The mining industry is becoming very lucrative, as mining companies are mining cryptos for exchanges and other platforms to buy and then sell to their users. Bitcoin’s growth throughout 2020 led to many expansions of digital asset service providers. A well-known mining firm Riot Blockchain revealed how its hashrate has increased by over 400% by the end of 2020.
This information was shared through the US-based firm’s financial reports, explaining how the company has expanded over the months by 460%. The firms also increased the number of Bitcoin it had in its reserve by over 100%, which is not surprising as Bitcoin grows even more valuable and expensive in the market. The business isn’t going to sell-off mined Bitcoin immediately, as it would wait for a potential price increase before selling it.
Riot Blockchain reveals financial report
Asides from the increased hashrate, other things have increased, such as the revenue Riot sees yearly. The business shared how its 2020 revenue of $12 million is a 78% increase against 2019’s revenue. This increase is due to the new operational hashrate, which has moved from 101 penthashes per second to 566 PH/s in 2020.
While having had an impressive standing, the business added that it had around 12.7 million in losses last year. While this might cause the business some essential profits, it is better than its 2019’s 20 million loss. The firm changed and improved so many things in 2020 as it increased its crypto and cash holdings from $11.3 million in 2019 but saw a massive increased last year, where it had $235 million worth of cash and crypto in its reserve.
The company also increased its Bitcoin holding from 514 BTC to over 1000 BTC. The company’s present crypto reserve worth almost $70 million at press time. Similarly, the business clarified that it’s still strong on debt financing for the running of its operation as it had a deficit of $229 million in the second quarter and about $300 million around the last quarter of 2020.
Riot plans to focus on Bitcoin
The company had announced that it would be mining Bitcoin predominantly, and this had made it one of the biggest firms on a hashrate basis. Riot announced that it was pleased to invest in increasing its hashrate, which made it enjoy new opportunities with the digital asset space.
The firm is one of the biggest firms in the mining industry, and sources explained that it is among the top-four in the sector. It’s safe to note that most of the Bitcoin mining companies are operating at a loss. It’s good to know that their stocks have grown sporadically due to the increased interest in Bitcoin.
North American firms are already getting interested in mining Bitcoin as Blockcap. A firm in the continent explained that it currently mines 7 Bitcoin daily but would increase the capacity to 30,000 before the year ends. The firm hopes to achieve this goal with the recently raised funds to expand current operations. Riot’s stock prices have fallen since the year’s beginning by over 30%, and the reason for this is unclear.