Riot Blockchain Drops After Missing Q3 Revenue, Earnings Estimates

The bitcoin miner reported a net loss in the quarter of 16 cents per share, while analysts were expecting a gain of 35 cents per share.

Nov 16, 2021 at 2:11 p.m. UTC
Updated Nov 16, 2021 at 3:26 p.m. UTC

Shares of Riot Blockchain (RIOT) were down almost 11% in early trading on Tuesday after the bitcoin miner’s third quarter revenue and earnings missed average analyst estimates, according to FactSet data.

  • The bitcoin miner’s third quarter revenue was $64.8 million, compared to the consensus analyst estimate of $67.1 million. Earnings per share were a net loss of $0.16, while analysts expected a profit of $0.35.
  • The net loss in the quarter was “significantly impacted” by a non-cash stock-based compensation expense of $36 million and a non-cash unrealized loss of $11.2 million on marketable equity securities, the company said in a statement.
  • Riot’s mining revenue margin, or mining revenues net of the cost of those revenues, was 76% in the third quarter versus 47% in the same period last year.
  • The miner said it increased bitcoin production by 482% to a record 1,292 bitcoin during the quarter, compared to 222 bitcoin during the same quarter a year ago. The miner held 3,995 bitcoins as of Oct. 31.
  • Riot had 27,270 miners deployed as of Oct. 31 and additional 11,500 S19J Pro Antminers are in the process of being shipped.
  • Subsequent to Sept. 30, the company also completed its previously announced at-the-market equity offering of $600 million.
  • The stocks of crypto miners, which are most tied to cryptocurrency prices, were falling after both bitcoin and ether prices were down more than 5% on Tuesday.

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Aoyon Ashraf is crypto mining reporter with more than a decade of experience in covering equity markets