Thanks to a well-crafted trading algorithm, the cryptocurrency market enjoyed the spotlight this week. Bitcoin surged by 20% and many altcoins were quick to follow the brief spike, which managed to last just a couple of hours. Since then the market calmed down to its previous state.
Nevertheless, it was not enough for Riot Blockchain to catch up to its gross 2018 losses. The Nasdaq-listed cryptocurrency mining firm was hit badly by last year's bear market and as a result, its financial report is drowned in a sea of red.
“Generated approximately $7.7 million in revenue on the production of 1,081 Bitcoins (including Bitcoin Cash as converted) and 3,023 Litecoins for the year. The Company established steady-state mining of cryptocurrencies at our approximately 8,000-miner facility in Oklahoma City commencing in June 2018“.
While these $7.7 million might seem like tons of cash, the sum isn't really that large compared to Riot's loss of $58 million.
“Net loss attributable to Riot Blockchain of approximately $58 million. The net loss was largely attributable to the noncash aggregate impairments, depreciation, amortization, and stock-based compensation expenses of approximately $45.2 million,” the press release explains.
The company is not profitable mainly because its daily operations focus entirely on cryptocurrency mining. As you know, mining algorithms change by the hour and mining rigs require more and more electricity to solve the mathematical problems and process all of the network transactions. That being said, electricity bills pile up and expenses greatly surpass any income.
Just a year ago, Riot Blockchain was thoroughly investigated by the US Securities and Exchange Commission. Rumor has it, the investigation is ongoing.
The mining firm was established in 2017, after changing its name from Bioptix. It entered into the crypto/blockchain industry by purchasing a minority stake at Coinsquare, a Canadian digital asset marketplace.
Despite the fact that Riot Blockchain failed to turn a profit last year, the company is willing to push the market to its limits.
“The Company continues development progress with RiotX, its planned cryptocurrency exchange and the Company has partnered with providers such as Shift Markets, Ltd. in the establishment of the exchange”, the announcement says.
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