Bitcoin miners Marathon, Riot, CleanSpark increase BTC output in September

October 5, 2023 Coin Telegraph

Marathon Digital, in particular, produced 1,242 Bitcoin in September, which accounted for a record 4.3% share of Bitcoin miner rewards.

Bitcoin miners Marathon Digital, Riot Platforms, and CleanSpark recorded strong Bitcoin production increases in September, leading to a small boost in share prices on Oct. 4.

The firm’s balance sheets also strengthened despite Bitcoin’s price (BTC) recording another month of sideways movement — hovering between the $25,100 and $28,500 mark.

Marathon's Bitcoin production rises 245%

Bitcoin mining firm Marathon Digital produced a total of 1,242 BTC in September — a 16% increase from August and a massive 245% increase from September 2022.

The huge spike in BTC production came from a 508% increase in the firm’s installed hashrate from 3.8 exahashes per second (EH/s) in September 2022 to 23.1 EH/s, according to Marathon’s September results.

Marathon Digital Holdings’ September #Bitcoin Production Update is here:

- Increased Monthly Average Operational Hash Rate 20%
- Produced 1,242 BTC in September 2023 and 8,610 BTC Year-To-Date
- Record Monthly Share of Miner Rewards at 4.3%
- Combined Unrestricted Cash and…
— Marathon Digital Holdings (NASDAQ: MARA) (@MarathonDH) October 4, 2023

In the Oct. 4 statement, Marathon’s CEO Fred Thiel said the firm was pleased to reach its goal of 23 exahashes on an installed basis. The United States-based firm says it’s now on the lookout for new mining locations offering low-cost renewable energy:

“We are evaluating multiple opportunities for our next 5 exahashes of hash rate capacity including international locations with low-cost renewable energy.”

Marathon says it has now produced 8,610 BTC year-to-date in 2023. The firm's balance sheet shows 13,726 unrestricted BTC and $101 million in unrestricted cash and cash equivalents on its balance sheet — totaling $471.2 million.

The firm’s share price increased 3.29% to $7.54 on Oct. 4, according to Google Finance.

Riot Platforms ups BTC production too

Meanwhile, Bitcoin miner Riot Platforms increased its BTC production by 9% month-on-month, producing 362 BTC in September while "strategically curtailing mining operations."

The firm is in a long-term contract whereby it sells pre-purchased power to its utility provider at market-driven spot prices in exchange for power curtailment credits.

Riot Produces 362 #Bitcoin in September 2023 While Continuing to Execute Power Strategy.

Read the full press release here: https://t.co/8v798bXwLg
— Riot Platforms, Inc. (@RiotPlatforms) October 4, 2023

Riot Platforms CEO Jason Les said the contract has continued to provide a strong revenue source for the firm:

“By strategically curtailing mining operations, we also received $11.0 million in Power Credits pursuant to our long-term power contracts with our utility provider, and $2.5 million in Demand Response Credits from participating in ERCOT’s ancillary services program.”

The results show that Riot earned more from power curtailment credits than the net proceeds of its Bitcoin sales in August and September.

Meanwhile, Les said Riot’s total self-mining hash rate capacity is currently at 12.5 EH/s, and the firm expects to bolster that figure to 20.1 EH/s once the firm installs another 33,000 next-generation Bitcoin miners in mid-2024.

Riot’s share price increased 3.25% to $9.06 on Oct. 4, according to data from Google Finance.

CleanSpark records its ‘best quarter’ and ‘best fiscal year ever’

Bitcoin miner CleanSpark produced 643 BTC in September and 6,903 BTC during its fiscal year from Oct. 1, 2022 to Sept. 30, 2023 — making it the company’s best performance to date, according to CleanSpark’s CEO and President Zach Bradford.

“We had our best quarter and best fiscal year ever," Bradford said in an Oct. 3 statement.

We had our best quarter and best fiscal year ever. Our efficiency is up, our energy costs are among the best in the industry, and our facilities are running at max capacity. I'm especially proud of our teams and leaders who, day in and day out, demonstrate grit@CleanSpark_Inc… https://t.co/61LGL4kAKL
— Zach Bradford (@ZachKBradford) October 3, 2023

Bradford cited increased efficiency, low energy costs and its facilities running at max capacity as three of the main drivers behind the firm’s record results.

CleanSpark’s share price increased 4.61% to $3.63 on Oct. 4, according to Google Finance.

Bit Digital, which also released results on Oct. 4, was one of a few firms whose Bitcoin production fell in September — recording a 7% fall to 130.2 BTC.

In an Oct. 4 statement, the firm attributed the fall to approximately 600 petahashes (per second) of miners dropping offline due to a power utility mandated maintenance outage on Sept. 26.

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Bitcoin miner Riot Platforms trims Q2 loss to $27.7M

August 9, 2023 Coin Telegraph

bitcoin miner

The firm managed to narrow net loss in the quarter as it ramped up Bitcoin production.

Colorado-based Bitcoin mining firm Riot Platforms narrowed its second quarter net loss to $27.7 million as it ramped up its Bitcoin production and reached record hash rate capacity.

The crypto miner posted total revenue of $76.7 million — up 5.2% from Q2 2022 — which was primarily driven by a 27% year-on-year increase in Bitcoin (BTC) production, offset by a decline in Bitcoin prices, according to the firm’s Aug. 9 results filing.

The firm’s mining revenue of $49.7 million attributed to 64.7% of the firm’s total revenue over the quarter. An additional $13.5 million was made through the firm’s power curtailment credits.

Meanwhile, its Q2 net loss was a massive reduction from the prior year period, which was $353.5 million. It was also around half the net loss posted in the first quarter of 2023.

*Riot Platforms managed to cut its net loss to $27.7 million in Q2. Source: Riot Platforms*

The firm produced 1,775 Bitcoin in the quarter, while its average cost to mine a Bitcoin (BTC) was $8,389 in Q2, beating beat Q1’s average price.

The mining firm also reached an all-time high hash rate capacity of 10.7 exahashes per second and anticipates this figure will reach 20.1 EH/s by the second quarter of 2024, before reaching 35.4 EH/s in 2025.

The estimates come following its purchase of 33,280 mining rigs in late June, with the 35.4 EH/s figure assuming that Riot will exercise its right to purchase an additional 66,560 miners at the same price and terms at some time in the near future.

*Riot predicts the facility's hash rate capacity to increase from 10.7 EH/s at current levels to 35.4 EH/s in 2025. Source: Riot Platforms*

Despite Riot’s share price falling 4.42% earlier in the day, its share price fell another 0.86% in after hours, shortly after the firm’s results were released.

*Riot’s share price fell 0.86% to $16.34 in after hours trading. Source: Google Finance*

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Riot Platforms to add 33,000 Bitcoin miners ahead of 2024 halving

June 27, 2023 Coin Telegraph

Acquisition

The new rigs will add 7.6 EH/s to the firm’s self-mining capacity, but won’t be installed until the first quarter of 2024.

Riot Platforms — one of the world’s largest Bitcoin (BTC) mining companies — has bought 33,280 “next-generation” Bitcoin miners for its Texas facility, costing $162.9 million.

The rigs, which were sourced from mining manufacturer MicroBT, will boost the firm’s self-mining capacity by 7.6 exahashes per second (EH/s) and comes “in advance” of Bitcoin’s next halving cycle, which is set to take place in mid-2024.

Riot Purchases 7.6 EH/s of Next Generation Miners from MicroBT, Manufactured in the United States.

Read more in today’s press release: https://t.co/esLToy798H
— Riot Platforms, Inc. (@RiotPlatforms) June 26, 2023

Riot Platforms CEO Jason Les stated on June 26 that the deal will increase the firm’s self-mining capacity to 20.1 EH/s once the machines are installed in the first quarter of 2024:

“These new miners will contribute an additional 7.6 EH/s to Riot’s self-mining capacity when fully deployed and will further enhance our already strong fleet efficiency in advance of the upcoming Bitcoin halving.”

Les added the rigs we built specifically for “immersion cooling systems,” such as those used at the firm’s Corsicana facility.

Of the 33,280 machines, 8,320 are M56S+ models with a hash rate of 220 terahashes per second (TH/s), while the remaining 24,960 M56S++ are slightly more powerful at 230 TH/s.

However, the machines won’t arrive until December and full deployment of the miners won’t be completed until mid-2024.

Riot said it may also purchase 66,560 M56S++ models before December 31, 2024, adding 15.3 EH/s to the firm’s self-mining capacity. The company may choose to exercise this option in whole or in part.

Join our team as they take you through Riot's production and operations updates for the month of May. Riot produced 676 #Bitcoin and had a deployed hash rate of 10.5 exahash per second.

Hear from Riot’s VP of Research, @BitcoinPierre, as he touches on Riot's active community… pic.twitter.com/lD3YJVkMct
— Riot Platforms, Inc. (@RiotPlatforms) June 16, 2023

Despite the news, Riot’s share price fell 7.2% to $10.77 on June 26, according to Google Finance.

Meanwhile, on June 21, Bitcoin miner Akron Energy announced that it bought a 200-megawatt (MW) mining facility in Hannibal, Ohio, for an undisclosed amount.

It’s the Sydney-based firm’s first expansion into the United States following a $26 million raise on June 20.

The firm plans to immediately complete the first design stage of the Hannibal facility, which it hopes will provide 100 MW of power.

The hosting services will be provided to the firm’s institutional-scale clients in the Bitcoin industry.

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BTC miner Rhodium faces lawsuit over an alleged $26M in unpaid fees: Report

May 14, 2023 Coin Telegraph

BTC miner Rhodium faces lawsuit over an alleged M in unpaid fees: Report

Coin Telegraph

Crypto mining firm Riot Platforms seeks to terminate “certain hosting agreements” with Rhodium and requests exemption from any owed power credits to the counterparty.

Crypto mining firm Riot Platforms – formerly Riot Blockchain – has taken legal action in an effort to recover “more than $26 million” in alleged unpaid fees from Texas-based Bitcoin (BTC) miner, Rhodian Enterprises.

According to Riot Platform's Q1 2023 financial report published on May 10, Whinstone, a wholly owned subsidiary of Riot, filed a petition on May 2 in the 20th District Court of Milam County, Texas. It alleged that Rhodium Enterprises breached its contract by failing to pay hosting and service fees associated with its use of Whinstone's facilities for mining operations.

Riot is seeking to recover “more than $26 million,” plus legal fees and other expenses that are incurred during the legal proceedings, as outlined in the report.

It was further requested that “certain hosting agreements” with Rhodium are terminated and proposed that it is exempt from repaying any outstanding power credits to the Texas-based Bitcoin mining company.

*Extract of Riot Platforms quarterly report for the period ended March 31. Source: SEC*

Although the disclosure of unpaid fees was stated, Riot was transparent with stakeholders, acknowledging that “the likelihood” of recovering the funds at this stage is uncertain. It noted:

“Because this litigation is still at this early stage, we cannot reasonably estimate the likelihood of an unfavorable outcome or the magnitude of such an outcome, if any.”

It was reported that Rhodium was served on May 8, and have until May 30 to respond.

The report also emphasized Riot’s growth in mining operations, stating that it had mined “2,115 Bitcoins,", representing an increase of 50.5% from the number of Bitcoins mined during the first quarter of 2022.

Furthermore, stakeholders were reassured in the report that Riot does not have any affiliations with the banks that have experienced collapses in recent times. It noted:

“We did not have any banking relationships with Silicon Valley Bank, Silvergate Bank, or First Republic Bank, and currently hold our cash and cash equivalents at multiple banking institutions.

Riot anticipates that crypto mining companies will continue to experience challenges due to the "significant price decline of Bitcoin" and “other national and global macroeconomic factors,” as seen in 2022.

It was stated that given Riot’s "relative position" in the industry, “liquidity and absence of long-term debt,” it is positioned to “benefit from such consolidation.”

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Riot Platforms

Marathon's Bitcoin production rises 245%

Riot Platforms ups BTC production too

CleanSpark records its ‘best quarter’ and ‘best fiscal year ever’

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