Riot Platforms Achieves Record Revenue Yet Posts Q1 Loss as Mining Costs Surge
Bitcoin miner Riot Platforms reported record quarterly revenue of $161.4 million in Q1 2025, exceeding Wall Street estimates of $159.79 million by 1%. Despite this milestone, the company posted a net loss of $296,367, a stark contrast to the $211,777 net income reported in the same quarter last year.
The Q1 revenue represented a 50% increase compared to the first quarter of 2024. CEO Jason Les announced the results on May 1, noting the company had reached a new quarterly revenue record.
Mining costs nearly doubled year-over-year, with the average cost to mine one Bitcoin rising to $43,808 in Q1 2025 compared to $23,034 in Q1 2024. Riot attributed this 90% cost increase primarily to the April 2024 Bitcoin halving event and a 41% increase in the average global network hashrate.
Despite financial challenges, Riot produced 166 more Bitcoin during the quarter than in the same period of 2024. With Bitcoin trading at $97,072 at publication time, this additional production is worth approximately $16.13 million.
The company currently holds 19,223 unencumbered Bitcoin, valued at approximately $1.86 billion. Shares in Riot Platforms (RIOT) closed up 7.32% on May 1, trading at $7.77 according to Google Finance.
On April 23, Riot announced it had secured a $100 million credit facility from Coinbase, using its Bitcoin holdings as collateral. Les described this as the company's "first Bitcoin-backed facility" as the miner continues to pursue expansion plans.
These developments come as states across the U.S. advance cryptocurrency adoption initiatives. On April 28, the Arizona Legislature passed two bills allowing for state-level cryptocurrency reserves, with one permitting the state treasurer to invest up to 10% of funds into cryptocurrencies, primarily Bitcoin. The bills represent part of a growing national trend, with approximately 15 other states considering similar legislation.
