The company reportedly calculated its revenue by mining Bitcoins at an average price of $46,600.
According to the company, quarterly revenue generated from BTC mining operations reached $31.5 million, compared to about $1.9 million recorded in the same quarter of fiscal 2020.
Riot Blockchain, which trades publicly on Nasdaq, noted in its financial report that the increase in mining revenue contributed to the company’s overall profitability in the latest quarter. According to the results, net income during the second quarter of 2021 jumped to $19.3 million, a major turnaround for the company after the second quarter of 2020 saw it make a $10.6 million loss.
Thanks to the increase in revenue, the company’s mining revenue margin also increased, with the quarterly numbers ending June 30, 2021 representing about 70%. In comparison, Riot posted margins of about 25% in the three months ending June 30, 2020.
Jason Les, CEO of Riot Blockchain, said in a statement that the company’s impressive financial results so far are directly due to their “ absolute focus on Bitcoin mining ” and the expansion of mining operations following the acquisition of U.S. mining company Whinstone.
According to Jason Les, the potential for future growth has increased since the expansion, and the deal has ” significantly de-risked ” Riot’s operations to give rise to new opportunities.
Riot Blockchain has also increased its Bitcoin holdings, with approximately 2,687 BTC held in the company’s reserves as of July 31, 2021.
At the same time, Bitcoin mining returns increased by 38% in Q2, reaching 675 Bitcoins in those three months, compared to about 491 Bitcoins generated in Q1.
The report also notes that Riot has significantly overhauled its Bitcoin mining operations, with the miner’s hashrate contribution estimated at around 2.07 exahashes per second (EH/s).
The company expects to reach a hashrate of 7.7 EH/s by Q4 2022, which will be likely if all of its 81,146 Antminers come online by then.