RIOT DIFFERENT RIOT POINTS PRICE UPDATE

During the same period, BITF's total mining cost was only $25,000 per BTC, 60% lower than Riot.ĩ0% of general expenses or 46% of total expenses went to stock compensation to the management. In Q3, Riot incurred $78mil in costs to mine 1,292 Bitcoins, or $60,500 total mining cost per BTC. In Q2, Riot incurred $23.271mil in costs (excluding impairment and acquisition cost) in an effort to mine 675 Bitcoins, or $34,475 total mining cost per BTC (7.7% QoQ increased). Less expansion implies lower relative mining capacity to other miners, which implies a lower capacity to earn money. Higher mining cost implies fewer funds can be channeled into expansion. This implies that absolute mining capacity is not relevant. The number of Bitcoins that can be mined given a fixed mining capacity is relative to the total mining capacity in the Bitcoin network measured as the Bitcoin network hash rate. Since the value of a business is derived from profitability, a Bitcoin mining company with a higher total mining cost should demand a lower valuation. The higher the cost, the lesser the profit per BTC mined. The intrinsic value of a Bitcoin mining company is also tied to cost control. Should Bitcoin's market price fall below the total mining cost per BTC, the company will not be able to cover the mining costs and risk losing its Bitcoin holdings. The greater the positive difference between Bitcoin's market price and total mining cost per BTC, the lesser Bitcoin needs to be sold and the faster the Bitcoin holdings will grow. This ability is tied to 2 factors: Bitcoin's market price and total mining cost per BTC.

The goal of a Bitcoin mining company is to retain as many Bitcoins mined as possible. The risk of having higher costs is three-fold.

RIOT DIFFERENT RIOT POINTS PRICE UPDATE

Now that RIOT is approaching our price target, this article aims to update our investment thesis based on RIOT's Q3 earnings report, Bitcoin's recent price action, and the current macroeconomic conditions.įigure 1: Performance of miners against Bitcoinĭata by YCharts Risks of Poor Cost Control

Riot different riot points price