Riot Platforms, one of the largest Bitcoin mining companies in North America, has released its financial report for the full year that ended December 31st, 2022. The report showcases Riot’s impressive growth and financial strength, but it also includes some concerning news.
The company’s financial report showed that it had $230 million in cash, no long-term debt, and 6,974 Bitcoin by the end of 2022. The impressive figures are a testament to Riot’s ability to maintain its strong financial position despite challenging market conditions.
Riot Platforms declared that it had boosted its hash rate capacity threefold, resulting in multiple monthly production records, and culminated the year with an unprecedented hash rate capacity of 9.7 EH/s.
Furthermore, its expansion initiatives are advancing smoothly, and the Corsicana Facility’s construction is on schedule to be powered on by Q4 2023.
Bitcoin Miner Faces Delay In Filing Financial Statements
Despite the positive news, Riot reported a net loss of $509.6 million for the same period. The company attributed the loss to an accounting error in calculating the impairment of its Bitcoin holdings. Riot Platforms said it would delay filing its financial statements with the SEC and would file and amend the relevant data within 15 days.
The accounting error also led to the restatement of certain financial statements included in prior reports in accordance with FASB ASC Topic 250, Accounting Changes and Error Corrections.
The error was discovered during the preparation of the 2022 Annual Report. Riot said the Audit Committee of the Board of Directors determined that the previously issued financial statements contained material errors and should not be relied upon.
Despite the setback, Riot’s total revenue increased by $46 million from $213.2 million in 2021 to $259.2 million in 2022. The company also produced 5,554 Bitcoins, a 46% increase from 3,812 Bitcoins during the same twelve-month period in 2021. Riot’s cost to mine Bitcoin for 2022, net of power credits allocated to self-mining, averaged $11,225 per Bitcoin, a decrease of 6% year-over-year.
However, with its exceptional financial stability, Riot is well-positioned to pursue its ambitious expansion strategies in 2023 and beyond. Additionally, with three new buildings completed at its Rockdale Facility and development progressing at its Corsicana Facility, Riot is poised for continued success.
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