Riot Blockchain Reports “Record” Q2 2021 Financial Results, Shares Latest Operational, Financial Highlights

Riot Blockchain, Inc. (NASDAQ: RIOT), which is likely one of the main Nasdaq-listed public Bitcoin mining companies within the US, lately shared its monetary outcomes “as of and for the three-months ended June 30, 2021.”

Riot Blockchain’s unaudited monetary statements are additionally out there by way of the agency’s official web site.

As mentioned in a launch, the corporate stories “elevated mining income by 1,540% to a report $31.5 million for the three-month interval ended June 30, 2021, as in comparison with $1.9 million for a similar three-month interval in 2020.”

The agency additionally launch the next updates:

  • Increased mining income margin to 70% for the three-month interval ended June 30, 2021, as in comparison with 25% for a similar three-month interval in 2020.
  • Produced report web earnings of $19.3 million, or $0.22 per share for the three-month interval ended June 30, 2021, as in comparison with a $(10.6) million web loss, or $(0.31) per share, for a similar three-month interval in 2020.
  • Total money and Bitcoin of $195.4 million as of June 30, 2021.

Jason Les, CEO at Riot Blockchain, mentioned that they’re fairly happy with their “report quarterly monetary outcomes.” Les added that the agency’s improved monetary outcomes are “a direct results of Riot’s absolute concentrate on Bitcoin mining and rising its mining operations.”

He additionally talked about:

“With the profitable acquisition of Whinstone US, the Company’s development prospects have been considerably de-risked, and future monetary alternatives are very thrilling. … Riot is aggressively increasing its capability at Whinstone, which is anticipated to offer the essential infrastructure essential to efficiently execute on driving continued development for the Company.”

As famous within the replace, Q2 2021 and Recent Financial Highlights

  • Riot “continues to realize important milestones and arrange for future alternatives, pushed by its concentrate on Bitcoin mining.”
  • Produced “a Company report $19.3 million in web earnings for the three-month interval ended June 30, 2021, as in comparison with a $(10.6) million web loss for a similar three-month interval in 2020.”
  • Increased mining revenues “by 1,540%, to $31.5 million for the three-month interval ended June 30, 2021, as in comparison with $1.9 million for a similar three-month interval in 2020.”
  • Increased mining income margin, “excluding depreciation and amortization, to 70% for the three-month interval ended June 30, 2021, as in comparison with 25% for a similar three-month interval in 2020.”
  • Increased complete mined BTC by 38% “on a sequential quarter-over-quarter foundation, with 675 BTC mined within the second quarter of 2021, as in comparison with 491 BTC mined within the first quarter of 2021.”
  • Increased complete revenues to $34.3 million “for the three-month interval ended June 30, 2021, as in comparison with $1.9 million for a similar three-month interval in 2020. Included within the consolidated outcomes are the operations of Whinstone, together with $2.9 million in income, for the approximate one-month publish acquisition interval.”
  • With the acquisition of Whinstone, the Company “decided it has two reportable segments: Cryptocurrency Mining and Data Center Hosting.”
  • Substantially the entire present property as of June 30, 2021, “totalling $221.3 million, are extremely liquid. As of July 31, 2021, the Company’s unaudited BTC steadiness stood at 2,687 BTC, all of which have been produced by its mining operations.”
  • The common BTC value “used to calculate Riot’s second quarter 2021 mining revenues was roughly $46,600.”

Second Quarter 2021 and Recent Operational Highlights

  • Successfully “closed the acquisition of Whinstone, creating one of many largest internet hosting and mining firms in North America, as measured by developed and future capability.”
  • Initiated a 400 megawatt (“MW”) “growth at Whinstone with 4 buildings totaling roughly 240,000 sq. ft at present underneath building.”
  • Strengthened the Company’s administration staff “by appointing William Jackman as General Counsel, Josh Bowman as Director of Human Resources, and Trystine Payfer as Director of Communications.”
  • During the three-month interval ended June 30, 2021, Riot “obtained 9,900 S19 Pro Antminers (110 TH) underneath buy contracts with Bitmain beforehand introduced in 2020. As of June 30, 2021, the Company had 16,146 miners put in, and seven,500 S19 Pro Antminers within the technique of being deployed.”
  • Subsequent to June 30, 2021, the Company “put in roughly 4,600 S19 Pro Antminers, leading to a fleet of 20,746 miners deployed. Riot’s present hash price capability is roughly 2.07 exahash per second (“EH/s”).”
  • As a part of a December 2020 buy order with Bitmain, 2,000 S19 Pro Antminers have been shipped late July and “will likely be deployed on the Whinstone facility over the approaching weeks.”
  • By early September, Riot “anticipates that it’ll have a complete of 25,946 Antminers in operation, using roughly 83 MW of power, with an estimated hash price capability of two.6 EH/s.”

Second Quarter 2021 Financial Results:

Mining margin, calculated as crypto mining revenues “in extra of value of revenues (excluding depreciation and amortization which is individually acknowledged),” got here in at $22.1 million (70% of mining income), which “compares to $0.5 million for a similar three-month interval in 2020.”

As acknowledged within the launch:

“The enhancements in income and gross revenue have been primarily on account of will increase within the value of Bitcoin, mixed with the higher quantity and better efficiencies of the brand new era miners at present being deployed, web of will increase within the issue index related to fixing BTC mining algorithms.”

The announcement additionally talked about:

“Selling, common, and administrative (“SG&A”) bills elevated by 58% to $3.5 million, as in comparison with $2.2 million for a similar three-month interval in 2020. The improve in SG&A bills was primarily on account of elevated personnel on account of the corporate’s fast development. Acquisition-related prices of $17.0 million have been incurred in the course of the second quarter of 2021, for the Whinstone acquisition. Acquisition-related prices incurred in the course of the interval are thought of to be non-recurring.”

The replace additional famous that the whole  earnings for the quarter ended June 30, 2021 “was $19.3 million, or $0.22 per share, as in comparison with a web lack of $(10.6) million, or $(0.31) per share, in the identical interval final 12 months.”

Second quarter 2021 web earnings, “included a number of important earnings (expense) gadgets, together with a realized acquire on the sale of long-term investments of $26.2 million, an impairment of crypto currencies of $(17.5 million), a change in honest worth of by-product property of $17.5 million, related to the Whinstone energy settlement, and Whinstone acquisition prices of $(17.0) million,” the replace revealed.

As talked about within the announcement:

“During This autumn 2022, Riot anticipates attaining a complete hash price capability of seven.7 EH/s, assuming full deployment of its anticipated fleet of roughly 81,146 Antminers acquired from Bitmain, 95% of which would be the newest era S19 sequence mannequin of miners.”

When “totally deployed,” the agency’s complete fleet is “anticipated to devour roughly 257.6 MW of power with an total hash price effectivity of 33 joules per terahash (J/TH).”

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About the Author: Daniel