Riot Reports Record Year with $259.2 Million in Total Revenue and Record Hash Rate Capacity
Riot Platforms, Inc. has reported record-breaking financial results for the full year ended December 31, 2022. The company, an industry leader in Bitcoin mining and data center hosting, generated a total revenue of $259.2 million, representing an increase from $213.2 million in the same period in 2021. This was largely due to higher Bitcoin production and the inclusion of a full year of Data Center Hosting and Engineering revenues.
Despite challenging market conditions, Riot maintained a strong financial position, ending 2022 with approximately $230 million in cash, no long-term debt, and 6,974 Bitcoin, worth approximately $116 million based on year-end Bitcoin prices. Riot also produced 5,554 Bitcoin, as compared to 3,812 during the same twelve-month period in 2021, a 46% increase. Furthermore, the company earned $27.3 million in power credits through support of the ERCOT grid in Texas during several weather-related supply/demand issues in 2022.
Riot CEO, Jason Les, expressed his pleasure in announcing the 2022 results, highlighting the significant growth in hash rate, successful expansion at the Rockdale Facility, and progress on Corsicana Facility development. Riot’s hash rate capacity reached a record high of 9.7 EH/s, and three new buildings were completed at the Rockdale Facility in 2022, while a fourth is expected to be completed in Q1 2023. Development at the Corsicana Facility, where Riot broke ground in mid-2022, is also on track for energization in the fourth quarter of 2023.
Riot realized significant benefits from its unique power strategy in 2022, generating more than $27 million in power credits through voluntary energy curtailment under its low-cost, large-scale, and long-term fixed rate power contracts. These power credits enabled the company to lower its cost of production in 2022, on a non-GAAP basis, to among the lowest in the industry. Riot’s cost to mine Bitcoin for 2022, net of power credits allocated to self-mining, averaged $11,225 per Bitcoin versus $11,939 in 2021, a decrease of 6% year-over-year.
Riot’s net loss was $509.6 million, significantly impacted by non-cash impairment charges totaling $538.6 million, including goodwill impairment of $335.6 million associated with the Whinstone and ESS Metron acquisitions in 2021, impairment of cryptocurrencies held of $147.4 million, and impairment of miners of $55.5 million.
Riot Platforms, Inc. is in a strong position to continue executing on its aggressive growth plans, in 2023 and beyond, due to its industry-leading financial strength.
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