Riot Blockchain's third quarter financial report shows that the average mining cost of Bitcoin has dropped to $5,537.

Bitcoin mining company Riot announced its third-quarter financial report, revealing that it mined 1,106 bitcoins during the third quarter, generating a total revenue of $51.9 million. Riot emphasized that the average mining cost per bitcoin this year has decreased to $5,537 and expects the future hash rate to increase to 36.3 EH/s. Bernstein set its target price for Riot at $15.6.

Riot Company Overview

Riot was founded in 1998 and went public on Nasdaq in early 2003. It is a vertically integrated Bitcoin mining company focused on enhancing the company's ability to mine Bitcoin to support the Bitcoin blockchain. Its main businesses include Bitcoin mining, data center hosting, and providing engineering services to third-party customers. Currently, there are two mining centers in Texas:

• Rockdale: Provides comprehensive Bitcoin mining and data center hosting infrastructure for its institutional-scale customers, with a current capacity of 700 MW
• Corsicana: Riot is expanding its second large-scale Bitcoin mining and data center hosting facility, which is expected to have a capacity of approximately 1 GW upon completion

Riot also offers engineering services, including designing, manufacturing power equipment products for third-party customers, and customizing power infrastructure for the company's Bitcoin mining operations and data center hosting services.

Riot Operational Status

Riot released its third-quarter financial report for 2023,

• This quarter mined a total of 1,106 Bitcoins, bringing the total production for 2023 to 4,996
• Total revenue for the third quarter was $51.9 million, with a significant increase in hash rate capacity
• Strategic power management helped reduce the average cost of Bitcoin mining, with the average mining cost for 2023 reduced to $5,537 per Bitcoin
• At the end of this quarter, Riot had $290 million in cash on hand, along with 7,327 Bitcoins, totaling nearly $500 million in liquidity
• Due to non-cash expenses and stock compensation, RIOT incurred a net loss of $45.3 million this quarter

Future Hash Rate Continues to Grow

Due to severe storms in Texas in December 2022 causing some damage, repairs have been gradually made, with full capacity expected to be restored by the end of the year. In addition, previously deployed mining machines will continue to arrive, with self-mining capacity expected to increase to 16.1 EH/s hash rate capacity by 2025, reaching a total hash rate of 36.3 EH/s.

Continuous Issuance of New Shares for Fundraising, Bernstein Target Price $15.60

Within the nine months ending September 30, 2023, Riot issued a total of 27,492,345 common shares at an average price of $11.81. From September 30, 2023, to November 6, 2023, the company issued an additional 10,196,000 common shares at a weighted average price of $10.12.

In a report issued by investment research firm Bernstein at the end of October, it not only sees potential in the future of Bitcoin but also believes in the returns that holding mining stocks could bring in the next bull market cycle. It set a target price of $15.60 for Riot Platforms RIOT.

Bernstein Report: Bitcoin to Rise to $150,000 by 2025, Bullish on Mining Stocks RIOT, CLSK