Bitcoin mining firm Riot Blockchain Inc. has claimed losses worth more than $30 million in its Q3 financial report, Most mining firms have suffered as Bitcoin remains in the $20,000 zone.
Riot Blockchain Inc. on Nov. 7 published its Q3 2022 financial results on its official website. Fair to say, the revenue had slumped as compared to the previous year. This comes at a time when Bitcoin mining is no longer profitable.
Many mining companies even considered bankruptcy or shutting down.
Riot Blockchain gets red marks
The said company booked a net loss of $36.6 million or $0.24 a share, per the report. Compared to the same three-month period in 2021, the company recorded $15.3 million, or $0.16 a share.
Overall, the cumulative loss for this quarter remained low due to, ‘$14.4 million in depreciation and amortization, a $5.9 impairment on Bitcoin, and a $17.7 million decrease in the fair value of our power derivative asset, partially offset by $13.1 million in power curtailment credits,’ claims the report.
Meanwhile, revenue slumped from over $60 million last year to $46.3 million, a correction of nearly 25%.
Jason Les, CEO of Riot, regardless of the results, stated:
“Our results this quarter are a strong testament to the benefits of Riot’s vertically-integrated and diversified business model, which is further complemented by our conservative financial approach.”
Further, Les, in a Nov. 8 tweet, highlighted a somewhat optimistic approach amidst the mining turbulence.
Bitcoin mining stocks drop
The stocks of mining companies were taking a solid hit. When writing, Riot shares (RIOT) slid by around 2% as it traded at about $5.75. Indeed a massive fall at the same time last year; it traded at $42.09 on Yahoo Finance (down by >80%).
As BeinCrypto reported, other companies, such as Hut8, are down 73% year-to-date (YTD), while Canaan is down 44%. Other big drops include Bitfarms at 82% and Hive at 77% YTD. The same is the case with the Argo blockchain, which is down by a whopping 90%.
These results don’t come as a total surprise. Given that the Bitcoin network’s difficulty and hash rate reached all-time highs this October. This, coupled with the rising electricity bills in 2022, has contributed severely to the crypto mining industry’s downturn.
With Bitcoin mining not showing profits, more and more mining operators could face a similar fate. Even more so in 2022, wherein Bitcoin wrestled with the $20,000 level.