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Riot Blockchain, Inc. (NASDAQ: RIOT), which is one of the leading Nasdaq-listed public Bitcoin mining firms in the US, recently shared its financial results “as of and for the three-months ended June 30, 2021.”
Riot Blockchain’s unaudited financial statements are also available via the firm’s official website.
As mentioned in a release, the company reports “increased mining revenue by 1,540% to a record $31.5 million for the three-month period ended June 30, 2021, as compared to $1.9 million for the same three-month period in 2020.”
The firm also release the following updates:
- Increased mining revenue margin to 70% for the three-month period ended June 30, 2021, as compared to 25% for the same three-month period in 2020.
- Produced record net income of $19.3 million, or $0.22 per share for the three-month period ended June 30, 2021, as compared to a $(10.6) million net loss, or $(0.31) per share, for the same three-month period in 2020.
- Total cash and Bitcoin of $195.4 million as of June 30, 2021.
Jason Les, CEO at Riot Blockchain, said that they’re quite pleased with their “record quarterly financial results.” Les added that the firm’s improved financial results are “a direct result of Riot’s absolute focus on Bitcoin mining and growing its mining operations.”
He also mentioned:
“With the successful acquisition of Whinstone US, the Company’s growth prospects have been significantly de-risked, and future financial opportunities are very exciting. … 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.”
As noted in the update, Q2 2021 and Recent Financial Highlights
- Riot “continues to attain significant milestones and set up for future opportunities, driven by its focus on Bitcoin mining.”
- Produced “a Company record $19.3 million in net income for the three-month period ended June 30, 2021, as compared to a $(10.6) million net loss for the same three-month period in 2020.”
- Increased mining revenues “by 1,540%, to $31.5 million for the three-month period ended June 30, 2021, as compared to $1.9 million for the same three-month period in 2020.”
- Increased mining revenue margin, “excluding depreciation and amortization, to 70% for the three-month period ended June 30, 2021, as compared to 25% for the same three-month period in 2020.”
- Increased total mined BTC by 38% “on a sequential quarter-over-quarter basis, with 675 BTC mined in the second quarter of 2021, as compared to 491 BTC mined in the first quarter of 2021.”
- Increased total revenues to $34.3 million “for the three-month period ended June 30, 2021, as compared to $1.9 million for the same three-month period in 2020. Included in the consolidated results are the operations of Whinstone, including $2.9 million in revenue, for the approximate one-month post acquisition period.”
- With the acquisition of Whinstone, the Company “determined it has two reportable segments: Cryptocurrency Mining and Data Center Hosting.”
- Substantially all of the current assets as of June 30, 2021, “totalling $221.3 million, are highly liquid. As of July 31, 2021, the Company’s unaudited BTC balance stood at 2,687 BTC, all of which were produced by its mining operations.”
- The average BTC price “used to calculate Riot’s second quarter 2021 mining revenues was approximately $46,600.”
Second Quarter 2021 and Recent Operational Highlights
- Successfully “closed the acquisition of Whinstone, creating one of the largest hosting and mining companies in North America, as measured by developed and future capacity.”
- Initiated a 400 megawatt (“MW”) “expansion at Whinstone with four buildings totaling approximately 240,000 square feet currently under construction.”
- Strengthened the Company’s management team “by appointing William Jackman as General Counsel, Josh Bowman as Director of Human Resources, and Trystine Payfer as Director of Communications.”
- During the three-month period ended June 30, 2021, Riot “received 9,900 S19 Pro Antminers (110 TH) under purchase contracts with Bitmain previously announced in 2020. As of June 30, 2021, the Company had 16,146 miners installed, and 7,500 S19 Pro Antminers in the process of being deployed.”
- Subsequent to June 30, 2021, the Company “installed approximately 4,600 S19 Pro Antminers, resulting in a fleet of 20,746 miners deployed. Riot’s current hash rate capacity is approximately 2.07 exahash per second (“EH/s”).”
- As part of a December 2020 purchase order with Bitmain, 2,000 S19 Pro Antminers were shipped late July and “will be deployed at the Whinstone facility over the coming weeks.”
- By early September, Riot “anticipates that it will have a total of 25,946 Antminers in operation, utilizing approximately 83 MW of energy, with an estimated hash rate capacity of 2.6 EH/s.”
Second Quarter 2021 Financial Results:
Mining margin, calculated as crypto mining revenues “in excess of cost of revenues (excluding depreciation and amortization which is separately stated),” came in at $22.1 million (70% of mining revenue), which “compares to $0.5 million for the same three-month period in 2020.”
As stated in the release:
“The improvements in revenue and gross profit were primarily due to increases in the price of Bitcoin, combined with the greater number and higher efficiencies of the new generation miners currently being deployed, net of increases in the difficulty index associated with solving BTC mining algorithms.”
The announcement also mentioned:
“Selling, general, and administrative (“SG&A”) expenses increased by 58% to $3.5 million, as compared to $2.2 million for the same three-month period in 2020. The increase in SG&A expenses was primarily due to increased personnel as a result of the company’s rapid growth. Acquisition-related costs of $17.0 million were incurred during the second quarter of 2021, for the Whinstone acquisition. Acquisition-related costs incurred during the period are considered to be non-recurring.”
The update further noted that the total income for the quarter ended June 30, 2021 “was $19.3 million, or $0.22 per share, as compared to a net loss of $(10.6) million, or $(0.31) per share, in the same period last year.”
Second quarter 2021 net income, “included several significant income (expense) items, including a realized gain on the sale of long-term investments of $26.2 million, an impairment of crypto currencies of $(17.5 million), a change in fair value of derivative assets of $17.5 million, associated with the Whinstone power agreement, and Whinstone acquisition costs of $(17.0) million,” the update revealed.
As mentioned in the announcement:
“During Q4 2022, Riot anticipates achieving a total hash rate capacity of 7.7 EH/s, assuming full deployment of its anticipated fleet of approximately 81,146 Antminers acquired from Bitmain, 95% of which will be the latest generation S19 series model of miners.”
When “fully deployed,” the firm’s total fleet is “expected to consume approximately 257.6 MW of energy with an overall hash rate efficiency of 33 joules per terahash (J/TH).”
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