Crypto Mining Firm Riot Blockchain Reports $58 Million Net Loss in 2018

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.

Riot Blockchain's price performance

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.

Argo Blockchain Sees Revenue Rise Ten-Fold to $11 Million in 2019

Francisco Memoria

Argo Blockchain, the first cryptocurrency mining firm to be listed on the London Stock Exchange (LSE), has seen its revenue rise ten-fold last year to $11 million.

According to a report published by ProactiveInvestors, Argo Blockchain managed to bring in as much as £8.5 million ($11 million) last year, up from £760,000 ($987,200) in 2018, when the cryptocurrency space dealt with a year-long bear market.

In the fourth quarter of last year, Argo reportedly managed to mine a total of 432 BTC, while in the third it managed to mine 426. During the second half of 2019 bitcoin dropped from its $13,000 year and, as a result, the firm’s revenues dropped. The decline in revenue was also related to increased mining difficulty, the firm added.

As CryptoGlobe reported, Bitcoin’s hashrate recently hit a new all-time high of 120 EH/s after tripling over the past year, as miners are focusing their resources on the cryptocurrency’s blockchain and competing with each other to mine as much as possible ahead of the halving, set to occur later this year.

The halving will see block rewards on the Bitcoin blockchain drop from 12.5 BTC to 6.25 BTC per block, ensuring BTC’s inflation rate is stable until all 21 million bitcoins have been mined. Data shows there are now 18.15 bitcoins in circulations, which means most has already been minted.

Argo’s mining margin has dropped to 52% on the fourth quarter from 73% in the third over these factors, although the firm added it still has one of the “highest efficiency rates in the market.”

The firm has been expanding its mining capacity ahead of schedule, it says, as it has already added 6,375 mining machines to its operation. As reported, Argo Blockchain was looking to employ a total of 17,000 by the end of the first quarter of this year.

Argo’s CEO, Peter Wall, stated:

Our state-of-the-art mining platform is performing as expected and with the expansion of our mining network on pace, along with the recent rise with the price of Bitcoin, Argo is well-placed for a strong year ahead.

Featured image by Лечение Наркомании on Pixabay.