Riot Platforms is surging ahead, posting a record $376.7 million in revenue up 34.2%, despite soaring mining costs and industry-wide challenges. The company’s 2024 earnings report underscores the growing profitability of institutional Bitcoin mining, even amid rising energy costs and increased network difficulty.
Riot’s Record Revenue and Net Income Growth
Riot Platforms recorded $376.7 million in total revenue for 2024, marking a significant 34.2% increase from the previous year. The company’s net income surged to $109.4 million, a dramatic turnaround from its $49.4 million net loss in 2023.
“These results are particularly noteworthy in the context of the Bitcoin network’s ‘halving’ in April 2024 and a 67% increase in the global hash rate over the year,” said Jason Les, CEO of Riot Platforms.
The company attributes its success to key growth initiatives, including:
- Energization of the Corsicana Facility
- Acquisition of Block Mining (Kentucky-based) and E4A Solutions (electrical engineering services firm)
Bitcoin Production Declines, Mining Costs Surge
Despite its revenue growth, Riot produced fewer Bitcoin in 2024, with total BTC mined dropping to 4,828 from 6,626 in 2023. This decline was driven by increased mining costs, exacerbated by:
- A 53% reduction in power credits compared to 2023
- The Bitcoin halving event in April 2024
- A 67% surge in the global network hash rate
The cost to mine each Bitcoin skyrocketed from $3,831 in 2023 to $32,216 in 2024, reflecting the mounting challenges in large-scale mining operations.
Riot Strengthens Bitcoin Reserves with $579M Investment
In addition to mining operations, Riot bolstered its Bitcoin holdings by acquiring an additional 5,784 BTC using proceeds from a $579 million convertible senior notes offering. The company now holds 17,722 BTC, representing a 141% year-over-year increase.
By the end of January 2025, Riot’s Bitcoin reserves had climbed to 18,221 BTC, making it the third-largest publicly traded Bitcoin holder behind MicroStrategy and Marathon Digital Holdings, according to Bitbo data.
AI and High-Performance Computing (HPC) Expansion
Looking ahead, Riot Platforms is shifting focus toward AI and HPC (High-Performance Computing), leveraging its Corsicana facility to diversify beyond Bitcoin mining.
“Due to our efforts over the prior year, we are in an exceptionally strong position and focused on executing on the exciting opportunities ahead of us, particularly on the AI/HPC front,” Riot stated in its report.
This strategic pivot follows industry trends, as competitors like Hut 8 and Core Scientific expand into AI-related computing services. Riot CEO Jason Les previously announced in October 2024 that the company is exploring opportunities in AI, aligning with the industry’s shift toward computational infrastructure.
To drive this expansion, Riot appointed Jaime Leverton, the former CEO of Hut 8, to its board of directors. Leverton is expected to oversee Riot’s evaluation of AI and HPC opportunities within its Bitcoin mining infrastructure.
What’s Next for Riot?
Riot’s record revenue and aggressive expansion into AI and HPC suggest a broader strategic vision beyond Bitcoin mining. As mining costs rise and the industry faces increasing regulatory and economic pressures, companies that diversify into computational services may be best positioned for long-term growth.
With Bitcoin’s next halving event set to further challenge mining profitability, Riot’s AI push could define its future in the evolving digital asset landscape.
