CASTLE ROCK, Colo. - Riot Platforms, Inc. (NASDAQ: NASDAQ:RIOT), a key player in Bitcoin mining, has reported its unaudited production and operations updates for April 2024, noting a decrease in Bitcoin production compared to previous months and the prior year. The company produced 375 Bitcoins in April, down 12% from March and a 41% decrease from April 2023. Despite the decline in production, Riot's Bitcoin holdings increased by 4% month-over-month and 25% year-over-year, reaching 8,872 Bitcoins by the end of April.
The company also announced the energization of its second dedicated Bitcoin mining facility in Corsicana, Texas. This development is anticipated to more than double Riot's current hash rate capacity to 31 EH/s by the end of 2024, due to the deployment of latest-generation MicroBT immersion-cooled miners. The Corsicana Facility, once fully operational, is expected to have a total mining capacity of 1 gigawatt.
Riot continues to expand its operations with the construction of additional buildings at the Corsicana site and expects to complete three more 100 MW buildings within the year. The company's growth strategy also includes significant miner purchases, with orders placed for both immersion and air-cooled miners intended to enhance the self-mining capacity at its facilities.
The financial implications of these developments include estimated power curtailment credits of $0.9 million for April, up significantly from the previous year, and demand response credits of $1.2 million, though these were down from April 2023. Riot did not sell any Bitcoins in April, holding its assets amidst the market's movements.
Riot's operational updates come ahead of its participation in several industry conferences throughout May, including Bitcoin Asia in Hong Kong and the B. Riley 24th Annual Institutional Investor Conference in Los Angeles. The company is also actively recruiting for various positions to support its expansion.
The information in this article is based on a press release statement from Riot Platforms, Inc. and does not include any subjective assessments or forward-looking statements. The reported facts provide insights into the current state and future plans of Riot as it aims to strengthen its position in the Bitcoin mining industry.
InvestingPro Insights
Riot Platforms, Inc. (NASDAQ: RIOT) has been navigating a complex landscape in the Bitcoin mining sector, with its operational metrics reflecting both the challenges and strategic initiatives the company is undertaking. As of the latest updates, Riot holds a market capitalization of approximately $3.01 billion. The company's P/E ratio stands at 14.35, suggesting a valuation that investors might find appealing when considering near-term earnings potential. This is further underscored by a PEG ratio of 0.17 over the last twelve months as of Q1 2024, which indicates a potentially favorable growth trajectory in relation to its earnings.
InvestingPro Tips highlight that Riot holds more cash than debt on its balance sheet and analysts anticipate sales growth in the current year. These factors are crucial for investors considering the financial health and future revenue prospects of the company. However, concerns are also raised by the fact that Riot is quickly burning through cash, and analysts do not anticipate the company will be profitable this year.
For those looking to delve deeper into the financials and operational metrics of Riot Platforms, Inc., there are 15 additional InvestingPro Tips available. These tips provide a comprehensive analysis that may help in making informed investment decisions. To access these insights, visit https://www.investing.com/pro/RIOT and consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
While Riot's Bitcoin production has seen a downturn, the company's strategic investments in new mining facilities and technology could position it for recovery and growth as the market evolves. The InvestingPro data and tips offer a multifaceted view of Riot's current standing and future potential, which is invaluable for stakeholders and potential investors alike.
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