Riot Is The Latest Mining Firm To Report Q2 Loss
Riot Blockchain is a Bitcoin mining firm with multiple operations in Texas. Among these operations, Riot’s Whinstone facility in Rockdale, Texas is expected to be North America’s largest Bitcoin mining facility once fully expanded. The company also offers hosting services in their facilities for miners who would like to store and operate their mining machines through Riot. This facility hosts mining operations for two institutional clients.
Their other facility, Corsicana, is expected to be even larger with a 1 gagawatt capability once fully expanded. Riot’s website explains that the first phase of this expansion will cost approximately $333 million, which was scheduled to be invested over 2022 through the first quarter of 2024.
Riot reported $366 million in net loss for Q2. These losses were mainly due to impairment charges. The firm mined 1,395 BTC, which is only down 0.7% from the previous quarter. Revenue fell by 8.7%
Bitfarms also reported a $142 million Q2 loss on August 15 although they reported a 5% increase in revenue. Last quarter, Bitfarms was able to net an income of $5 million. Bitfarms is also currently expanding two 50-megawatt warehouses in Argentina. The firm had to push deliveries for some mining equipment to delay a portion of payments. The firm also had to sell 3,357 BTC in the second quarter to pay a portion of a bitcoin-backed load from Galaxy.
Many mining firms are hurting from the steep decline in Bitcoin prices with ongoing expansion plans.
