Riot Blockchain Drops After Missing Q3 Revenue, Earnings Estimates

Shares of Riot Blockchain (RIOT) were down almost 11% in early trading on Tuesday after the bitcoin miner’s third quarter revenue and earnings missed average analyst estimates, according to FactSet data.

• The bitcoin miner’s third quarter revenue was $64.8 million, compared to the consensus analyst estimate of $67.1 million. Earnings per share were a net loss of $0.16, while analysts expected a profit of $0.35.
• The net loss in the quarter was “significantly impacted” by a non-cash stock-based compensation expense of $36 million and a non-cash unrealized loss of $11.2 million on marketable equity securities, the company said in a statement.
• Riot’s mining revenue margin, or mining revenues net of the cost of those revenues, was 76% in the third quarter versus 47% in the same period last year.
• The miner said it increased bitcoin production by 482% to a record 1,292 bitcoin during the quarter, compared to 222 bitcoin during the same quarter a year ago. The miner held 3,995 bitcoins as of Oct. 31.
• Riot had 27,270 miners deployed as of Oct. 31 and additional 11,500 S19J Pro Antminers are in the process of being shipped.
• Subsequent to Sept. 30, the company also completed its previously announced at-the-market equity offering of $600 million.
• The stocks of crypto miners, which are most tied to cryptocurrency prices, were falling after both bitcoin and ether prices were down more than 5% on Tuesday.