average cost to mine one BTC in Q2, including power credits, surged to $25,327. This marks a noticeable 341% increase from $5,734 per BTC in the same quarter of 2023. Despite this significant rise in production costs, Riot remains optimistic about maintaining competitiveness through recent deals.

Following the acquisition of crypto mining firm Block Mining, Riot raised its deployed hash rate guidance from 31 EH/s to 36 EH/s by the end of 2024, and increased the 2025 guidance from 40 EH/s to 56 EH/s.

“Despite this reduction in available production for all Bitcoin miners, Riot posted $70 million in revenue for the quarter and maintained strong gross margins in our core Bitcoin mining business.”

Riot chief executive Jason Les commented on the firm’s financials, noting that despite the halving, the mining firm succeeded in accomplishing “significant operational growth and execution of our long-term strategy.”

Following the Q2 financial report, Riot Platforms shares fell by 1.74% to $10.19. Meanwhile, the American miner continues its pursuit of Canadian rival Bitfarms, recently acquiring an additional 10.2 million BITF shares, increasing its stake in Bitfarms to 15.9%.

Riot first announced a $950 million acquisition bid for Bitfarms in late May, claiming Bitfarms’ founders weren’t acting in the best interests of all shareholders. Bitfarms responded that Riot’s offer “significantly undervalues” its growth prospects and subsequently implemented a shareholder rights plan, also known as a “poison pill,” to protect its strategic review process from hostile takeover attempts.

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