TL;DR
- Riot Platforms produced 322 Bitcoin in August 2024, down 13% from July.
- The company now holds more than 10,000 Bitcoin, an increase of 37% compared to last year.
- Riot optimized energy costs at its Texas facilities during the month of peak energy demand.
Riot Platforms, one of the leading Bitcoin mining companies, has passed a major milestone by reaching 10,000 Bitcoin in its reserves, representing a 37% increase compared to the same period last year.
Despite this achievement, the company reported a decrease in its Bitcoin production in August 2024, producing 322 BTC, 13% less than in July, when it mined 370 BTC.
Riot Produces 322 #Bitcoin in August 2024 and Exceeds 10,000 Bitcoin Held.
“In August, Riot produced 322 Bitcoin and continued to exercise our unique power strategy, ensuring that we optimized our energy costs while making more power available to the grid during periods of peak…
— Riot Platforms, Inc. (@RiotPlatforms) September 5, 2024
This decrease is also reflected in comparison to August 2023, when Riot produced 333 BTC.
Bitcoin mining has faced significant challenges in recent months due to rising energy costs and changes to the Bitcoin network following the halving of block rewards in April 2024.
Riot, however, has managed to stay competitive thanks to its unique energy optimization strategy.
During August, the company did not sell any Bitcoin, unlike last year when it generated $8.6 million in net income from the sale of 300 BTC in the same month.
Jason Les, CEO of Riot, explained that the company has focused on reducing energy costs while contributing to the electrical system during times of high demand.
Riot was able to reduce energy costs at its Rockdale, Texas, facility to $20 per megawatt-hour (MWh) by earning energy credits for feeding electricity back into the grid during peak demand.
The Corsicana facility, which buys energy at real-time prices, achieved a total cost of $39/MWh in August.
Despite the decline in production, Riot remains firmly focused on growing its mining capacity, fueled by its recent expansion to a new facility in Kentucky.
Riot Platforms expansion plans and upcoming goals
Riot Platforms is currently developing Phase 1 of its Corsicana facility, which once complete will have a total mining capacity of 1 gigawatt.
The company expects to complete the deployment of miners in building B1, one of the key areas of this facility, by the end of September 2024.
Additionally, Riot has set ambitious goals to increase its hash rate, aiming to reach 28 EH/s by Q3 and reach 36 EH/s by the end of the year.
This expansion is supported by the acquisition of facilities in Kentucky, which will help the company strengthen its operational capacity.
In terms of corporate governance, Riot, which owns a 19.9% stake in mining company Bitfarms, has sent an open letter to Bitfarms shareholders requesting changes to its board of directors to maximize value for all shareholders.
This move comes shortly after Bitfarms announced the acquisition of Stronghold Digital Mining for approximately $125 million, which includes assuming $50 million in debt.
Bitfarms responded by clarifying that the recent changes to its board were made independently and are not related to Riot’s proposal.
With its expansion and optimization strategies, Riot Platforms continues to establish itself as one of the most important players in Bitcoin mining, adapting to changing market conditions while maintaining its focus on long-term profitability.
