Bitcoin Mining Major Riot Blockchain Misses Analyst Estimates for Q3 Earnings

Riot said its revenues declined as it powered down its Texas operations amid surging electricity demand.

AccessTimeIconNov 7, 2022 at 11:52 p.m. UTC
Updated May 9, 2023 at 4:01 a.m. UTC

CORRECTION (Nov. 8, 01:02 UTC): A previous version of this story incorrectly stated that Riot's consensus analyst estimate was for adjusted net earnings of $1 per share, instead of 1 cent.

Bitcoin mining heavyweight Riot Blockchain (RIOT) disappointed average analysts' expectations in its third quarter.

  • SEC's Gensler Was 'Consistent' Despite Being 'Fried Like a Chicken' Before the Senate: Kevin O'Leary
    SEC's Gensler Was 'Consistent' Despite Being 'Fried Like a Chicken' Before the Senate: Kevin O'Leary
  • Bitcion Mining Is 'Real Estate' Play: Kevin O'Leary
    Bitcion Mining Is 'Real Estate' Play: Kevin O'Leary
  • Kevin O'Leary on Institutional Demand for Spot ETH ETFs
    Kevin O'Leary on Institutional Demand for Spot ETH ETFs
  • What's Kevin O'Leary's Best Investment Ever?
    What's Kevin O'Leary's Best Investment Ever?
  • The miner generated $46.3 million in revenue, lower than the average estimate of $56.3 million, bringing net loss to 24 cents, compared to a consensus estimate of adjusted net earnings per share of 1 cent according to FactSet.

    Riot's revenue were lower than the previous quarter's $72.9 million, and lower than for the same period last year, when the firm reported $64.8 million. The miner attributed the decrease to the declining price of bitcoin and to its curtailing of activities in response to surging energy demand in Texas, according to a press release on Monday.

    RIOT's share price was down about 1% in after-hours trading on the Nasdaq, following the release of its earnings report.

    The miners cash reserves, however, didn't move much compared to the previous quarter, even as other major miners are saying that they are close to bankruptcy. Riot had $255 million of cash on hand and 6,766 BTC at the end of the third quarter, compared to $270.5 million in cash and 6,653 BTC at the end of the second quarte.

    Riot is one of many miners participating in curtailment processes in Texas, under which they power off their machines when demand surges across the electrical grid in exchange for credits they can use later with the local grid operator. Riot earned $13.1 million in such credits throughout the quarter, $9.5 million of which came in July. Its bitcoin production for that month was down 28% as it participated in this so-called demand response program.

    The miners' hosting revenue, meaning fees it collects for providing infrastructure to other companies' machines, also decreased quarter-on-quarter from $8.4 million to $9.8 million.

    Riot's mining margins have dropped significantly, similar to other miners. In the second quarter of this year, mining revenue in excess of cost of revenue for the segment was $28.2 million, or 61% of revenue from mining. In the third quarter, it was $7.4 million, about 33% of total mining revenue.


    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Eliza Gkritsi

    Eliza Gkritsi is a CoinDesk contributor focused on the intersection of crypto and AI.