Bitcoin Mining company Riot Platformsreported a significant increase in losses in the second quarter of this year as challenges stemming from the Bitcoin halving event in April continued to impact its financial performance.
Riot Platforms Reports Bigger Q2 Losses, Increases Stake in Bitfarms
Riot Platforms reported a net loss of $84.4 million in Q2, a sharp increase from the $27.4 million loss reported in the same period last year.
The company’s total revenue also declined from $76.7 million a year earlier, falling to $70 million.
The revenue decline was primarily due to a $9.7 million decrease in engineering revenue, partially offset by a $6 million increase in Bitcoin mining revenue, according to the firm’s latest quarterly report published on Wednesday.
The company produced 844 Bitcoins in the second quarter, a 52% decrease compared to the same period of the previous year, and the main reasons for this decrease were Bitcoin’s halving and the increase in network difficulty.
Despite the drop in production, Riot nearly doubled its installed hash rate, reaching a total capacity of 22 exahashes per second (EH/s) as of the end of June.
CEO Jason Les stated that the company aims to reach a total self-mining hash rate capacity of 36 EH/s by the end of the year.
Riot Platforms has revealed its operational updates as well as its ongoing strategic interest in rival mining firm Bitfarms.
The company purchased approximately 10.2 million additional Bitfarms shares in July. The move comes after Riot’s attempt to buy Bitfarms for $950 million in May was met with resistance.
*This is not investment advice.
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