Riot Blockchain, a US-based cryptocurrency miner, generated 740 BTC last month, a 62% increase from January 2022 and a new monthly record for the business.
Bypassing an ATH
Riot generated a record-breaking 740 BTC worth of bitcoin in January despite having problems with their mining fleet. CEO Jason Les said that the Rockdale Facility was damaged by the recent Texas winter storms, which decreased its capability for hash rates.
Building F has been successfully brought back online, restoring 0.6 EH/s of affected hash rate capacity. Repairs have been proceeding in both buildings. Despite challenging weather circumstances, we are grateful for the work made by our team. We are now considering a number of methods to restore the approximately 1.9 EH/s of Building G’s hash rate capacity.
Riot’s objective to attain 12.5 EH/s in total hash rate capacity in Q1, 2023, will undoubtedly be hampered by the severe weather.
Riot took advantage of the recent rise in bitcoin’s price to sell 700 BTC for almost $13.7 million. It possessed 6,978 BTC at the end of January, which is more over $160 million (calculated at current prices).
There are 82,656 miners in its whole fleet, with a 9.3 EH/s hash rate capability.
In addition to the successful outcomes, Riot declared it is growing its staff by adding new individuals.
Major market participants including Coinbase, Bybit, Kraken, and Gemini let some of their staff members go. Core Scientific, Riot’s competitor, also cut back on staff, but it was not enough to stop them from declaring for bankruptcy a few days before Christmas.
The 2022 heat wave and bear market
Riot’s decline last year began in July when it mined just 318 BTC, which was 28% less than the month before. The weather in Texas was unusually hot, with temperatures leaping past 40 degrees, and this was the major cause of the setback (Celsius).
While the produced revenue was $46.3 million, 28% less than the originally expected $54.2 million, it reported a quarterly net loss of more than $36 million.