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What Happened: Nasdaq-listed Bitcoin (CRYPTO: BTC) mining firm Riot Blockchain Inc (NASDAQ: RIOT) reported record revenues in the second quarter of 2021.
In a statement on Monday, the company said its mining revenue increased by 1540% to a record $31.5 million over the second quarter from the $1.9 million during the same period in 2020.
This massive growth in Bitcoin-mining-related revenue, coupled with a 70% increase in its mining revenue margin, enabled Riot to produce $19.3 million of net income in Q2 2021. During the same period last year, Riot reported a net loss of $10.6 million.
“With the successful acquisition of Whinstone US (“Whinstone”), the Company’s growth prospects have been significantly de-risked, and future financial opportunities are very exciting,” said Jason Le, chief executive officer at Riot, referring to the company’s recent expansion in Texas.
“Riot is aggressively expanding its capacity at Whinstone, which is expected to provide the critical infrastructure necessary to successfully execute on driving continued growth for the Company.”
Whinstone alone accounted for $2.9 million in revenue for the quarter, despite only being operational for one month after the acquisition.
Price Action: After making its Q2 earnings public, Riot’s shares jumped 7.6% higher on Monday to a price of $36.93 before closing at $35.73.
Meanwhile, Bitcoin had dropped below $50,000 at press time. The market-leading digital asset exchanged hands at a price of $49,300, losing around 2% over the past 24-hours.
The average BTC price used to calculate Riot’s second-quarter 2021 mining revenues was approximately $46,600.
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