Riot's annual report details $500m net loss in 2022

Riot Platform inc., one of North America’s largest bitcoin (BTC) mining companies, released its 2022 annual financial report indicating a net loss of $509.6 million.

According to the annual report released on March 2, the company suffered significant non-cash impairment charges. Non-cash impairment charges are accounting expenses not settled in cash payments. They include amortization, stock depreciation, and goodwill charges.

In the case of Riot, non-cash impairment payments related to goodwill, bitcoin, and miner impairments were the most impactful, grossing about $538.6 million. Additionally, bitcoin depreciation and amortization accounted for $108 million, while non-cash stock-based compensation $24.5 million loss.

Riot, one of the largest mining companies in North America, has released its full-year 2022 financial report, announcing that it will have $230 million in cash, no long-term debt, and 6,974 bitcoins by the end of 2022. Reported a net loss of $509.6 million https://t.co/IIvuHRLNZV

— Wu Blockchain (@WuBlockchain) March 3, 2023

The acquisition of the Whinston facility and ESS Metron accounted for a goodwill impairment charge of $335.6 million. ESS Metron is among the market leaders in designing and producing highly engineered electrical products. Its acquisition by Riot complements the acquisition of Whinston’s facility as a critical supplier.

Crypto enthusiasts on Twitter have expressed dissatisfaction with the company’s losses. One user, through their Twitter handle @Cryptadamist, sarcastically explained that it is “awfully impressive” that Riot has decided to file an extension with the SEC citing wrong figures recorded after losing half a billion in 2022.

awfully impressive $RIOT can file a non-timely extension with the #SEC saying all their numbers have been wrong for years and at the same time release the (soon to be corrected, almost certainly downward) incorrect numbers to shareholders…

Only lost half a billion in 2022! https://t.co/greNG6midw

— ⚯ M Cryptadamus ⚯ | @[email protected] (@Cryptadamist) March 3, 2023

The user agreed with the Riot shareholders’ refusal to pay their executives about $90 million compensation. He added that they did not deserve it since they could not profit in a “bullish market with a massive subsidy.”

Even in the harsh business climate of 2022, Riot made significant strides in increasing its efficiency in mining bitcoins. These achievements include the production of 5,554 bitcoins, a 46% increase from 2021, total revenue of $259.2 million, and a record hash rate capacity of 9.7 EH/s.

According to Jason Les, the CEO of Riot, 2022 marked a “remarkable year of growth” for the company. He added that Riot achieved an all-time high hash rate, significantly contributing to the high monthly bitcoin production. Les also emphasized that the company’s “industry-leading financial strength” will cushion its aggressive growth plans this year and beyond.