Riot Platforms Sells 4300 BTC to Fund AI Datacentre Expansion
Riot Platforms, a US-based Bitcoin miner, has decided to sell 4,300 Bitcoins it holds to fund its AI datacentre network expansion. The move comes as Riot faces increasing pressure due to higher electricity costs and falling hashprice.
The company's second-quarter mining revenue fell by 19.3 percent, partly due to a sharp drop in hashprice to a record low of $30 to $35 per day per petahash per second. Only operators with access to low electricity rates and the latest equipment can maintain profitability at current market conditions.
Riot's mining costs are lower than the market average, but the pressure is increasing. The company's direct mining cost per Bitcoin rose to $49,912 due to higher power prices and the impact of its facility expansion in Kentucky.
The sale of part of Riot's Bitcoin holdings has not compromised its financial capacity. It still holds $1.2 billion in cash-equivalent assets, including $548.9 million in cash and 11,380 Bitcoins.