Rriot Blockchain posts quarterly loss of more than $366 million

For the second quarter, the Riot Blockchain mining company posted a net loss of $366.3 million on revenue of $72.9 million.

Riot Reports Second Quarter 2022 Financial Results, Current Operational and Financial Highlights.

“We are extremely encouraged by Riot’s financial resilience and operational achievements this quarter,” @JasonLes_, Riot CEO.

Read More: https://t.co/R314T3BOZH

— Riot Blockchain Inc. (@RiotBlockchain) August 15, 2022

The negative financial result was driven mainly by impairment of goodwill ($349.1 million) and bitcoin reserves ($99.8 million).

Rriot earned $5.7 million in credits for feeding electricity back into the grid from the Texas grid operator, ERCOT.

“We believe that the ability to sell electricity back to the grid at market spot prices, thereby reducing our own operating costs, is an integral part of our overall strategy. While participation in various demand-response programs on the grid may affect our bitcoin production, we view this as an important part of our partnership approach with ERCOT”, the company said.

In the second quarter Riot mined 1,395 BTC — down 0.7% from the prior period.

Company revenue fell by 8.7%. Of the total $72.9 million, $46.2 million went to mining operations, and hosting services brought in $9.8 million.

The company said that lower bitcoin prices and higher variable mining costs negatively affected its financial results.

As of June 30, Riot operated a fleet of 44,720 ASIC miners with a total hashrate of 4.4 EH/s.

In the second quarter the firm completed construction at the Whinstone facility in Texas of the first immersion-cooled building housing 23,000 miners.

Riot moved all of its own installations from Coinmint’s data centre in Massena, New York, to Whinstone. This is expected to improve mining profitability by reducing electricity and hosting costs.

All equipment arriving at the data centre, including 9,316 new Antminer S19j Pro units received in July, is being connected with immersion cooling.

Riot plans to deploy about 115,450 miners with a total hashrate of around 12.5 EH/s by early 2023. It is expected that nearly the entire fleet will consist of S19-series installations.

In June, most public miners began liquidating bitcoin reserves, having realised 14,600 BTC.

In July, the trend continued, but among those selling digital gold, only Riot’s monthly mined cryptocurrency exceeded the volume liquidated.

Follow ForkLog Bitcoin news on our Telegram — cryptocurrency news, prices and analysis.