Cryptocurrency mining firm Riot Blockchain, which changed its name from Bioptix to take advantage of the crypto ecosystem’s 2017 bull run, has recently reported a $58 million net loss last year.
According to The Next Web, the firm generated $7.7 million in revenue thanks to its cryptocurrency mining facility in Oklahoma City, where it’s been running over 8,000 mining machines since June of last year. The operation earned it 1,081 bitcoin – which includes conversions from bitcoin cash – and 3,023 litecoin.
Per the news outlet Riot Blockchain managed to maintain a positive gross margin of 33%, putting its losses down to company liabilities, totaling $45.2 million. In its daily operations, the company made a profit, but depreciation and non-cash expenses took their toll.
Interestingly, the company was hit with a subpoena from the US Securities and Exchange Commission (SEC) last year, as its assets and possible investment assets are being investigated by the regulator.
Riot Blockchain (NASDAQ: RIOT) is notably a company that started off as Bioptix, but changed its name in 2017 to take advantage of the cryptocurrency ecosystem’s bull run. At the time, according to Yahoo Finance, its stock surged from $4 to $40, before coming back down to trade at $4.8.
The surge was partially caused by its name change, which took advantage of the ‘blockchain’ buzzword, and by the acquisition of a 12.1% stake in Canadian cryptocurrency exchange Coinsquare, which it still has.
Recently, as covered, crypto mining giant Bitmain saw its initial public offering (IPO) fail, leading to a new chief executive being named. The cryptocurrency unicorn was looking to go public in what could’ve been one of the largest IPOs in history.