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Stocks of Nasdaq-listed Riot fell 4.87% in pre-market trading on Tuesday, after U.S. Bitcoin miner Riot Blockchain on Monday reported weaker revenues in the third quarter of this year as other major miners struggle with liquidity issues.
See related article: World’s largest Bitcoin miner Core Scientific’s stock tumbles amid liquidity crisis
Fast facts
- The decline on Tuesday followed a 0.69% drop on Monday that closed at US$5.75.
- Riot Blockchain booked US$46.3 million in total revenue in the third quarter of 2022, down from US$64.8 million in the same period last year, it said in its latest earnings report released on Monday in the U.S.
- The company’s net loss widened to US$36.6 million in the third quarter this year, as compared to a net loss of US$15.3 million a year ago, according to the report.
- While other major miners, including Core Scientific, have mentioned potential bankruptcy, Riot said it held about US$255 million worth of cash and cash equivalent at the end of September, compared with US$270.5 million at the end of June.
- “Despite rising energy prices, which significantly impacted many Bitcoin miners, Riot was able to leverage our long-term fixed rate power contract to generate significant power credits and in doing so, significantly reduce our operating costs,” said Jason Les, CEO of Riot.
- Riot earned US$13.1 million in power credits in the third quarter, compared with US$2.5 million in the same period in 2021.
See related article: Bitcoin mining difficulty falls 0.2% in latest adjustment