Riot Platforms, a prominent player in vertically integrated Bitcoin mining, reported its financial results for the full year ended December 31, 2024. The company achieved remarkable milestones, including record revenue and significant growth in Bitcoin holdings, despite industry challenges such as the Bitcoin halving event and rising global hash rates.
Key Financial and Operational Highlights
Riot Platforms generated total revenue of $376.7 million in 2024, a substantial increase from $280.7 million in 2023. This growth was primarily driven by a $132.0 million surge in Bitcoin mining revenue. The company produced 4,828 Bitcoin during the year, compared to 6,626 in the previous year, reflecting the impact of the halving event and increased network difficulty.
The average cost to mine Bitcoin, excluding depreciation, was $32,216 per coin in 2024, up from $3,831 in 2023. This increase was influenced by reduced power credits, the halving event, and a 67% rise in the global network hash rate. Despite these challenges, Riot maintained an industry-leading financial position with $439.1 million in working capital, including $277.9 million in cash and $134.3 million in marketable equity securities.
Bitcoin Holdings and Yield Strategy
Riot held 17,722 unencumbered Bitcoin at year-end, valued at approximately $1.65 billion based on a market price of $93,354 per Bitcoin on December 31, 2024. The company’s Bitcoin yield strategy included a successful convertible senior notes offering, raising $579 million in net proceeds. These funds were used to acquire an additional 5,784 Bitcoin, resulting in a 141% increase in total holdings compared to the prior year and a 39% Bitcoin yield for shareholders.
Engineering and Infrastructure Developments
Riot’s engineering revenue decreased to $38.5 million in 2024 from $64.3 million in 2023, primarily due to delays in a large manufacturing contract caused by supply chain constraints. However, the company made significant strides in infrastructure, including the energization of its Corsicana Facility and acquisitions of Block Mining and E4A Solutions. These initiatives enhanced Riot’s electrical engineering capabilities and supported its Bitcoin mining operations.
Strategic Focus for 2025
Looking ahead, Riot is exploring opportunities in the AI and high-performance computing (HPC) sectors for its power assets at the Corsicana Facility. With one gigawatt of overall capacity, including 600 megawatts of unused power, the company aims to leverage this resource near Dallas, Texas, to maximize shareholder value. 👉 Explore advanced infrastructure strategies
Adjusted EBITDA and Non-GAAP Measures
Riot reported a record adjusted EBITDA of $463.2 million in 2024, demonstrating the effectiveness of its Bitcoin treasury policy. This metric, which excludes non-cash and non-recurring items, provides a clearer view of the company’s core mining operations. Net income for the year was $109.4 million, a significant improvement from a net loss of $49.5 million in 2023.
Frequently Asked Questions
What caused the increase in Riot’s mining costs in 2024?
The increase was primarily due to a 53% decrease in power credits received, the Bitcoin halving event in April 2024, and a 67% rise in the average global network hash rate. These factors elevated the average cost to mine Bitcoin to $32,216 per coin.
How did Riot achieve a 39% Bitcoin yield for shareholders?
Riot raised $579 million through a convertible notes offering and used the proceeds to acquire 5,784 additional Bitcoin. This increased total holdings by 141% year-over-year, enhancing shareholder value through strategic accumulation.
What are Riot’s plans for the Corsicana Facility?
The company is pursuing opportunities in AI and HPC sectors to utilize the facility’s unused 600 megawatts of power capacity. This initiative aims to maximize the value of its assets located near Dallas, Texas.
Why did engineering revenue decrease in 2024?
Engineering revenue declined due to delays in a large governmental manufacturing contract caused by supply chain constraints. This impacted material receipts and delayed revenue recognition.
What is Riot’s adjusted EBITDA, and why is it important?
Adjusted EBITDA is a non-GAAP measure that excludes non-cash and non-recurring items, providing a clearer view of core mining performance. It helps investors assess operational efficiency and strategic execution.
How does Riot’s power strategy contribute to its low mining costs?
Riot’s unique power strategy, including participation in power curtailment programs, enabled an all-in power cost of 3.4 cents per kilowatt-hour across all facilities. This efficiency supports competitive mining costs despite network challenges.
Conclusion
Riot Platforms’ 2024 performance underscores its resilience and strategic agility in the dynamic Bitcoin mining industry. With record revenue, a robust Bitcoin treasury, and focused growth initiatives, the company is well-positioned for future opportunities in both cryptocurrency and emerging technology sectors. 👉 Learn more about Bitcoin yield strategies