The biotech company switched to Bitcoin mining. Riot Blockchain published solid results for the first quarter of 2020 in its latest quarterly report submitted to the Securities and Exchange Commission (SEC). of the United States.
Posted on May 8th, The report found the company’s revenue from cryptocurrency mining had reached $ 2.4 million in the three months ended March 31, 2020 (Q1 2020).This corresponds to a 70% increase in income over the previous year compared to $ 1.4 million in the first quarter of 2019.
Riot announced that he hadn’t mined cryptocurrency, however, and stated that “the bitcoins produced in 2020 were 280 versus 330 in 2019”..
Instead The company attributed the significant increase in sales to the increase in Bitcoin (BTC) values in 2020It was noted that prices averaged $ 8,287 per bitcoin in the first quarter of 2020, compared to $ 3,791 per bitcoin in the first quarter of 2019.
In the meantime Costs were stable year-over-year ($ 1.4 million and $ 1.5 million in the first quarter of 2020 and first quarter of 2019, respectively).and consist mainly of direct mining production costs, including rents and utilities.
However Riot reported an increase in the depreciation cost of its recently acquired mining equipment, an estimated increase of approximately $ 600,000. compared to the first quarter of 2019.
Riot pays less legal fees
Selling, general and administrative expenses increased 18% in the last quarter compared to the same period last yearHowever, attorney fees have dropped $ 0.3 million.
This, as Riot emphasizes, is because the company no longer has to pay litigation fees related to SEC investigations..
As reported The SEC had launched an investigation into the company after Riot Blockchain renamed blockchain at the height of the crypto industry hypeThis coincides with the shift in the company’s focus from biotechnology to cryptocurrency mining.
The Commission had previously indicated that companies whose names were changed to include blockchain would be subject to closer scrutiny. on suspicion of exploiting the hype to increase stock prices.
In February this year The SEC completed its investigation into Riot Blockchain without recommending enforcement measures..
The same month Riot Blockchian has decided to stop development and sell the RiotX digital currency exchangeto focus on mining before cutting Bitcoin in half this month.
The sector in general
Other miners have reported positive mining results this year, including the Argo blockchain listed on the London Stock Exchange., whose strong performance, in contrast to Riot, was not reflected in an increase in income, but in the extraction of higher amounts of Bitcoin.