Riot Blockchain, the largest Bitcoin mining operation in the world, reported a net loss of $36.6 million in its quarterly revenue report. The Colorado-based firm’s sales of $46.3 million was down 28% from the $54.2 million that had been anticipated.
Many Bitcoin miners have been hit hard by the ever-increasing energy cost rates. However, according to Riot’s chief executive officer, the company was able to use its long-term fixed-rate power contract to its advantage, resulting in huge power credits and lower operational expenses.
Lower Bitcoin output from major restriction operations, as well as a fall in the market price of the crypto asset, cited as the cause of the big loss and low income.
Riot in Texas
It is important to note that in July this year, Riot shut down machines during heat waves to conserve power as requested by Electric Reliability Council of Texas (ERCOT) and joined other miners in Texas. As a result, Riot was able to receive $13.1 million in power curtailment credits during the third quarter and received $9.5 million as a reward for its power account, of which came only in the month of July.
Previously, Riot sold 250 BTC and made a net profit of about $7.5 million as reported by TheCoinRise. Due to this, the company’s bitcoin production for that month fell 28%. The company’s revenue declined to $8.4 million in the third quarter from $11.2 million in the same period a year ago as a result of lower billings from customers owing to curtailment, data center hosting revenue.
Some mining firms are having trouble keeping up with the market. However, Riot’s US Whinstone facility has become the largest Bitcoin mining business in North America, even after the fact that mining profits for the company as a whole have suffered considerable damage.