Riot Platforms, Inc. (NASDAQ: RIOT), a leading force in Bitcoin mining and digital infrastructure, has released its unaudited production and operations report for December 2023—capping off a transformative year marked by record output, strategic expansion, and innovative energy utilization.
The company mined 619 Bitcoin in December, a 12% increase from November’s 552 BTC, bringing its total 2023 production to 6,626 Bitcoin. This strong finish reflects Riot’s growing operational efficiency and the successful execution of its vertically integrated strategy.
Record-Breaking Annual Output and Financial Performance
Riot’s full-year performance in 2023 was defined by consistent growth and financial resilience:
- Average daily Bitcoin production: 18.2 BTC (up to 20.0 BTC in December)
- Total Bitcoin sold in 2023: 6,185 BTC
- Net proceeds from Bitcoin sales: $176.2 million
- Average net price per Bitcoin sold: $28,491
- December 2023 net price per BTC sold: $42,872—a significant 18% month-over-month increase
Despite a 9% year-over-year decline in monthly Bitcoin production (from 681 BTC in December 2022), the higher realized sale prices and improved operational scale contributed to stronger net proceeds.
Expanding Hash Rate and Miner Deployment
Riot ended December 2023 with a deployed hash rate of 12.4 EH/s, representing a 27% increase compared to December 2022 (9.7 EH/s). The number of active miners stood at 112,944 units, up 28% year-over-year.
This growth is fueled by two major orders placed with MicroBT:
- Initial order (June 2023): 33,280 miners
- Second order (December 1, 2023): Additional 66,560 miners
Together, these orders will add 26 EH/s to Riot’s self-mining capacity. Deployment is expected to begin in Q1 2024 and conclude by the second half of 2025.
Once fully deployed, Riot anticipates reaching a total self-mining hash rate of 38 EH/s, positioning it among the most powerful mining operations globally.
Power Strategy: Generating Value Beyond Mining
One of Riot’s key differentiators is its unique power strategy, which leverages energy market participation to generate additional revenue streams:
- Power curtailment credits (2023): $49.3 million (unaudited)
- Demand response credits (ERCOT programs): $22.3 million (unaudited)
- Total power-related credits in 2023: $71.6 million
These credits—earned by reducing electricity demand during peak grid stress—are equivalent to approximately 2,480 Bitcoin at the average 2023 BTC price. This innovative approach not only supports grid stability but also enhances Riot’s financial resilience without selling mined assets.
Infrastructure Expansion: Corsicana Facility Underway
Riot is actively developing Phase 1 of its second large-scale facility in Corsicana, Texas, which will add 400 megawatts (MW) of data center capacity upon completion.
Key milestones achieved in December 2023:
- Foundation poured for Building A1
- Structural erection underway
- Target energization: End of Q1 2024
Additional buildings in the 400 MW Phase 1 buildout will be brought online in subsequent months. Once fully developed, the Corsicana site is expected to reach up to 1 gigawatt (GW) in total capacity—making it one of the largest Bitcoin mining campuses in North America.
This expansion complements Riot’s existing operations at the Rockdale facility and reinforces its position as a vertically integrated digital infrastructure leader.
Strong Balance Sheet and Liquidity Position
As of December 31, 2023, Riot reported robust financial health:
- Cash on hand: ~$590 million
- Unencumbered Bitcoin holdings: 7,362 BTC
- Total liquidity (unaudited): ~$901 million (based on year-end BTC market price)
- Shares outstanding: ~230.8 million
This strong balance sheet provides Riot with the flexibility to fund future growth, manage market volatility, and execute its hash rate expansion plan through 2025.
Strategic Outlook for 2024 and Beyond
Jason Les, CEO of Riot, emphasized the company’s momentum:
“December’s strong performance capped off a successful 2023… We are proud to close on a high note, having completed the expansion of our Rockdale Facility and making significant progress on Corsicana. As a result of our industry-leading balance sheet strength, Riot is well positioned to execute on our plan to increase our self-mining hash rate to 28 EH/s by the end of 2024.”
The roadmap includes:
- Full deployment of MicroBT miner orders
- Continued integration of energy optimization programs
- Scaling infrastructure to support rising hash rate demands
- Advancing immersion-cooling technologies for efficiency
FAQ: Understanding Riot’s Growth and Strategy
Q: How does Riot generate revenue beyond Bitcoin mining?
A: Riot earns additional income through power curtailment and demand response programs with ERCOT. By voluntarily reducing energy use during peak demand, the company receives financial credits—totaling $71.6 million in 2023.
Q: What is the significance of the Corsicana expansion?
A: The Corsicana facility adds critical scale to Riot’s operations. With up to 1 GW of future capacity, it will support long-term hash rate growth and reinforce Riot’s role in Texas’ energy ecosystem.
Q: When will Riot reach its next hash rate milestones?
A: The company aims for 28 EH/s by end of 2024, with full deployment of new miners expected by mid-2025, targeting 38 EH/s total capacity.
Q: Why did Bitcoin production decrease year-over-year in December?
A: While December 2023 output (619 BTC) was down 9% from December 2022 (681 BTC), this reflects network difficulty increases and maintenance cycles—not operational setbacks. Monthly production still grew 12% from November.
Q: How does Riot’s power strategy benefit shareholders?
A: The power credit program generates non-dilutive income that boosts liquidity without selling Bitcoin. This allows Riot to hold more BTC long-term while funding growth—aligning with shareholder value creation.
Q: Is Riot profitable in the current market environment?
A: With rising BTC prices, cost-efficient operations, and diversified revenue from energy programs, Riot has strengthened its margin profile. The $42,872 average sale price in December significantly exceeded production costs.
Core Keywords Integration
This article highlights key themes central to Riot’s business model and industry leadership:
Bitcoin mining, hash rate growth, digital infrastructure, energy credits, ERCOT demand response, MicroBT miners, Corsicana facility, and BTC liquidity.
These keywords reflect both technical capabilities and strategic advantages that position Riot at the forefront of sustainable, scalable cryptocurrency mining.