Bitcoin mining company Riot Platforms reported a significant increase of 19% in the amount of Bitcoin it mined in 2023, totaling 6,626 BTC. This growth in production can be attributed to the higher average price of Bitcoin in 2023 compared to the previous year’s bear market.
According to a report published by Riot Platforms on February 22nd, the cost of mining a single Bitcoin in 2023 decreased by approximately $3,686 compared to 2022. The report states that the cost to mine a Bitcoin in 2023, after deducting power credits allocated to self-mining, averaged $7,539, a 33% decrease from the previous year’s $11,225.
Furthermore, the average value of Bitcoin in 2023 exceeded that of 2022, resulting in a revenue increase for Riot Platforms. The company generated $280.7 million in revenue in 2023, compared to $259.2 million in the previous year.
The crypto market experienced a severe bear market in 2022, leading to the collapse of several crypto firms, including major exchange FTX. However, Riot Platforms has seen a positive trend in its share price over the past month, with a surge of 47.47%. Although there was a decline of approximately 10.65% in the share price last week, it currently stands at $14.85.
In December 2023, Riot made headlines by acquiring 66,560 mining rigs from manufacturer MicroBT, marking one of the largest expansions of hash rate in the company’s history. This expansion was in preparation for the Bitcoin halving scheduled for April.
Other Bitcoin mining firms also reported varying production results in 2023. Core Scientific produced 19,274 Bitcoin, while CleanSpark experienced a significant surge of 60% compared to 2022, mining over 7,300 Bitcoin during the year.
Marathon Digital mined 12,852 Bitcoin in 2023, including 1,853 Bitcoin in December alone. This represents a 56% increase from November and a remarkable 290% increase compared to December 2022.
In recent news, Riot, together with the Texas Blockchain Council, has filed a lawsuit against the United States Department of Energy, Energy Information Administration, and the Office of Management and Budget. The lawsuit alleges that these entities are demanding invasive data from crypto miners.
In conclusion, Riot Platforms has witnessed substantial growth in Bitcoin production and revenue in 2023, thanks to the higher average price of Bitcoin and a decrease in mining costs. The company has also made strategic acquisitions to expand its mining capabilities. However, it continues to face challenges in the form of regulatory demands.