What You Need To Know

Riot Blockchain, Inc (NASDAQ: RIOT) said as a part of its fourth-quarter results that it has increased its Bitcoin (BTC) hashing capacity by 460% on a year-on-year basis.

What Happened: The company said that it more-than-doubled the number of BTC it held on its balance sheet at 1,078 BTC as of Dec. 31, as compared to 514 BTC on the same date a year earlier.

BTC traded 0.43% higher at $59,127.58 making Riot’s holdings worth nearly $63.74 million at press time.

Riot reported an increase in mining revenues by 116% to $5.2 million in Q4 2020 compared to $2.4 million for the preceding quarter.

The company minted 303 BTC now worth $17.91 million in Q4, an increase of 36% over the Q3 figure of 222 BTC ($13.08 million at press time).

Riot said the increase in minting was driven primarily by “the increase in the Company’s hash rate combined with network hash rate and adjustments in network difficulty.”

Hash rate implies the total computational power used to mine and process transactions on a proof-of-work blockchain such as one that underpins Bitcoin.

View more earnings on $BTC

See also: How to Buy Riot Blockchain Inc. (RIOT) Stock

Total mining revenue in 2020 was $12 million, which is a 78% year-on-year increase compared to the $6.7 million figure recorded in 2019.

Net income on a GAAP basis during Q4 2020 was $3.9 million compared to a net loss of $3.4 million in the same period in 2019. In Q3 2020 Riot reported a loss of $1.7 million.

Why It Matters: Riot said it is “amplifying” its growth initiatives which will drive further growth for the company including raising the U.S.-based share of the bitcoin mining landscape.

Riot shares have rallied 213.5% since the year began and 6,793.1% on a net basis over one year.

Several other BTC-related companies have also seen shares spike in March including Sos Ltd (NYSE: SOS) and Canaan Inc (NASDAQ: CAN).

Read Next: Bitcoin Mining Revenue On The Rise: Miners Record M In A Single Day

See more from Benzinga

© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.