CASTLE ROCK, Colo. - Riot Platforms, Inc. (NASDAQ: NASDAQ:RIOT), a key player in Bitcoin mining, has released its unaudited production and operations updates for March 2024, highlighting the mining of 425 Bitcoin for the month. This represents a slight increase from February's 418 Bitcoin, but a significant decrease from the 695 Bitcoin mined in March of the previous year.
The company also reported an increase in Bitcoin holdings, reaching 8,490 Bitcoins by the end of March, up from 8,067 at the end of February, and a substantial increase from the 7,072 held at the same time last year.
In terms of operational capacity, Riot's deployed hash rate remained stable at 12.4 exahashes per second (EH/s) from February to March, marking an 18% increase from March 2023. The average operating hash rate also saw a growth, reaching 8.6 EH/s, up from 7.6 EH/s in the same month the previous year.
Riot's CEO, Jason Les, announced that the company's Corsicana Facility's first building is expected to begin operations in mid-April, which will contribute an additional 3.7 EH/s to Riot's self-mining hash rate. The development of three additional buildings at the Corsicana Facility is underway, which is projected to add a total of 13 EH/s of self-mining capacity by the end of the year.
The Corsicana Facility, which is currently under development, is anticipated to have 400 megawatts of mining capacity upon the completion of its first phase and 1 gigawatt in total upon full development. The company has commenced the installation of miners in the first building and has completed the foundation for the second building, with operations expected to start in Q2 2024.
Riot has placed multiple orders for miners from MicroBT to be deployed at both the Corsicana and Rockdale facilities, which collectively will add an estimated 28 EH/s to Riot's self-mining capacity. Full deployment is expected by the second half of 2025, with a total self-mining hash rate capacity projected to reach 41 EH/s.
As of the end of March 2024, Riot reported approximately $685 million in cash on hand and 8,490 unencumbered Bitcoin, totaling roughly $1.3 billion in liquidity based on the month-end market price of Bitcoin.
This article is based on a press release statement from Riot Platforms, Inc.
InvestingPro Insights
Riot Platforms, Inc. (NASDAQ: RIOT), while bolstering its Bitcoin mining capabilities and expanding its operational facilities, presents a mixed financial outlook according to the latest metrics from InvestingPro. The company's market capitalization stands at $2.61 billion, reflecting its position in the industry despite recent market volatility. Analysts tracking RIOT have highlighted the company's strong liquidity position, noting that it holds more cash than debt, which is a positive sign for investors considering the company's expansion plans and the volatile nature of the cryptocurrency market.
However, challenges remain, as RIOT's gross profit margin over the last twelve months as of Q4 2023 was relatively low at 9.39%, which, coupled with an operating income margin of -50.46%, suggests that the company faces headwinds in translating revenue into profit. Additionally, the stock has experienced significant price fluctuations, with a 15.93% decline over the last week and a 23.66% drop over the last month, underscoring the volatile nature of RIOT's stock price movements.
InvestingPro Tips for RIOT indicate that analysts do not expect the company to be profitable this year, and the stock is trading at a high revenue valuation multiple. For investors seeking deeper insights and additional analysis, there are 14 more InvestingPro Tips available, which can be accessed through InvestingPro's platform, including expectations for sales growth in the current year and a detailed look at the company's valuation metrics.
For those interested in exploring these metrics further, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro. This offer can provide investors with a more comprehensive understanding of RIOT's financial health and market position as the company continues to expand its mining operations and navigate the dynamic cryptocurrency landscape.
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