Bitcoin Mining Firm Riot Blockchain Reports $36.6M Quarterly Loss

• Riot participated in a curtailment procedure in Texas.
• Many Bitcoin miners have been hit hard by the ever-increasing cost of electricity.

Riot Blockchain, a major Bitcoin mining firm, reported a $36.6 million loss. The Colorado firm’s sales of $46.3M were down 28% from the $54.2M projection. Lower Bitcoin output from major curtailment efforts linked with the company’s power plan, as well as a fall in the market price of the crypto asset, were cited as the cause of the wider loss and low income.

Many Bitcoin miners have been hit hard by the ever-increasing cost of electricity. However, according to Riot’s chief executive officer, the firm was able to use its long-term fixed-rate power contract to its advantage, resulting in huge power credits and lower operational expenses.

Struggle Continues For Miners

Riot participated in a curtailment procedure in Texas, when miners voluntarily turned down their equipment to avoid adding to the state’s peak demand for electricity. For its efforts, Riot received $13.1 million in power curtailment credits during the third quarter, $9.5 million of which was received in July alone. The company’s bitcoin output that month fell by 28% as a result of the increased competition.

Using the market-determined spot price, Riot was able to sell electricity back to the Electric Reliability Council of Texas and earn a profit. The company’s revenue declined from $11.2 million to $8.4 million in the third quarter as a consequence of lower billings from customers owing to curtailment, data center hosting income, or fees paid for giving infrastructure to other businesses’ machines.

Several mining firms have been having trouble keeping up with the market. It’s no secret that Riot’s mining margins have taken a beating with the rest of the industry, but the company’s US Whinstone plant has become the biggest Bitcoin mining operation in North America, despite this.