Riot Platforms Posts Stellar Q4 2024 Results, Leverages Unique Power Assets to Maximize Shareholder Value
The mining landscape has undergone significant changes since Riot Platforms began its Bitcoin mining operations in 2017. At the time, the entire network cash rate was just 3 exahash. Fast forward to 2024, and Riot alone grew its self-finding hash rate by 19.1 exahash to a total of 31.5 exahash, with the global network reaching an all-time high of over 750 exahash.
During this period, Jason Les, CEO of Riot Platforms, notes that institutional adoption of Bitcoin has increased significantly. The approval of the Bitcoin ETF in January 2024 marked a major milestone, resulting in the most successful launch of ETFs ever as measured by AUM. By July 2024, Bitcoin had become a key topic during the presidential election, with prices hitting new all-time highs of $75,000 and then $100,000.
In response to this growing demand for Bitcoin, Riot made a deliberate decision to stop selling Bitcoin produced through its mining activities in order to retain more of it. Additionally, the company purchased Bitcoin for the first time in December 2024, adding over 10,000 Bitcoins to its balance sheet over the course of the year. By the end of 2024, Riot had accumulated a total of 17,722 Bitcoins worth $1.7 billion.
Jason Les emphasizes that this shift does not mean the company has changed its long-term view on Bitcoin. Riot currently maintains approximately 4% of the global network and will continue to pursue a compounding increase in the value of Bitcoin held per share as a key operating metric while seeking to maximize the value of all its assets for shareholders.
The company's strategic decision to focus on maximizing the value of its unique power assets has also led to increased demand from AI/HPC (Artificial Intelligence/High-Performance Computing) players. This shift in market dynamics has resulted in Bitcoin mining power assets being converted into AI/HPC use, further increasing the value of large-scale sites such as Riot's Corsicana and Rockdale facilities.
The company is now poised to benefit from this unique opportunity and maximize shareholder value. In a statement, Jason Les notes that there is a timely chance for shareholders to capitalize on the value of Riot's assets. The CEO goes on to highlight several key accomplishments in 2024, including successfully energizing the Corsicana facility, achieving a nearly 40% Bitcoin yield in 2024, and more than $100 million in incremental asset value appreciation.
Furthermore, Jason Les is excited to share further updates on the company's aggressive pursuit of this opportunity. As Riot continues to navigate the rapidly evolving mining landscape, one thing remains clear: its commitment to maximizing shareholder value while pursuing a long-term vision for Bitcoin's potential.
