Riot Blockchain released its unaudited production and operations updates for November 2022. According to the release, the company produced 521 BTC, which is 12% more than November 2021 production of 466 BTC. It has sold 450 BTC, generating a net income of $8.1 million and a deployed fleet of 72,428 miners with a hash rate capability of 7.7 exahashes per second (EH/s) since November.
Jason Les, CEO of Riot stated, “Riot once again set a new record for total hash rate capacity during the month of November, resulting in our highest monthly value of bitcoin production to date.” He cautioned against this positivity, saying, “Despite this new level of production, the expected production was approximately 660 bitcoins given our operating hash rate for the month, assuming normalized performance of the mining pool we participate in. Variations in the mining pool can affect results, and while these variations should even out over time, they can be volatile in the short term. This variance led to a lower than expected production of bitcoins in the month of November, relative to our hash rate.”
Bitcoin’s hash rate has been at an all-time high for the past few months, hitting new all-time highs and effectively making miners who aren’t using top-of-the-line equipment unprofitable. This in turn has an impact on public companies that are exposed to this market.
To further formulate its production outlook, Les said in a statement: “To ensure more predictable results in the future, Riot will be moving to a different mining pool that offers a more consistent reward mechanism, so that Riot will fully benefit from our rapidly growing hash increase capacity as we work towards our goal of reaching 12.5 EH/su in the first quarter of 2023.”
The report does not specify which mining pool Riot will direct its miners to now.
Looking ahead, Riot aims to achieve a total standalone mining hashrate capacity of 12.5 EH/s during the first quarter of 2023, assuming a total deployment of approximately 115,450 Antminer ASICs.
However, this does not include any potential incremental productivity gains from a company using 200 MW of submersible infrastructure. The bulk of Riot’s own mining fleet will consist of the latest S19 series miners. In addition to its own mining operations, the company hosts approximately 200 MW of institutional Bitcoin mining clients.