Despite Bitcoin mining revenue doubling and exceeding Wall Street expectations, Riot Platforms – one of the largest Bitcoin mining companies in the U.S. – unexpectedly reported a loss of over $296 million in Q1 2025. This development shows that the Bitcoin mining industry still has many risks even when BTC prices are rising sharply.
Record revenue, but profits plummet
According to the newly released financial report, #RiotPlatforms recorded:
Revenue for Q1 2025 reached $161.39 million, up 13% compared to the previous quarter and slightly exceeding analysts' expectations ($160.72 million).
Revenue from Bitcoin mining accounts for a large portion: $142.9 million, doubling compared to the same period last year ($71.4 million).
CEO Jason Les shared:
"We achieved a record quarterly revenue thanks to our investment efforts in mining capacity and operational performance over the years."
However, the company still reported a net loss of $296.4 million, equivalent to $0.90 per share – a sharp drop compared to the net profit of $136.44 million in Q4 2024.
What caused Riot's large losses?
Impact from the Bitcoin Halving event:
In April 2024, the reward for Bitcoin miners will be halved, significantly increasing mining costs. Although Riot maintains stable production (1,530$BTC in Q1 2025, only up 1% compared to the previous quarter), profit margins have been heavily affected.
Large legal costs:
Riot spent over $8 million in Q1 pursuing a lawsuit against rival Rhodium – a bankrupt Bitcoin mining company. However, Riot has recently acquired some of Rhodium's assets, ending the lawsuit and is expected to save on legal costs in the future.
Infrastructure investment costs:
Riot is still building a large-scale mining center in Corsicana to meet the increasing computational demand on the Bitcoin network. This is a necessary investment but has not generated immediate profits in the short term.
Bright spot: Bitcoin price rises, large accumulated assets
Riot currently holds 19,223 BTC, estimated to be worth about $1.87 billion, with Bitcoin trading around $97,222, up 65% in the past 12 months.
Riot's stock price also slightly recovered, up 11.65% in Friday afternoon trading, trading around $8.67.
Connect with the crypto market and Binance users
With the Halving event increasing pressure on mining companies, mining costs across the ecosystem are rising. This could lead to:
Slowing down the issuance of new Bitcoin, contributing to keeping BTC prices high.
Increased costs and barriers for small miners, thus creating advantages for large-scale entities like Riot.
Indirect effects on transaction costs and liquidity on exchanges like Binance, due to lower new BTC supply.
Crypto users need to closely monitor fluctuations in the mining industry, as the revenue volatility of companies like Riot often reflects the short-term future of the Bitcoin market.
Risk warning: Investing in the crypto sector and mining digital assets always carries many risks, especially in the context of rising operating costs and unclear legal regulations. Users need to carefully consider before making financial decisions related to the cryptocurrency market.