Bitcoin Mining Performance - As of December 31, 2024, the total deployed hash rate for the Bitcoin Mining segment increased to 31.5 EH/s, up from 12.4 EH/s as of December 31, 2023, representing a growth of approximately 154.0%[25]. - The company mined 4,828 Bitcoin in 2024, a decrease of 27.1% compared to 6,626 Bitcoin mined in 2023, attributed to increased network difficulty and the halving event[25][47]. - The company anticipates a total hash rate of approximately 38.4 EH/s by the end of 2025, based on existing operations and expected miner deliveries[25]. - The Bitcoin reward for solving a block was halved from 6.25 to 3.125 Bitcoin in April 2024, impacting the supply dynamics in the market[46]. - Bitcoin Mining production decreased from 6,626 Bitcoin in 2023 to 4,828 Bitcoin in 2024, representing a decrease of approximately 27.1%[92]. - Bitcoin Mining revenue for the years ended December 31, 2024, and 2023 was 321.0millionand189.0 million, respectively, indicating a significant increase in revenue[403]. - Bitcoin Mining revenue increased to 321,002,000in2024,up69.8188,996,000 in 2023[417]. Strategic Developments - A long-term agreement with MicroBT was established to secure immersion miners, with a total purchase price of approximately 550.1millionforminerswithahashrateof31.4EH/s[30].−ThecompanyacquiredE4ASolutionsinDecember2024,enhancingitsengineeringcapabilitiesandsupportingitsverticallyintegratedstrategy[39].−TheCorsicanaFacilityisbeingdevelopedtoexpandBitcoinminingcapabilities,withanexpectedcapacityof1GWuponcompletion[62].−PhaseIoftheCorsicanaFacilityincludes400MWofimmersion−cooledBitcoinmininginfrastructure,completedbyDecember31,2024[63].−ThecompanyiscontinuouslyexploringstrategicgrowthopportunitiestocapitalizeonmarketconditionsandenhanceitscompetitivepositionintheBitcoinminingindustry[51].FinancialPerformance−RiotPlatforms,Inc.reportedtotalrevenueof376,658,000 for the year ended December 31, 2024, representing a 34.1% increase from 280,678,000in2023[417].−Thecompanyachievedanoperatingincomeof153,590,000 in 2024, compared to an operating loss of 63,047,000in2023[417].−Netincomefor2024was109,401,000, a significant improvement from a net loss of 49,472,000in2023[419].−Cashandcashequivalentsdecreasedto277,860,000 as of December 31, 2024, down from 597,169,000in2023[415].−Totalassetsincreasedto3,935,307,000 in 2024, compared to 2,051,080,000in2023,reflectingagrowthof91.5791,622,000 in 2024, up from 163,058,000in2023[415].−Thecompany’stotalstockholders′equityincreasedto3,143,685,000 in 2024, up from 1,888,022,000in2023[415].MarketandRegulatoryEnvironment−ThepriceofBitcoinsawsignificantincreasesin2024,drivenbytheapprovalofBitcoinspotETFs,withoneETFsurpassing10 billion in assets under management shortly after launch[42]. - The SEC approved a series of spot Bitcoin exchange-traded funds in January 2024, leading to billions of dollars in inflows[76]. - The company is monitoring potential regulatory developments affecting Bitcoin mining and related energy consumption in Texas and Kentucky[72]. - The company has diversified banking relationships to mitigate potential regulatory risks associated with financial services in the digital asset industry[74]. Operational Efficiency - The company is focused on vertical integration to enhance operational control and reduce costs, which is critical in a competitive mining environment[49][50]. - Immersion cooling technology is being evaluated to improve mining efficiency and increase hash rate without solely relying on new miner purchases[33][36]. - Global supply chain logistics have caused delays, but the company has effectively mitigated impacts on miner deployment schedules[66]. - The company voluntarily curtailed energy consumption during extreme weather events to stabilize the electrical grid, benefiting from the difference in power costs[83]. Employee and Talent Management - As of December 31, 2024, the total workforce consisted of approximately 783 employees, with 629 in engineering, construction, manufacturing, and Bitcoin Mining operations[84]. - The company implemented a long-term performance incentive program for employees, aligning their interests with long-term organizational objectives[85]. - The company aims to maintain competitive compensation and benefits, including medical, dental, and vision insurance, as well as paid leave[91]. - The company actively seeks to attract top talent from diverse backgrounds to foster career growth and retention[88]. - The company recognizes the importance of leadership development and offers training to encourage employee ownership of their impact on success[87]. Asset Management - The company’s Bitcoin is held in cold storage by NYDIG and Coinbase, with no exposure to bankrupt digital asset exchanges[55]. - The balance of Bitcoin as of December 31, 2024, was 17,722 Bitcoin, valued at 1,654,468[92].−During2024,theCompanymadeastrategicdecisiontohaltthesaleofitsBitcoinproductionandincreaseitsBitcoinholdings,classifyingBitcoinasanon−currentassetonitsConsolidatedBalanceSheet[444].RiskManagement−Thecompany’smarketriskexposureincludesthevolatilityofBitcoinprices,whichcouldmateriallyaffectrevenueandnetincome[390].−A10108.9 million for the year ended December 31, 2024, compared to 48.9millionfor2023[391].−Thecompany’ssensitivitytopowerpricechangesindicatesapotentialincreaseinnetincomeof44.4 million with a 10% increase in future power prices for the year ended December 31, 2024[392]. Accounting and Reporting - The company’s internal control over financial reporting was found to be effective as of December 31, 2024, according to the independent auditor's report[398]. - The company’s financial statements for 2024 and 2023 were audited and presented fairly in all material respects[396]. - The company recognizes acquisition-related expenses separately from the business combination and expenses them as incurred[477]. - The company measures its equity method marketable equity securities at fair value at each balance sheet date, with unrealized holding gains and losses recorded in other income (expense)[480].
Riot Platforms(RIOT)2025-02-28 13:17