Bitcoin BTC/USD miner Riot Blockchain REVOLT recorded a $99.8 million impairment loss on its BTC holdings.
What happened: Riot shares fell 6% on Tuesday after the company reported second-quarter financial results, data from Gasoline Pro.
The second quarter earnings report was filed late as the company needed additional time to calculate how the Bitcoin price decline and unfavorable macroeconomic conditions impacted its financial statements.
See also: WHAT IS BITCOIN MINING?
Riot reported total sales of $72.9 million and produced 1,395 BTC for the quarter in a filing with the SEC on Monday.
Despite reporting a “strengthened financial condition” with a 47% increase in mining revenue and a 112% increase in total revenue compared to the same period last year, the Company reported a net loss of $366 million in the second quarter compared to a net income of 19, $3 million in second quarter Q1, 2021.
“Net loss for the quarter was negatively impacted by a $349.1 million non-cash accounting impairment of goodwill and a $99.8 million non-cash accounting impairment on Bitcoin,” Riot said in the Submission.
The bitcoin miner also reported an unrealized loss of $4.8 million on marketable stocks – partially offset by a $60.9 million increase in fair value on derivative assets, an $8.6 million equipment sale dollars and a profit of $14.4 million from the sale of bitcoin.
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