Riot Platforms Reports Decline in May Bitcoin (BTC) Production, Expands Hash Rate

On Jun 4, 2024

Riot Platforms, Inc. (NASDAQ: RIOT), a prominent player in the Bitcoin (BTC) mining industry, has reported a significant decrease in its Bitcoin production for May 2024. According to the company, only 215 BTC were mined, representing a 43% drop from April 2024 and a 68% decrease compared to May 2023. This decline comes in the wake of the April 2024 Bitcoin halving, which reduced block rewards.

Hash Rate Expansion

Despite the drop in Bitcoin production, Riot has made strides in increasing its hash rate. The company’s total deployed hash rate climbed to 14.7 EH/s by the end of May, up from 12.6 EH/s in April. The Corsicana Facility, Riot’s new mining site, contributed significantly to this increase, adding 3.1 EH/s to the company’s capabilities. Jason Les, CEO of Riot, highlighted the progress at the Corsicana Facility, stating that the first 100 MW building, Building A1, is fully developed and miner deployment is nearly complete.

Operational Challenges and Solutions

Riot’s Rockdale Facility faced operational challenges, including the deinstallation of problematic miner models and the deployment of new MicroBT M60S miners. This led to a temporary 850 PH/s reduction in the facility’s hash rate for May. However, the company expects the deployment of these new miners to accelerate in June. Additionally, a lightning strike at the Corsicana Facility resulted in a three-day operational pause, but systems were assessed and mining resumed without significant long-term impact.

Power and Demand Response Credits

Riot’s unique power strategy yielded substantial benefits, generating approximately $7.3 million in power and demand response credits in May. This strategy, often employed during the summer months, continues to be a competitive advantage in reducing mining costs.

Infrastructure Developments

Riot is advancing the development of its second large-scale facility, the Corsicana Facility. Phase 1 of this development is expected to total 400 MW of mining capacity, with the potential to reach 1 gigawatt upon full completion. In May, the immersion tanks in Building A1 were fully deployed and nearly all miners were energized. Construction of Building A2 was also completed, and miner deployment has commenced. Work on Building B1 is on schedule, with concrete slab pouring in progress and installation of immersion tanks expected to begin in June.

Future Hash Rate Projections

Riot anticipates achieving a total self-mining hash rate capacity of 31 EH/s by the end of 2024. The company has entered into multiple purchase agreements with MicroBT, including an initial order of 33,280 immersion miners for the Corsicana Facility and additional orders bringing the total to 131,340 miners. These miners are expected to add 28 EH/s to Riot’s mining capacity, with full deployment expected by the second half of 2025. Upon completion, Riot projects a total self-mining hash rate capacity of 41 EH/s.

Leadership and Recruitment

In a significant leadership update, Stephen Howell, CEO of ESS Metron, has been appointed as Riot’s Chief Operating Officer. Howell will continue to oversee ESS Metron, Riot’s wholly-owned subsidiary specializing in electrical engineering and manufacturing. Riot is also actively recruiting for various positions to support its expansion and operations.

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