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Nasdaq Listed Riot Blockchain Sees Slight Growth in Q1 2020

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 Riot Blockchain, which is a public digital currency mining firm, saw a slight increase in earnings per share (EPS) during the first quarter of 2020. The Bitcoin mining outfit shared its financial results and highlights for the quarter ended on March 31, 2020.

Nasdaq listed Riot Blockchain is making significant progress in the market. In its announcement, the mining company revealed the conclusion of the SEC investigation, and the complete revamp of mining rigs in its Oklahoma mining farm. The firm wrote:

 “As compared to the same period last year, during the quarter ended March 31, 2020, Riot announced increased revenues and decreased SG&A expenses excluding stock-based compensation. As compared to December 31, 2019, the Company has substantially improved its liquidity position and increased total stockholder’s equity.”

Nasdaq listed Riot Blockchain installs next generation Bitmain S19 Antiminers

In its announcement, Riot emphasized the successful stationing of the 4,000 Bitmain S17 Pro Antminers purchased late last year; and the addition of the 2,040 Bitmain S19 Antminer revamped in April 2020.

Following the spread of the COVID-19 pandemic, the BTC mining outfit shifted a substantial amount of its S17 Antiminers; to a mining facility in New York which is run by Coinmint. Riot contemplates the new mining equipment will raise the firm’s current average hash rate by a massive 84%. Riot plans to station the new rigs by Q3 this year. 

Q1 2020 Riot Blockchain financial results 

According to the report, Riot Blockchain launched 281 freshly minted BTC coins during Q1 of 2020. The firm grew its Bitcoin directory by 60%, to 821 BTC between December 31, 2019 and March 31, 2020.

In addition, Riot Blockchain saw boosted business assets on March 31 this year, rising from $9.3 million on December 31, 2019, to $17 million on March 31, 2020. Moreover, the firm reduced its total liabilities by $300,000, to $3.8 million within the same period.

In conclusion, the mining firm reported that total mining income grew by 68% to $2.4 million, in contrast to the $1.4 million made during Q1 of 2019.

Bitcoin Price Needs To Be Higher Than $7000 For Miners To Have a Profitable Post Halving

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It has only been 3 months into 2020 and Bitcoin has already witnessed a turbulent time in the digital asset space. However, a major event which is yet to commence in 2020 is the Bitcoin halving.

Bitcoin halving is one of the mechanisms in the BTC code, which is irreversible and inevitable. Bitcoin’s anonymous developer, Satoshi Nakamoto included a slash in supply in order to cope up with inflation and over the past two halvings in 2012 and 2016, miners have managed to remain profitable after the reduction of block rewards.

However, the global financial market is currently undergoing a tumultuous meltdown amidst the impact of COVID-19, and Bitcoin’s current valuation was raising serious concerns for the miners.

Miners Profitability after Bitcoin Halving

Gate.io recent’s research on the Influences of Bitcoin halving indicated that historically, a halving event has triggered a price rise after a few months post halving and the hash rate has improved as well.

The major concern was Bitcoin has never experienced a halving amidst a global financial crisis. Although popularly deemed as an uncorrelated asset, BTC’s increased correlation with S&P 500 rang bearish alarms across the industry, raising questions about Bitcoin’s valuation post halving.

In light of the scenario, a study was conducted to understand the price range of BTC above which miners will remain profitable posting halving.

The report explained that when BTC price drops below the cost or overall maintenance of a mining rig, it can no longer make profits from the block rewards.

The term used by the research is ‘shut-down price’ for miners which are self-explanatory with regards to Bitcoin’s value.

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Analyzing the above charts and mining rigs available in the market, it can be identified that Bitcoin has to consolidate at least above $7234 post halving for miners to be profitable. The AntminerS19 Pro indicated the least shut-down price, but that particular rig is yet to be available in the market.

If we run an average shut-down price on all the 25 mining rigs, the average shut down price for Bitcoin came up to a whopping $25,385.

Additionally, the report stated that the possibility of miners switching their mining rigs would increase since they would need to be cost-effective in order to incur profit from BTC mining.