Riot Platforms reported severe losses in the third quarter due to rising costs and unrealized investment losses, as it lowered its hash rate targets for 2024 and beyond. Riot produced 1,104 BTC this quarter, basically flat compared to the same period last year (1,106 BTC). The company's output decreased by 52% year-over-year in the previous quarter.
As of September 30, the company reported total revenue of $84.8 million, of which $67.5 million came from Bitcoin mining. The gross profit from Bitcoin mining (excluding depreciation) was $28.4 million, with a margin of 42%, a significant drop from 181% in the same period last year. The increase in power, labor, and insurance costs contributed to this difference.
The company reported a net loss of $154.4 million, or $0.54 per share, compared to a net loss of $84.4 million in the second quarter (or $0.32 per share), and a loss of $0.44 per share in the same period last year. This was also significantly below the expected loss of $0.18 per share.
This larger loss includes an unrealized loss of $38 million in available-for-sale securities, $30.6 million in non-cash stock compensation, and $60 million in depreciation and amortization expenses.
The non-GAAP adjusted EBITDA loss for the quarter was $3.6 million, slightly higher than the $3.1 million loss in the same period last year. (The Block) #ETH
