The Colorado-based bitcoin miner – Riot Blockchain – reported a total revenue of nearly $260 million for 2022, a 22% increase compared to 2021. It mined 5,554 BTC and boosted its hash rate capacity to an all-time high of 9.7 EH/s.
The positive results come in spite of the devastating bear market that reigned during the bigger part of the year, and Riot’s shrunk production levels in the summer due to a heat wave.
Against All Odds
Riot produced 46% more bitcoin in 2022 than in 2021. However, the crypto market collapse affected its BTC mining revenue which stood at $156 million compared to the $184 million registered the year before.
CEO Jason Les described Riot’s performance in 2022 as “remarkable,” highlighting the reached ATH in hash rate capacity of 9.7 EH/s (the figure was 3.1 EH/s as of December 31, 2021), the expansion at the Rockdale Facility, and maintaining a “strong financial position.”
“We more than tripled our hash rate capacity, leading to numerous monthly production records, and finished the year at an all-time high of 9.7 EH/s in hash rate capacity, which is a testament to the hard work our best-in-class team has put in throughout 2022.
Three new buildings at our Rockdale Facility were completed in 2022, and a fourth is nearing completion in Q1 2023, which, when completed, will finalize our Rockdale Facility expansion,” the exec clarified.
Riot also realized significant benefits from its power strategy that allowed it to cut production costs. Despite the unsatisfactory condition of the cryptocurrency sector, the firm finished 2022 with approximately $230 million in cash and no long-term debt. It held 6,974 BTC as of the end of the year (currently worth over $156 million) and vowed to follow its expansion plans throughout 2023.
The miner’s results could have been even more impressive had a massive heat wave not impacted the Texas region (where most of its mining fleet is located) in the summer. As CryptoPotato reported, Riot produced nearly 30% less bitcoin in July than in June because it had to shut down some of its machinery when temperatures were hovering around 40 degrees Celsius.
It’s Not All Rainbows and Sunshine
Alongside the positive mining performance, Riot reported a net loss of nearly $510 million in 2022 (compared to just $15.4 million in 2021). Diluted net loss per share spiked from $0.17 in 2021 to $3.65 last year.
The prolonged crypto winter has negatively affected RIOT’s stocks which are currently worth around $6.20, a 61% decrease year-over-year.