According to the latest annual financial report released by US-based mining firm Riot Blockchain, the company registered an increase by 460% in its hashing capacity while also doubling the amount of Bitcoin held on its balance sheet in 2020.
Riot registered a 78% growth in total mining revenues, going from $6.7 million to $12 million, as a result of the increase in operational hash rate from 101 pentahashes per second (PH/s) in December 2019 to 566 PH/s in December 2020.
The firm confirmed that it registered profit during Q4 with $3.9 million in net income on a GAAP basis, but, overall, for 2020, it recorded a net loss of $12.7 million. Still, this was a step up from its performance in 2019, when the net loss was close to $20 million.
Riot expanded its cash and crypto holdings from $11.3 million in 2019 to $235 million in 2020. It also doubled its Bitcoin holdings from 514 BTC to 1078 BTC. Its Bitcoin holdings are currently worth $63.6 million.
The company has mentioned that it still relies on equity and debt financing in order to fund its operations. Its deficit increased from $221 million as of Q2 2020 to $299 million in Q4.
Riot celebrated its “strategic decision to solely focus on Bitcoin mining” in 2020, which made Riot a leading miner on a global scale by hash rate.
“We are pleased to have invested into continuing our deployed hash rate growth, allowing us to capitalize on the extraordinary current opportunities in Bitcoin mining.”
Riot represents one of the four largest publicly traded Bitcoin mining firms in the world, alongside Hive Blockchain, Marathon Digital Holdings, and Hut 8. All four companies registered losses, but, on average, their stocks still managed to outperform Bitcoin by 455% in 2020.