Original - Odaily
Author - jk
As of this week, the third-quarter financial reports of major listed companies have been released one after another, which revealed the latest business dynamics and financial trends in the blockchain field. These reports not only reflect the performance of various companies in this field, but also provide us with a unique perspective to observe and analyze the role and impact of blockchain technology in the global economy.
Robinhood: Cryptocurrency-related revenue fell 55% from the previous quarter
In Q3 of 2023, Robinhood’s cryptocurrency trading revenue experienced a significant decline;Revenue related to cryptocurrency trading fell to $23 million, a 55% decrease from the previous quarter, according to data released by the company last Tuesday.Its stock trading revenue also fell during the same period, down 13% month-on-month, but the decline was particularly pronounced in the cryptocurrency space.
Additionally, the companys cryptocurrency trading revenue has fallen 1% to $38 million in the first three months of 2023, before further reducing to $31 million in the second quarter.
Robinhood CEO Vlad Tenev emphasized during last Tuesday’s earnings call that the company is focused on improving the experience for cryptocurrency investors. He said the company will continue to innovate and improve in this area as he sees many positive developments and efforts within the industry. Chief Financial Officer Jason Warnick added that clearer regulation of cryptocurrencies will help Robinhood innovate and grow faster in the space.
CFO Jason Warnick also mentioned that if current levels of securities lending and free credit balances remain unchanged, they expect net interest income in the fourth quarter to be approximately $20 million lower than in the third quarter. However, Robinhood nearly doubled its net interest income to $251 million as it charged more interest on customer loans during the quarter, benefiting from a backdrop of rapid tightening of monetary policy by the U.S. Federal Reserve.
Roblox: Still losing money, but revenue is strong
Robloxs revenue figures, which the company calls bookings, a metric that includes sales and deferred revenue recognized in the quarter, were up 20% year over year. During the same period last year, Roblox had $702 million in pre-orders.
In its financial report for the third quarter of 2023, Roblox announced that its revenue reached $713.2 million, a year-over-year increase of 38%, while pre-orders reached $839.5 million, a year-over-year increase of 20%. In addition to the financials, Roblox reported more than 70 million daily active users, up 20% year over year, and 14.7 million monthly unique paying users, up 14% year over year.
The company generates revenue primarily from sales of its virtual currency, Robux, which players use to dress up their avatars and purchase other premium in-game features. In the quarter ended Sept. 30, the company reported a net loss of $277.2 million. During the same period in 2022, Roblox had a net loss of $297.8 million.
In a letter to shareholders on Wednesday, the company said revenue growth has been strong, particularly in East Asia and Europe, while Roblox has slowed spending growth in key expense categories. The company also noted that average daily active user bookings were $11.96, unchanged from the same period last year.
Following the earnings release, the companys shares rose nearly 15% as it beat analysts expectations.
Roblox Chief Financial Officer Michael Guthrie said the growth in bookings was mainly concentrated in Europe and East Asia. He also mentioned that the company slowed expense growth in most major expense categories, which helped improve margins. Guthrie also said the companys data center in Ashburn is nearing completion, which has lowered capital expenditures. The companys personnel costs, excluding stock-based compensation, rose 22%.
Riot Platforms: Rising Bitcoin price brings revenue surge
According to the financial report data released by the company in Q3, the company achieved total revenue of $51.9 million, an increase from $46.3 million in the same quarter of 2022. This growth was mainly due to a 6% increase in Bitcoin production and an increase in Bitcoin prices, with the average selling price of Bitcoin increasing from US$21,184 per coin in the same period in 2022 to US$28,230, an increase of 33%.
During the quarter, the company mined a total of 1,106 Bitcoins, up from 1,042 in the same period in 2022. The increase in Bitcoin production was mainly due to the companys increase in the number of mining machines during the year, although it was affected by power strategy adjustments and the increase in Bitcoin network difficulty. In the third quarter, the average cost of mining Bitcoin was negative at -$6,141 per Bitcoin, compared with the cost of $8,227 per coin during the same period in 2022.
Bitcoin mining operations brought in $31.2 million in revenue during the quarter, a significant increase from $22.1 million in the same period in 2022, driven by increased Bitcoin production and higher average selling prices. Data center colocation revenue was $5.1 million in the quarter, down from $8.4 million in the same period in 2022, primarily as the company reduced colocation activity as it processed legacy contracts. Engineering Services generated revenue of $15.5 million in the quarter, essentially flat compared to the same period in 2022.
Marathon Digital: Get ready for next year’s Bitcoin halving
In the third quarter of 2023, the company achieved net income of $64.1 million, or $0.35 per diluted share, compared with a net loss of $72.5 million, or $0.62 per diluted share, in the same period last year.
The companys quarterly revenue topped $97.8 million, well above the $12.7 million in the same period in 2022.This significant growth was mainly driven by a 467% increase in Bitcoin production, while the average price of Bitcoin increased by 32% compared to the same period last year.
It recorded $31.7 million in digital asset gains during the quarter as the company sold 66% of its quarterly output of Bitcoin to cover operating costs. However, these gains were partially offset by higher impairments on the carrying value of digital assets of $11.9 million, compared to $1.4 million in the year-ago period. In addition, the quarter specifically benefited from $82.6 million in debt extinguishment proceeds, compared with $29.8 million in proceeds from equipment sales in the prior-year period, $25.0 million in legal reserves, and $39.0 million in impairments resulting from supplier bankruptcies. , none of these will happen again in 2023.
In preparation for next years Bitcoin halving, we took proactive steps during the quarter to strengthen our financial position. The $417 million bond exchange completed in September reduced our long-term debt by 56% and saved our shareholders approximately $101 million in cash. For the first time in two years, we ended the quarter with more cash and Bitcoin than our debt.
Cipher Mining: Still at a net loss
Financial statements show that Cipher Mining Inc (NASDAQ: CIFR ) has a strong asset base. Its total assets reached $416.49 million as of September 30, 2023, down slightly from $418.463 million at the end of the previous year. The companys cash and cash equivalents fell to $33.42 million as of September 30, 2023, from $11.927 million at the end of 2022. The balance sheet also shows that the company has healthy shareholders equity of US$342.687 million.
The company generated $30.304 million in revenue from Bitcoin mining in the three months ended September 30, 2023. However, cost of revenue and operating expenses contributed to an operating loss of $18.196 million in the quarter. Net loss for the quarter was $17.711 million.
Despite the operational success, the company reported a GAAP net loss of $0.07 per diluted share. However, on a non-GAAP basis, excluding certain non-cash items and one-time gains, the company achieved net income of $0.02 per diluted share.
Hut 8: There was a problem with the venue, and the net loss doubled year-on-year.
Toronto, Canada-based Bitcoin mining company Hut 8 reported that due to increased network difficulty, operational issues, and the suspension of some operations,The companys third-quarter revenue fell $14.7 million to $17.0 million,This compares to revenue of $31.7 million in the same period in 2022.
According to a statement on its website, the companys losses increased from 23 million Canadian dollars to 53.6 million Canadian dollars (about 39 million U.S. dollars), more than double the same period last year, and sales fell from 31.7 million U.S. dollars in the same period last year. To 17 million Canadian dollars. The number of Bitcoins mined plummeted from 982 to 330 in the quarter, a drop of approximately 66% compared to the same period in 2022.
According to Coindesk, Hut 8 blamed its production decline in part on issues it encountered at its site in Drumheller, Alta., where “high energy input levels led to miner malfunctions.” Power issues at the Drumheller site were exacerbated by high energy prices in the third quarter, further adding to power curtailments at the site. The venue is currently operating at just 27% of installed hashrate, the company said in its earnings statement. Hut 8 added that the Bitcoin network’s mining difficulty, the suspension of operations at its facility in North Bay, Ontario due to a dispute with an energy provider, and the Ethereum network’s migration from proof-of-work to proof-of-stake are also factors. Factors that reduce production.
Company CEO Jaime Leverton said: “During Q3, Hut 8’s team continued to focus on completing the merger with USBTC, and made substantial progress toward achieving key milestones. We have made important progress in obtaining shareholder approval of the merger and obtaining a final order of the plan of arrangement from the British Columbia Supreme Court. Currently, the U.S. Securities and Exchange Commission (SEC) has confirmed that New Hut’s registration statement is valid. We are working to complete this transaction by the end of the month to create a new organization.
The above data comes from financial reports released by each company, Yahoo Finance, Coindesk and other sources.