Bitcoin miner Riot Blockchain performed less than analysts expected in the third quarter.
The miner managed to generate $46.3 million in revenue from July to September 2022. While analysts had assumed $56.3 million in revenue. According to FactSet, RIOT’s net loss per share came to 0.24 US cents.
Shares of @RiotBlockchain ⬇️dropped after the #Bitcoin mining company's Q3 earnings report 📝revealed $46.3mln in revenue compared to $64.8mln in the same period last year. https://t.co/cYInjzpKTN
— SlamX (@SlamXio) November 8, 2022
In the second quarter, revenue was still $72.9 million, and in the third quarter of 2021, revenue was also much higher at $64.8 million.
Shutting down operations
One explanation is that the mining company had to temporarily shut down operations in Texas due to an overloaded power grid. Also, logically, the lower bitcoin exchange rate is a reason for the disappointing results.
What does the company have left in bitcoin on its company balance sheet? Riot Blockchain still has $255 million in cash and 6,766 bitcoin at the end of quarter three. In the previous quarter, this was $270.5 million and 6,653 bitcoin respectively.
Riot is one of the companies hit by the temporary shutdown of operations in the US state of Texas. Machinery had to go out because the regional power grid became overloaded.
Bitcoin production in the month of July fell by 28% because Riot also participated in the programme to balance the grid by sometimes shutting down machines when there was too much regional demand for electricity.
So Riot cannot escape the malaise affecting several mining companies. Iris Energy, for instance, is also in financial trouble.
