Stocks of Nasdaq-listed Riot fell 4.87% in pre-market trading on Tuesday, after U.S. Bitcoin miner Riot Blockchain on Monday reported weaker revenues in the third quarter of this year as other major miners struggle with liquidity issues.
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- The decline on Tuesday followed a 0.69% drop on Monday that closed at US$5.75.
- Riot Blockchain booked US$46.3 million in total revenue in the third quarter of 2022, down from US$64.8 million in the same period last year, it said in its latest earnings report released on Monday in the U.S.
- The company’s net loss widened to US$36.6 million in the third quarter this year, as compared to a net loss of US$15.3 million a year ago, according to the report.
- While other major miners, including Core Scientific, have mentioned potential bankruptcy, Riot said it held about US$255 million worth of cash and cash equivalent at the end of September, compared with US$270.5 million at the end of June.
- “Despite rising energy prices, which significantly impacted many Bitcoin miners, Riot was able to leverage our long-term fixed rate power contract to generate significant power credits and in doing so, significantly reduce our operating costs,” said Jason Les, CEO of Riot.
- Riot earned US$13.1 million in power credits in the third quarter, compared with US$2.5 million in the same period in 2021.
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