Riot Blockchain publishes its financial report for the first quarter of 2020
Riot Blockchain, one of the largest cryptocurrency mining companies in the United States, has published its financial report for the first quarter of 2020 in which they reveal that the company records recurring losses and negative flows in its operations.
Financial deficit and hopes placed on new equipment
Riot Blockchain, one of the largest cryptocurrency mining companies in the United States, has published its financial report for the first quarter of 2020 in which they reveal that the company records recurring losses and negative flows in its operations. Riot has managed to keep its operations running through equity financing and debt taking. Despite the negative outlook that the company's present represents, Riot affirmed that the arrival of 2,000 mining machines of the next generation will allow them to double their hash rate and, consequently, solve their financial problems.
In a press release, Riot revealed financial data for the first quarter of 2020. In the report, the company claims to have $ 14 million in cash, $ 5.3 million in crypto assets - primarily Bitcoin (BTC) - and valued working capital. at USD 17 million. Compared to the first quarter of 2019, the first quarter of 2020 reveals a 68% increase in revenue that increased from $ 1.4 million to $ 2.4 million. An increase in corporate liquidity is also reported, which reached USD 19.3 million compared to the USD 11.3 million reported as of December 31, 2019. Despite the fact that the data appears to be positive, the company affirms that it has an accumulated deficit It exceeds USD 221 million and has been financed through debt and equity financing. In the report, Riot explains that they expect "to continue incurring losses from operations in the short term. The company is closely monitoring its balances, cash needs and expense levels."
Riot recently reported the purchase of 1,040 S19 Pros Bitmain and 1,000 S19, stating that they hope to double their operational hash rate. However, the reduction in the rewards that miners receive for each block mined (halving) puts a question mark in Riot's statements: the only thing left is to wait and closely follow the results reported by the company.