The company reportedly calculated its revenue from Bitcoin mining at an average price of $46,600
Bitcoin mining revenues for US-based firm Riot Blockchain increased by a staggering 1,540% over the three months ending 30 June 2021, the company said in an earnings report published yesterday.
According to the firm, quarterly revenue raised from BTC mining activities rose to $31.5 million, up from about $1.9 million recorded in the same quarter during the 2020 financial year.
Riot Blockchain, which trades publicly on Nasdaq, noted in its financial report that the increased mining revenue contributed to the company’s overall profitability in the last quarter. Per the results, net income over the second quarter of 2021 jumped to $19.3 million, a major turnaround for the firm after Q2 2020 saw it make a $10.6 million loss.
The increased income saw the company’s mining revenue margin jump too, with the quarterly figures ending 30 June 2021 accounting for about 70%. In comparison, Riot saw margin figures of roughly 25% during the three months ending 30 June 2020.
Jason Les, Riot Blockchain’s chief executive officer, said in a statement that the impressive financial results the company has seen so far are directly down to their “absolute focus on Bitcoin mining”, and the scaling of mining operations following the acquisition of US mining firm Whinstone.
According to Jason Les, the potential for future growth has increased since the expansion, and the move has “significantly de-risked” Riot’s operations to give rise to further opportunities.
Riot Blockchain has also been increasing its overall Bitcoin holdings, with roughly 2,687 BTC held in company reserves as of 31 July 2021.
Meanwhile, quarter over quarter mining returns in Bitcoin increased 38% in the second quarter, up to 675 bitcoins in those three months compared with about 491 bitcoins generated in the first quarter.
The report also highlights that Riot has substantially revamped its Bitcoin mining operations, with the miner’s hashrate contribution put at around 2.07 exahashes per second (EH/s).
The company expects to reach a hashrate of 7.7 EH/s by Q4, 2022, which will be likely if all of its 81,146 Antminers go into operation by then.