Riot Mined an All-Time High of 740 BTC in January

The US-based cryptocurrency miner Riot Blockchain produced 740 BTC last month, a 62% increase compared to January 2022 and a new monthly all-time high for the company.

The positive start of the year contrasts the disappointing production levels and shrinking revenue towards the end of 2022.

Hitting an ATH

Despite experiencing issues with its mining fleet, Riot produced a record amount of bitcoin in January – 740 BTC. CEO Jason Les revealed that the recent winter storms in Texas damaged the Rockdale Facility, reducing the hash rate capacity. 

“Repairs have been ongoing in both buildings, and we have successfully brought Building F back online, representing 0.6 EH/s of impacted hash rate capacity.

We are thankful for our team’s progress, despite difficult weather conditions, and are evaluating several options to bring online the approximately 1.9 EH/s of hash rate capacity still affected in Building G,” he assured.

The extreme weather conditions will probably hinder Riot’s goal of reaching 12.5 EH/s in total hash rate capacity in Q1, 2023. 

Riot used bitcoin’s price surge during the past few weeks as an opportunity to sell 700 BTC for around $13.7 million. As of the end of January, it held 6,978 BTC, equalling over $160 million (calculated at current prices).

Its total fleet consists of 82,656 miners, with a hash rate capacity of 9.3 EH/s. Over 17,000 machines are currently switched off as a result of the blizzard. 

In addition to the positive results, Riot announced it is expanding its team with new members. This contrasts with the ongoing dismissal spree reigning in the sector.

Major industry players, including Coinbase, Bybit, Kraken, and Gemini, laid off a chunk of their employees. Riot’s rival – Core Scientific – also reduced its headcount, but that was not enough to prevent the filing for bankruptcy protection a few days before Christmas.

The Bear Market and the Heat Wave in 2022

Riot’s downfall last year started in July when it mined only 318 BTC, 28% less than the previous month. The main factor for the setback was the extremely hot weather in Texas, with temperatures surging above 40 degrees (Celsius).

Riot and many other miners temporarily halted activities to prevent severe problems for the local power grid and a potential blackout. 

The rising electricity costs and the cryptocurrency market crash in Q3 2022 prompted further issues for the firm. It posted a quarterly net loss of over $36 million, while the generated revenue was $46.3 million, 28% less than the previously estimated $54.2 million.