The company reportedly calculated its bitcoin mining earnings at an average price of $ 46,600
Bitcoin mining revenues for US company Riot Blockchain rose an incredible 1,540% in the three months ended June 30, 2021, the company said in an earnings report released yesterday.
According to the company, quarterly revenue from BTC mining activities rose to $ 31.5 million, up from approximately $ 1.9 million in the same quarter of fiscal 2020.
Riot Blockchain, which is publicly traded on the Nasdaq, noted in its financial report that the increase in mining revenues over the past quarter contributed to the company’s overall profitability. According to the results, net income rose to $ 19.3 million in the second quarter of 2021, a major turnaround for the company after posting a loss of $ 10.6 million in the second quarter of 2020.
The increased revenue also increased the company’s profit margin in mining, with the quarterly numbers as of June 30, 2021 accounting for about 70%. By comparison, Riot posted margins of around 25% for the three months ended June 30, 2020.
Jason Les, chief executive officer of Riot Blockchain, said in a statement that the formidable financial results the company has achieved to date are directly due to its “absolute focus on Bitcoin mining”, and the scaling of the mining operations following the acquisition of US mining company Whinstone.
According to Jason Les, the potential for future growth has increased since the expansion, and the move has “significantly reduced risk” Riots operations to open up more opportunities.
Riot Blockchain has also increased its total Bitcoin holdings, with around 2,687 BTC held in corporate reserves as of July 31, 2021.
Meanwhile, mining returns on bitcoin rose 38% quarter to quarter in the second quarter, up to 675 bitcoins in those three months, compared to roughly 491 bitcoins generated in the first quarter.
The report also highlights that Riot has completely revamped its Bitcoin mining operations, with the miner’s hash rate contribution being around 2.07 exahashes per second (EH / s).
The company expects to have a hashrate of 7.7 EH / s by Q4 2022, which is likely if all 81,146 Antminers are up and running by then.