Bitcoin mining specialist Riot Platforms saw its production increase by 19% in 2023, mining 6,626 BTC. These favorable results were mainly attributed to the acquisition of 66,560 units of hashing hardware from microBT in December 2023, which constituted one of the firm's largest historical power expansions prior to the reward reduction event, scheduled for April 2024.
Other bitcoin mining companies also recorded varied performances in 2023. For example, Core Scientific produced 19,274 BTC while CleanSpark saw a 60% increase, mining around 7,300 BTC during the year.
Financial consequences and future prospects
In 2023, Riot Platforms generated total revenue of 280.7 million USD, compared with 259.2 million USD in 2022. The average decrease in the cost of mining a bitcoin at Riot was estimated at 3.686 USD per bitcoin, a decrease of 33% compared to 2022.
To prepare the company for the reward reduction event, Riot Platforms has ordered an additional 66,560 units of microBT hashing hardware, which should contribute to a total self-managed hashing capacity of 38 EH/s when fully operational in 2025.
Impact on the Competitiveness of the Bitcoin Mining Market
Thanks to its unique power strategy and solid financial position, Riot Platforms ranks among the largest holders of bitcoins. The company also relies on its ability to acquire bitcoin at a significant discount to the current market price, thanks to its high liquidity.
This expansion of Riot Platforms' hashing capacity strengthens its competitiveness against other bitcoin miners, and helps maintain the security and reliability of the Bitcoin network while supporting global demand for the cryptocurrency.
