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Bitcoin miner Riot Platforms has reported its first quarterly loss since 2022, highlighting the challenges posed by April's Bitcoin halving event. The company announced a net loss of $84.4 million in Q2 2024, doubling the $0.16 loss per share forecasted by investment firm Zacks, which is significantly higher than the projected loss of $0.32 per share. This marks the company's first quarterly loss since Q4 2022, according to <a href="https://crypto.news/bitcoin-and-btc-mining-pose-promising-future-analyst/" rel="noopener noreferrer nofollow">Crypto</a>.
Despite a 340% increase in the cost of mining a single Bitcoin, Riot managed to boost its Bitcoin mining revenue by 12% due to a near 100% rise in <a href="https://ultramining.com/news/en/impending-bitcoin-halving-may-trigger-major-hashrate-decline-say-experts/" rel="noopener noreferrer nofollow">Bitcoin's price</a> from June 30, 2023, to June 30, 2024. However, the company's overall revenue fell by 8.75% year-on-year to $70 million, primarily due to a decline in engineering revenues, partially offset by gains in Bitcoin mining.
&nbsp;Increasing Costs and Hashrate Expansion
The increased loss was largely due to a significant rise in selling, general, and administrative expenses, which totaled $61.2 million, a $41.4 million increase from Q2 2023. Additionally, the cost to mine a Bitcoin soared from $5,734 to $25,327, driven by the halving and a 68% rise in the Bitcoin network <a href="https://ultramining.com/news/en/bitcoin-miners-set-for-a-tough-ride-as-2024-halving-nears-jp-morgan/" rel="noopener noreferrer nofollow">hash rate</a>.
In response to these challenges, Riot nearly doubled its installed hash rate to 22 exahashes per second in Q2 and aims to reach 36 EH/s by the end of 2024. Despite these efforts, the company’s Bitcoin mining production fell by 52% to 844 BTC in Q2, which Riot attributes to the impact of the halving event.
&nbsp;Acquisition Strategy and Market Position
Riot has been intensifying its acquisition strategy against rival Bitfarms. In a filing with the United States securities regulator on July 31, Riot disclosed its purchase of approximately 10 million additional shares this month. Previously, Riot attempted a $950 million buyout of Bitfarms in mid-June but later admitted defeat, stating that engagement with Bitfarms' board was "not possible."
As a result, Riot's (RIOT) share price dropped by 1.18% in after-hours trading following the Q2 report release, according to Google Finance data. Riot is currently down nearly 33.8% for 2024, while competitor CleanSpark (CLSK) has seen a 47% increase, surpassing Riot as the second-largest Bitcoin miner by market cap.
&nbsp;Market Dynamics and Future Prospects
Riot's challenges are not isolated. The Bitcoin mining industry faces pressure from increasing costs and competition. However, the recent increase in Bitcoin prices and the company's expanded hash rate capabilities may provide opportunities for future growth. As the mining sector adapts to post-halving dynamics, companies like Riot are focusing on efficiency and strategic acquisitions to maintain their market position.

Riot Platforms Struggles Post-Halving: Reports Double Expected Q2 Loss

Ultramining_Eng

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