Riot Platforms Reports Worse-Than-Expected Q2 Results: Details
Portfolio Pulse from Erica Kollmann
Riot Platforms, Inc. (NASDAQ:RIOT) reported worse-than-expected Q2 results, with a significant miss on both earnings and revenue estimates. The company faced a 52% decrease in Bitcoin production and a substantial increase in mining costs due to the Bitcoin block subsidy 'halving' event and increased network difficulty. Despite these challenges, Riot reported higher Bitcoin mining revenue compared to the same period last year, driven by higher average Bitcoin prices and increased operational hash rate.
July 31, 2024 | 9:28 pm
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Riot Platforms reported Q2 losses of 32 cents per share, missing estimates by 128.57%. Revenue also missed estimates, coming in at $70.018 million. Bitcoin production decreased by 52%, and mining costs increased significantly due to the Bitcoin block subsidy 'halving' event and increased network difficulty.
The significant miss on both earnings and revenue estimates, coupled with a substantial decrease in Bitcoin production and increased mining costs, is likely to negatively impact Riot's stock price in the short term. The after-hours price drop of 1.74% reflects investor concerns.
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