CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82.67% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money

Riot Blockchain reports massive Q2 gains

By Daniel Tyson

17:20, 24 August 2021

Blockchain illustration
Blockchain illustration - Photo: Shutterstock

Riot Blockchain reported stupefying revenues for the second quarter of 2021 due largely to the May acquisition of Whinstone and mining revenues.

The company’s mining revenue increased by 1,540% to $31.5m during Q2 versus $1.9m during the same period in 2020, according to a company statement.

In mid-day trading Tuesday, the company’s stock was trading at $36.35, up 1.74%, but nowhere near its 52-week high of $79.50. It closed Monday at $35.73.

Bitcoin was trading at $48,079 per US dollar Tuesday at noon EST, down significantly from its April 14 high of $62,382.

Riot Blockchain’s spreadsheets show prodigious growth during the quarter, especially in its bitcoin mining-related segment, adding a 70% increase to its mining revenue, which resulted in Riot producing $19.3m of net income.

These are heady figures compared to same period last year when Riot reported an overall net loss of $10.6m.

Whinstone US

Company executives gave credit for the revenue increase to the May purchase of Whinstone US, which accounted for $2.9m in revenue for the quarter, despite only being operational for one month after the acquisition.

“With the successful acquisition of Whinstone US, the company’s growth prospects have been significantly de-risked, and future financial opportunities are very exciting,” said Jason Le, chief executive officer at Riot.

“Riot is aggressively expanding its capacity at Whinstone, which is expected to provide the critical infrastructure necessary to successfully execute on driving continued growth for the company,” he said.

XLM/USD

0.51 Price
+49.930% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 0.00216

BTC/USD

98,385.55 Price
-1.110% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00

XRP/USD

1.49 Price
+2.080% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 0.01168

DOGE/USD

0.45 Price
+8.640% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 0.0012872

The acquisition created one of the largest hosting and mining companies in North America. According to the release, Riot provides data centre hosting of bitcoin mining equipment for institutional clients.

Riot has its headquarters in Castle Rock, Colorado, and the Whinstone facility operates out of Rockdale, Texas. The company also has mining equipment operating in upstate New York under a co-location hosting agreement with Coinmint.

What is your sentiment on RIOT?

12.34
Bullish
or
Bearish
Vote to see Traders sentiment!

More time

Earlier this month, Riot Blockchain asked the US Security and Exchange Commission (SEC) for more time to file the quarterly report until Whinstone finished an internal audit.

In the file, Riot Blockchain explains it, “requires additional time to complete certain disclosures and analyses” of Whinstone US’s revenue.

Bumpy history

Some could see Q2’s numbers as Riot Blockchain redeeming itself after a turbulent history in leadership.

In 2018, Riot Blockchain was rocked by charges brought by the SEC against two of its most important leaders for “long-running fraudulent schemes” that racked up more than $27m. Along with eight others, then-CEO John O’Rourke and Barry Honig, once Riot’s largest shareholder, where labelled “microcap fraudsters” by the SEC.

The charges are not related to Riot Blockchain, and it is not named or referred to in the complaint, according to media reports.

Trade Riot Blockchain, Inc. - RIOT CFD

1m
5m
15m
30m
1H
4H
1D
1W

Related topics

Rate this article

Capital Com is an execution-only service provider. The material provided in this article is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents and has not been prepared in accordance with the legal requirements designed to promote investment research independence. While the information in this communication, or on which this communication is based, has been obtained from sources that Capital.com believes to be reliable and accurate, it has not undergone independent verification. No representation or warranty, whether expressed or implied, is made as to the accuracy or completeness of any information obtained from third parties. If you rely on the information on this page, then you do so entirely at your own risk.

Still looking for a broker you can trust?

Join the 660,000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading