Riot Blockchain Drops After Missing Q3 Revenue, Earnings Estimates

Shares of Riot Blockchain (RIOT) were down almost 11% in early trading on Tuesday after the bitcoin miner’s third quarter revenue and earnings missed average analyst estimates, according to FactSet data.

The bitcoin miner’s third quarter revenue was $64.8 million, compared to the consensus analyst estimate of $67.1 million. Earnings per share were a net loss of $0.16, while analysts expected a profit of $0.35.The net loss in the quarter was “significantly impacted” by non-cash stock-based compensation expense of $36 million and a non-cash, unrealized loss of $11.2 million on marketable equity securities, the company said in a statement.Riot’s mining revenue margin, or mining revenues net of the cost of those revenues, was 76% in the third quarter versus 47% in the same period last year.The miner said it increased bitcoin production by 482% to a record 1,292 bitcoin during the quarter, compared to 222 bitcoin during the same quarter a year ago. The miner held 3,995 bitcoins as of Oct. 31.Riot had 27,270 miners deployed as of Oct. 31 and additional 11,500 S19J Pro Antminers are in the process of being shipped.Subsequent to Sept. 30, the company also completed its previously announced at-the-market equity offering of $600 million.The stocks of crypto miners, which are most tied to cryptocurrency prices, were falling after both bitcoin and ether prices were down more than 5% on Tuesday.

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