Riot Blockchain saw sales spike in the third quarter after mining 222 bitcoins in the three months
Publicly traded bitcoin mining company Riot Blockchain saw sales surge in the previous quarter. The company reported its July-September earnings yesterday.
Riot Blockchain had mining sales of $ 2.4 million for the third quarter of the year, according to earnings report. This corresponds to an increase of 42% compared to the same period of the previous year. The company’s increased hash performance and the 15% increase in the price of Bitcoin in the third quarter were the main reasons behind Riot Blockchain’s revenue surge.
Although mining capacity declined quarter over quarter (QoQ), it increased year over year (year over year). In the second quarter of 2020, Riot Blockchain mined 227 bitcoins. In the final quarter, however, the number dropped to 222 bitcoins. Despite the quarterly decline, the 222 bitcoins mined by the company are 41% higher than in the prior-year quarter.
Last year, the increase in bitcoin mining capacity could be due to the decision to focus solely on bitcoin mining. Before that, Riot Blockchain also mined Litecoin and Bitcoin Cash in addition to Bitcoin.
Riot Blockchain has also increased its mining capacity over the past three months. Currently, the company’s mining capacity is 556 peta hash per second (PH / s) which is what they expected. The current hash power is 450% higher than the 101 PH / s they recorded in Q3 2019.
Revolt to expand mining
The company plans to expand its mining operations. Riot is acquiring new Bitmain machines, according to earnings report. Riot stated, “As previously announced, the company recently entered into four additional sales agreements with Bitmain to purchase 16,600 models (110 TH / s) of S19-Pro Antminers for a total purchase price of $ 37.2 million in installments pay is. The company expects the first 3,500 of these new miners to be shipped in the fourth quarter of 2020. The remaining 13,100 miners will be delivered in monthly installments from the first half of 2021. “
Riot expects its new 16,600 machines to be shipped and deployed in stages by the end of the second quarter of next year.
Riot Blockchain and other mining companies have benefited from the rally in the cryptocurrency market this year. Bitcoin is up 114% so far this year, with the leading cryptocurrency now trading above the $ 15,000 mark.