Newly Transitioned Bitcoin Mining Company, Riot Blockchain, Posts Over $50 Million Loss In 2018
Riot Blockchain Records $58 Million Loss For 2018
Since the bear market began, several firms across the crypto and Blockchain industry have reported significant losses. However, the section of the industry that seems to have been hit the worst in the mining sector with many firms closing down, letting go of their staff, trying to sell off inventory and reporting significant losses.
One of the latest mining firms to report losses for the year 2018 is Riot Blockchain, which was formerly Biotechnology company, who released their financial statement on April 2, 2019. The financial statement in question shows that the firm sustained losses of about $58 million for 2018.
Still In Business
While it would be easy to assume that the losses were as a result of just the bear market, the notes of the statement paint a different picture.
According to the notes, the losses that have been sustained were as a result of a number of other factors.
“The net loss was largely attributable to the noncash aggregate impairments, depreciation, amortization, and stock-based compensation expenses of approximately $45.2 million,”
the statement says.
It was also explained that despite the Bitcoin price crash, the company enjoyed a Positive gross margin of 33% before depreciation, amortization, and impairment. In terms of revenue, the company generated a total of $7.7 million in revenue on the production of 1,081 Bitcoins (including Bitcoin Cash as converted) and 3,023 Litecoins for the year. Other achievements for the year include the establishment of steady-state mining of cryptocurrencies at an approximately 8,000-miner facility in Oklahoma City commencing in June 2018.
In terms of assets, the company has cash and digital currencies totaling $1.6 million as well as no long-term debt as of now.
Dealing With The Law
An update was given about the ongoing investigation being carried out by the Securities and Exchange Commission investigation into the company. The firm received a subpoena in April 2018 and says that they are cooperating with the authorities regarding the matter. It has been reported that the subpoena had to do with their adding of the word ‘Blockchain’ to their name.
Riot Blockchain is also in the process of developing RiotX, their own Cryptocurrency Exchange and announced that they have partnered with Shift Markets, Ltd. as a provider.
In terms of financing, Riot Blockchain has been able to secure $3 million in bridge financing from a syndicate of lenders.