According to a report by the mining company Riot Blockchain, its revenue in the first quarter of 2020 increased by 70% compared to the same period last year and reached $2.4 million.
According to the latest report submitted by Riot Blockchain to the US securities and exchange Commission (SEC), the company’s revenue for the first quarter of 2020 was $2.4 million. This is almost 70% more than in the first quarter of last year, when revenue reached $1.4 million. At the same time, the company produced less: 280 BTC instead of 330. The increase in profit is due to an increase in the value of bitcoin, which in the reporting quarter was trading at an average exchange rate of $8287, and in the first quarter of 2019, the average price of the first cryptocurrency was only $3791.
Riot Blockchain’s production costs remained almost the same: $1.4 million this year and $1.5 million in the first three months of 2019. These expenses also include rent and utilities. The company reported an increase in depreciation costs for mining equipment, which increased by $0.6 million compared to last year’s figures. In addition, the commercial, General and administrative expenses of Riot Blockchain for the first quarter of this year increased by 18%, when compared with the same period last year, while legal expenses decreased by $0.3 million.
Riot Blockchain explains this by saying that it no longer has to pay legal fees related to the investigation of the company, which was launched by the SEC in August 2018. The company attracted the attention of the Commission because of the name change from Bioptix to Riot Blockchain, the transition to a new business model related to blockchain, and a sharp increase in its share price.
Recall that in March 2019, Riot Blockchian planned to launch a regulated cryptocurrency exchange in the United States-RiotX. However, the firm later decided to suspend development in order to focus on mining before halving Bitcoin, which occurred yesterday.