Riot Platform inc., one of North America’s largest bitcoin (BTC) mining companies, released its 2022 annual financial report indicating a net loss of $509.6 million.
According to the annual report released on March 2, the company suffered significant non-cash impairment charges. Non-cash impairment charges are accounting expenses not settled in cash payments. They include amortization, stock depreciation, and goodwill charges.
In the case of Riot, non-cash impairment payments related to goodwill, bitcoin, and miner impairments were the most impactful, grossing about $538.6 million. Additionally, bitcoin depreciation and amortization accounted for $108 million, while non-cash stock-based compensation $24.5 million loss.
Riot, one of the largest mining companies in North America, has released its full-year 2022 financial report, announcing that it will have $230 million in cash, no long-term debt, and 6,974 bitcoins by the end of 2022. Reported a net loss of $509.6 million https://t.co/IIvuHRLNZV
— Wu Blockchain (@WuBlockchain) March 3, 2023
The acquisition of the Whinston facility and ESS Metron accounted for a goodwill impairment charge of $335.6 million. ESS Metron is among the market leaders in designing and producing highly engineered electrical products. Its acquisition by Riot complements the acquisition of Whinston’s facility as a critical supplier.
Crypto enthusiasts on Twitter have expressed dissatisfaction with the company’s losses. One user, through their Twitter handle @Cryptadamist, sarcastically explained that it is “awfully impressive” that Riot has decided to file an extension with the SEC citing wrong figures recorded after losing half a billion in 2022.
🧐 awfully impressive $RIOT can file a non-timely extension with the #SEC saying all their numbers have been wrong for years and at the same time release the (soon to be corrected, almost certainly downward) incorrect numbers to shareholders…Only lost half a billion in 2022! https://t.co/greNG6midw
— ⚯ M Cryptadamus ⚯ | @cryptadamist@universeodon.com (@Cryptadamist) March 3, 2023
The user agreed with the Riot shareholders’ refusal to pay their executives about $90 million compensation. He added that they did not deserve it since they could not profit in a “bullish market with a massive subsidy.”
Even in the harsh business climate of 2022, Riot made significant strides in increasing its efficiency in mining bitcoins. These achievements include the production of 5,554 bitcoins, a 46% increase from 2021, total revenue of $259.2 million, and a record hash rate capacity of 9.7 EH/s.
According to Jason Les, the CEO of Riot, 2022 marked a “remarkable year of growth” for the company. He added that Riot achieved an all-time high hash rate, significantly contributing to the high monthly bitcoin production. Les also emphasized that the company’s “industry-leading financial strength” will cushion its aggressive growth plans this year and beyond.
