fix (Nov 8 01:02 UTC): An earlier version of this article incorrectly stated that Riot’s Consensus Analysts estimate adjusted net income per share to be $1 instead of $0.01. rice field.
Bitcoin mining heavyweight Riot Blockchain (RIOT) has disappointed the average analyst in Q3.
According to FactSet, the miner made a profit of $46.3 million, below the average estimate of $56.3 million and a net loss of $0.24.
Riot Earnings Were Lower Than Last Quarter $72.9 million, lower than the same period last year when the company reported $64.8 million. Miners attribute this to a drop in the price of Bitcoin and a reduction in activity to meet a surge in energy demand in Texas. press release on monday.
RIOT shares fell about 1% in after-hours trading on the Nasdaq following the earnings release.
However, miner cash reserves have not changed much compared to the previous quarter, despite other major miners saying they were nearing bankruptcy. At the end of Q2 he had $270.5 million in cash and he had 6,653 BTC, while at the end of Q3 Riot had $255 million in cash and he had 6,766 BTC.
Riot is one of many miners involved in the Texas curtailment process, turning off machines when demand surges across the grid so they can later be used with local grid operators. Used in exchange for credits. Through the quarter, Riot made him $13.1 million on such credits. of which $9.5 million occurred in JulyParticipation in this so-called demand response program saw bitcoin production drop by 28% during the month.
miners hosting revenueThat means the fees we collect for providing infrastructure to other companies’ machines also decreased from $8.4 million to $9.8 million quarter-over-quarter.
Riot’s mining margin has dropped significantly, Like other minersIn the second quarter of this year, mining revenue in excess of segment revenue costs was $28.2 million, representing 61% of mining revenue. Revenue for the third quarter was $7.4 million, representing approximately 33% of total mining revenue.