CASTLE ROCK, Colo. - Riot Platforms, Inc. (NASDAQ: NASDAQ:RIOT), a key player in Bitcoin mining, has released its unaudited July 2024 production and operational updates. The company produced 370 Bitcoin in July, marking a 45% increase from June's 255 Bitcoin. Despite this monthly surge, production fell by 10% from July 2023 when Riot produced 410 Bitcoin.
Riot has also expanded its operations with the acquisition of Block Mining in Kentucky, adding 1 EH/s to its self-mining capacity. The company aims to reach 5 EH/s in hash rate capacity in Kentucky by year-end.
The average Bitcoin production per day in July was 11.9, up from 8.5 in June, but down from 13.2 year over year. Riot holds 9,704 Bitcoin as of July, a 4% increase from June and a 33% rise from the previous year. No Bitcoin were sold during the month.
The company's total deployed hash rate stood at 23.3 EH/s, a 6% increase from June and a significant 118% rise from the same period last year. The average operating hash rate across all facilities in July was 15.5 EH/s, representing a 37% increase from June and a notable 188% year-over-year growth.
Riot's power strategy involves flexible consumption, capitalizing on low-cost power periods and reducing usage during high demand, as seen with their participation in ERCOT's Four Coincident Peak Program during July. The company's all-in power costs have risen, with the total estimated cost reaching 3.4c/kWh, up from 2.6c/kWh in June and a 109% increase from the previous year.
The company is in the process of developing the Corsicana Facility, which is expected to total 400 MW upon completion of Phase 1 and ultimately reach 1 GW. The Corsicana Facility's substation was energized on April 18th and is expected to add 16 EH/s to Riot's capacity by the end of 2024.
Following the acquisition of Block Mining on July 23rd, Riot raised its 2024 deployed hash rate guidance from 31 EH/s to 36 EH/s. By 2025, the company now anticipates a total self-mining hash rate capacity of 56 EH/s.
Riot Platforms has seen a flurry of activity with its latest financial results and strategic acquisitions. The company reported revenues of $70 million, surpassing the projected $65 million, but adjusted EBITDA was significantly lower than the anticipated $16 million.
Riot Platforms has also acquired Block Mining in a strategic move valued at approximately $92.5 million. This acquisition grants Riot Platforms immediate access to 60 megawatts of power, equating to 1 exahash per second of mining capacity, with the potential to expand to roughly 305 megawatts by the end of 2025.
Needham has maintained a Buy rating on Riot Platforms, increasing the price target to $14 from $13 following these developments. Stifel Canada initiated coverage on Riot Platforms with a Speculative Buy rating and a price target set at $18.00. Roth/MKM also maintained its Buy rating on Riot Platforms stock, with a $20.00 price target, following Riot's recent acquisition of Block Mining.
InvestingPro Insights
In the dynamic field of Bitcoin mining, Riot Platforms, Inc. (NASDAQ: RIOT) has been making notable strides, as reflected in their latest production updates. A deeper dive into the financial health and market performance of Riot using InvestingPro's real-time data and analytics reveals several key insights.
As of the last twelve months leading up to Q2 2024, Riot Platforms held a market capitalization of $2.6 billion, which is indicative of its size and influence in the sector. The company's Price to Earnings (P/E) ratio stood at 21.6, suggesting that investors are willing to pay $21.6 for every dollar of earnings, which aligns with the industry's growth expectations. However, when adjusted for the last twelve months, the P/E ratio appears relatively high at 42.14, hinting at a premium valuation given to the company by the market.
Revenue growth is a critical metric for assessing a company's expansion trajectory, and Riot has reported a growth of 9.21% over the last twelve months as of Q2 2024. This indicates a healthy upward trend in the company's sales, which is also supported by an InvestingPro Tip that analysts anticipate sales growth in the current year. On the flip side, the company's gross profit margin stands at 18.58%, which may raise some concerns about cost management and pricing strategies.
InvestingPro Tips also highlight that Riot holds more cash than debt on its balance sheet, which is a positive sign for financial stability and operational flexibility. Moreover, analysts predict that the company will be profitable this year, aligning with the company's strategic growth plans and operational expansions.
For readers interested in a more comprehensive analysis, InvestingPro offers additional insights and tips. There are 14 more InvestingPro Tips available for Riot Platforms, which can provide a more nuanced understanding of the company's financial health and market position.
Investors considering Riot Platforms as a potential addition to their portfolio can access these insights by visiting the InvestingPro platform and exploring the full suite of metrics and expert opinions available.
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