Riot Platform, previously known as Riot Blockchain, is a publicly traded company that focuses on cryptocurrency mining and blockchain technology, particularly in the Bitcoin space. It also offers data center hosting services for cryptocurrency mining equipment to institutional clients through its subsidiary, Whinstone US, Inc. With one of the largest Bitcoin mining operations in North America, Riot Platform currently has a hash rate capacity of 4.6 EH/s and uses approximately 136 MW of energy.
While Riot Platform primarily operates as a Bitcoin mining company, it also invests in and supports other cryptocurrency and blockchain businesses. The decision to drop “Blockchain” from its name came after the company’s shares plummeted by 85% during the crypto market downturn.
Founded in October 2017, Riot Platform is headquartered in Castle Rock, Colorado. It operates a large-scale bitcoin mining and hosting facility in central Texas. The company initially started as a biological sciences technology firm called Bioptix but shifted its focus to blockchain and changed its name to Riot Platform. Its shares are listed on the Nasdaq.
Riot Platform is expanding and upgrading its mining operations by developing industrial-scale infrastructure and acquiring the latest generation of mining equipment. It currently operates a 750 MW facility in Rockdale, Texas, which is the largest Bitcoin mining and hosting facility in North America. The company also has plans to expand its capacity by an additional 400 MW in Corsicana, Texas, which could power more than 200,000 homes. By the first quarter of 2023, Riot Platform aims to increase its hash rate capacity to 12.6 EH/s with the delivery and deployment of more miners.
Bitcoin mining involves verifying and adding new transactions to the blockchain by solving complex mathematical equations. The hash rate represents the number of calculations a miner can perform per second, and a higher hash rate increases the chances of earning Bitcoin rewards. Riot Platform focuses on increasing its hash rate and infrastructure capacity by acquiring the latest mining equipment to improve efficiency and performance.
Riot Platform has been expanding its mining infrastructure and equipment significantly in recent years, positioning itself as one of the leading cryptocurrency miners. By 2023, the company expects to have a total self-mining hash rate of 12.6 EH/s, powered by approximately 116,150 state-of-the-art S19 series miners. This massive deployment will require around 370 MW of energy. Riot is also utilizing immersion-cooling technology to enhance productivity. Additionally, the company provides 200 MW of hosting capacity for institutional clients. It will be intriguing to see how Riot’s ambitious plans unfold in the coming months.
Whinstone US, Inc., a wholly owned subsidiary of Riot Platform, offers data center hosting services to institutional clients. Located in Rockdale, Texas, Whinstone’s facility provides high-performance mining capabilities and can host over 10,000 miners. The company is currently undertaking an expansion project to double the facility’s Bitcoin mining capacity. The project includes new buildings and a total build-up area of 240,000 square feet, adding 400 MW of power to the existing 750 MW goal. The expansion aligns with the shipment of additional miners to maximize the facility’s capacity and establish it as a leading name in Bitcoin mining.
Whinstone is committed to providing a secure mining environment for its clients, offering operational support, maintenance, and repair services. The company has also implemented an advanced energy management system that reduces electricity costs while maintaining optimal temperatures, ensuring efficient and cost-effective hosting services.
Riot Platform’s next significant move in the Bitcoin mining sector is its plan for a large-scale, 1-gigawatt development in Navarro County, Texas. The project has begun with the construction of an initial 400 MW capacity on a 265-acre site, with immersion-cooled mining and hosting operations commencing by July 2023. The expansion includes land acquisition, preparation, and ancillary buildings necessary for completion. The estimated investment for the project is $333 million, with completion expected in the first quarter of 2024. Once completed, the expanded capacity will reach an astounding 1 GW, thanks to the nearby 345 kV Navarro switch. This additional 600 MW will greatly benefit Riot Platform’s business.
In terms of financial and operational highlights in 2022, Riot Platform reported a total revenue of $259.2 million, driven by increased Bitcoin production and a full year of data center hosting and engineering revenues. The company earned $27.3 million in power credits through the support of the ERCOT grid in Texas, equivalent to 1,815 Bitcoin. They produced 5,554 Bitcoin, a 46% increase compared to the previous year. Bitcoin mining revenue reached $156.9 million, while data center hosting revenue reached $36.9 million. Engineering revenue amounted to $65.3 million, primarily due to the acquisition of ESS Metron in December 2021. However, the company reported a net loss of $509.6 million, largely influenced by non-cash impairment charges of $538.6 million, including a goodwill impairment of $335.6 million associated with the Whinstone and ESS Metron acquisitions in 2021. Riot Platform maintained a working capital of $321.8 million, including $230.3 million in cash and 6,974 Bitcoin produced through its self-mining operations. They also improved their mining revenue margin by ending the hosting agreement at Coin Mint LLC’s Massena, NY facility and moving all miners to the Rockdale Facility, reducing power costs and eliminating third-party hosting fees. The cost to mine Bitcoin for Riot in 2022 averaged $11,225 per Bitcoin, a 6% decrease from the previous year. The company increased its hash rate capacity by 213% to 9.7 EH/s as of December 31, 2022, compared to 3.1 EH/s as of December 31, 2021.
For those interested in buying Riot Platform stocks, they can choose a stock trading platform, open an account, fund it, and search for the stock name “RIOT” to make the purchase.
In conclusion, Riot Platform has rapidly become one of the largest Bitcoin mining companies in the United States. The company’s focus on industrial-scale infrastructure development and investments in large-scale mining operations across the country demonstrate its commitment to supporting the Bitcoin blockchain. With its ambitious expansion plans, such as the CORSICANA project in Texas, Riot Platform aims to solidify its position in the industry. The company’s financial and operational highlights in 2022 reflect its growth and potential for further success. Investors and stakeholders should closely monitor Riot Platform as it strives for industry leadership in Bitcoin mining.
