CASTLE ROCK, Colo. - Riot Platforms, Inc. (NASDAQ:RIOT), a key player in the Bitcoin mining arena, has reported its production and operational updates for May 2024. The company produced 215 Bitcoins in May, marking a significant decrease from the 375 Bitcoins mined in April 2024 and a 68% drop year-over-year. Despite this, Riot has increased its total deployed hash rate to 14.7 exahashes per second (EH/s), a notable rise from 12.6 EH/s in April and a 39% increase from May 2023.
Riot's CEO, Jason Les, highlighted the completion of the first 100 MW building at the Corsicana Facility in Texas, which contributed 3.1 EH/s to the company's self-mining capacity. Les also mentioned the company's unique power strategy, which generated approximately $7.3 million in Power and Demand Response Credits in May.
Operational updates included the commencement of new MicroBT M60S miner deployments at the Rockdale Facility, which temporarily reduced the deployed hash rate due to the deinstallation of problematic models. Moreover, a lightning strike at the Corsicana Facility led to a brief suspension of operations. The Corsicana Facility is undergoing development with the goal of reaching 1 gigawatt of mining capacity.
Riot anticipates reaching a self-mining hash rate capacity of 31 EH/s by the end of 2024, with orders placed for new miners expected to add 28 EH/s to its capacity. Full deployment is projected for the second half of 2025, with an anticipated total capacity of 41 EH/s.
The company also announced the appointment of Stephen Howell, CEO of ESS Metron, as Chief Operating Officer of Riot, bringing extensive electrical engineering and power generation experience to the role.
The information is based on a press release statement from Riot Platforms, Inc., which outlines the company's performance and future expectations in the Bitcoin mining industry. The company continues to recruit for various positions as it expands its operations.
InvestingPro Insights
Riot Platforms, Inc. (NASDAQ:RIOT), while facing a drop in Bitcoin production, shows a strong commitment to expanding its mining capacity. Investors looking at RIOT's current financial health and future prospects may find the following data and tips from InvestingPro particularly enlightening:
InvestingPro Data highlights that RIOT has a market cap of approximately $2.79 billion USD, with a Price/Earnings (P/E) ratio standing at 13.29. This relatively low P/E ratio, especially when considering the adjusted last twelve months as of Q1 2024 P/E ratio of 19.91, suggests that the company is trading at a low price relative to its near-term earnings growth. Moreover, the company's revenue growth over the last twelve months has been 13.51%, indicating a solid upward trajectory in sales.
Among the InvestingPro Tips, it is noted that analysts anticipate sales growth in the current year for RIOT. This aligns with the company's operational updates, which include an increase in hash rate capacity and infrastructure development. Moreover, RIOT holds more cash than debt on its balance sheet, which may provide a cushion against market volatility and fund further expansion efforts.
Still, not all indicators are positive. RIOT is quickly burning through cash and analysts do not expect the company to be profitable this year. This could be a point of concern for investors considering the company's long-term sustainability and ability to weather the highly volatile cryptocurrency market.
For those interested in a deeper dive into RIOT's financials and strategic positioning, there are additional InvestingPro Tips available at https://www.investing.com/pro/RIOT. By using the coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, gaining access to comprehensive analysis and insights that can further inform investment decisions. There are 16 additional InvestingPro Tips listed for Riot Platforms, Inc., which may help investors weigh the potential risks and rewards associated with the company's stock.
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