Riot Blockchain reported an increase in revenue in the third quarter after mining 222 bitcoins during the three months
Riot Blockchain, a publicly traded bitcoin mining company, revealed an increase in revenues during the previous quarter. The company released its earnings yesterday from July to September.
According to its earnings report, Riot Blockchain generated $2.4 million in mining revenues during the third quarter of the year. This represents an increase of 42% over the same period last year. The increase in the company’s hash power, combined with the 15% increase in Bitcoin’s price during the third quarter, were the main reasons behind Riot Blockchain’s revenue increase.
Although its mining capacity has been reduced from the previous quarter (QoQ), it has increased on an annual basis (YoY). In the second quarter of 2020, Riot Blockchain extracted 227 bitcoins. However, the figure fell to 222 Bitcoins during the last quarter. Despite the quarterly drop, the 222 bitcoins extracted by the company are 41% higher than in the same quarter of last year.
Last year’s increase in Bitcoin mining capacity Bitcoin Up may be due to its decisions to focus exclusively on Bitcoin mining. Previously, Riot Blockchain also mined Litecoin and Bitcoin Cash in addition to Bitcoin.
In addition, Riot Blockchain has also increased its mining capacity in the last three months. Currently, the company’s mining capacity is 556 Peta hash per second (PH/s), which is in line with its expectations. The current hash output is 450% higher than the 101 PH/s recorded during the third quarter of 2019.
Riot to expand mining operations
The company plans to expand its mining operations. According to the profit report, Riot is acquiring new Bitmain machines. Riot said, „As previously reported, the company has recently entered into four additional purchase contracts with Bitmain for the acquisition of 16,600 models (110 TH/s) S19-Pro Antminers for an aggregate purchase price of $37.2 million, payable in instalments. The company expects delivery of the first 3,500 of these new miners in the fourth quarter of 2020, with the remaining 13,100 miners to be delivered in monthly instalments from the first half of 2021“.
Riot expects the incremental delivery and deployment of its new 16,600 machines by the end of the second quarter of next year.
Riot Blockchain and other mining companies have benefited from the boom in the cryptomino market this year. Bitcoin has risen 114% so far this year, with leading cryptomoeda now trading above $15,000.