Bitcoin mining company Riot Blockchain reported revenue rose to a record $34.3 million in the second quarter, up from just $1.9 million in the year-ago quarter. Net income came in at 22 cents per share versus a loss of 31 cents a share in the second quarter of 2020.
- Analysts had been expecting revenues of $32.6 million for the quarter and adjusted earnings per share of one cent.
- Riot shares were rising 2.4% to $36.58 in after-hours trading Monday following the release of the results. They rose over 4% during the day as bitcoin prices rose above $50,000 earlier in the day for the first time in three months. Shares are up almost 117% year to date.
- Riot closed the acquisition of Whinstone in the quarter, helping create one of the largest hosting and mining companies in North America as measured by developed and future capacity.
- Earlier this month, Riot forecast that its new facility in Texas will lift its total hashrate capacity to 7.7 EH/s by the fourth quarter of 2022.
- Recent Securities and Exchange Commission filings revealed that asset management giant BlackRock owned a 6.6% stake in Riot, as well as a 6.7% stake in rival miner Marathon Digital, as of the end of the second quarter. Together, BlackRock's stakes in the two companies amounted to almost $400 million.
UPDATE (August 23, 20:55 UTC): Added information about Whinstone in the third bullet point.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.