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.

PayPal is Cautiously Optimistic About Partnership with Libra Association

  • PayPal cautious about future with Facebook's digital currency libra. 
  • Payment platform was one of the first companies to join and support the Libra Association.

Payment platform PayPal is cautiously optimistic about its relationship with Facebook’s digital currency libra, despite being the highest-profile company to join the Libra Association. 

PayPal Backs Libra Association

In June, shortly after the official unveiling of Facebook’s libra, PayPal announced an intention to join and support the Libra Association, a collection of tech and finance companies promoting the product. 

At the time, PayPal billed the digital currency as a revolutionary product for people around the world, 

We believe in democratizing participation in the digital economy for people from all walks of life, and businesses of all sizes.

However, PayPal appears cautious about its future with Facebook’s digital currency. PayPal investor relations vice president Gabrielle Rabinovitch reiterated Sept. 12 that the company is a non-binding agreement with libra, 

It's a non-binding commitment. And obviously, I think there's a lot of work to happen before we get to that point where it becomes something more than just a very exciting idea.

She added, 

The goals and ambitions of Libra are very consistent with PayPal's overall ambitions in terms of serving the underserved; democratizing access to capital. So we very much believe in the potential of Libra.

While PayPal appears optimistic about the future of libra, the digital currency has endured months of regulatory and political scrutiny concerning its release. 

Earlier in the week, senior U.S. Treasury official Sigal Mandelker told an audience in Geneva that libra would be held to the highest standard of regulatory compliance in order to combat money laundering and terrorist funding.

 

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