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Riot Platforms Achieves 19% Increase in Bitcoin Production, Mining 6,626 BTC in 2023

ByDayne Lee

Feb 26, 2024

Despite facing stiff competition from rivals who mined more Bitcoin in 2023, Riot Platforms is strategically gearing up for the anticipated Bitcoin halving in 2024, following its significant acquisition of 66,560 mining rigs from MicroBT.

Riot’s Performance Highlights

Riot Platforms, a key player in the Bitcoin mining sector, reported a commendable 19% rise in its Bitcoin production last year, successfully mining 6,626 BTC. This increase was accompanied by a notable surge in annual revenue, primarily fueled by the higher average price of Bitcoin throughout the year, contrasting sharply with the bearish trends of 2022.

A report released by Riot on February 22 detailed a decrease in the average cost to mine a single Bitcoin by approximately $3,686 compared to the previous year, illustrating enhanced efficiency in mining operations.

  • Cost Efficiency: “For 2023, Riot’s cost to mine Bitcoin, net of power credits allocated to self-mining, averaged $7,539 per Bitcoin compared to $11,225 in 2022. This represents a 33% decrease year-over-year,” according to the report.
  • Revenue Growth: The higher valuation of Bitcoin in 2023 contributed to a revenue increase to $280.7 million from $259.2 million in the preceding year. This growth was attributed to the slightly elevated average value of Bitcoin mined, averaging $28,859 per BTC compared to $28,245 in 2022.

The crypto market in 2022 was marred by one of its most severe bear markets, highlighted by the collapse of several key industry players, including the major exchange FTX.

Market and Share Price Dynamics

Riot’s shares experienced a significant 47.47% increase over the past month, despite a 10.65% decline in the last week of trading. As of the latest update, Riot’s shares are valued at $14.85.

In a strategic move in December 2023, Riot expanded its mining capabilities by acquiring 66,560 rigs from MicroBT, marking a major milestone in preparation for the next Bitcoin halving event in April.

Comparison with Industry Peers

2023 saw diverse production outcomes across the Bitcoin mining industry:

  • Core Scientific: Emerged as a leader with 19,274 BTC mined.
  • CleanSpark: Reported a 60% increase from 2022, mining over 7,300 BTC.
  • Marathon Digital: Notably produced 12,852 BTC, with December alone seeing a 56% month-over-month increase and a staggering 290% rise from December 2022.

Legal and Regulatory Developments

In a move reflecting its proactive stance on industry challenges, Riot, alongside the Texas Blockchain Council, initiated a lawsuit against the U.S. Department of Energy, Energy Information Administration, and the Office of Management and Budget. The lawsuit addresses concerns over demands for intrusive data from cryptocurrency miners, marking a significant moment in the ongoing dialogue between the crypto industry and regulatory bodies.

Riot Platforms and Competitors’ BTC Production in 2023

Company NameBTC Mined in 2023Yearly Increase
Riot Platforms6,62619%
Core Scientific19,274
Marathon Digital12,852

Riot Platforms’ strategic investments and operational efficiencies have positioned it favorably within the competitive landscape of Bitcoin mining as it prepares for the 2024 halving. With a focus on reducing mining costs and leveraging market conditions, Riot aims to solidify its standing in the industry amidst evolving market dynamics and regulatory challenges. The anticipated Bitcoin halving and Riot’s proactive legal stance underscore the company’s commitment to navigating the complex terrain of cryptocurrency mining and regulation.

Featured image credit: Timon via Adobe Stock

Dayne Lee

With a foundation in financial day trading, I transitioned to my current role as an editor, where I prioritize accuracy and reader engagement in our content. I excel in collaborating with writers to ensure top-quality news coverage. This shift from finance to journalism has been both challenging and rewarding, driving my commitment to editorial excellence.