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  "documentTitle": "Riot Platforms, Inc. (RIOT)",
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  "authorName": "Kerrisdale Capital",
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  "presentationDate": "2024-06-01 00:00:00",
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  "notes": "Includes a quote from a senior industry executive criticizing the sector's focus on growth over efficiency.",
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      "text": "The graver economic issue for public companies is (and always has been) below the gross profit line, where significant non-mining related corporate costs and the constant need to invest in hardware raises the all-in cost to mine bitcoin to a level where nearly all publicly traded miners are effectively unprofitable.",
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      "text": "hashprice: $56 PH/s/day",
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      "text": "Executives at Riot's peer, Marathon Digital, have tried to defend the relevance of bitcoin mining stocks versus bitcoin ETFs by comparing its shares to that of oil and gold producers.",
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      "text": "Note, when miner management teams describe their cost to mine, they generally focus solely on power costs or incremental cash costs. While important, limiting discussion of unit economics to these items is highly misleading.",
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      "text": "Riot's diminished scarcity value as a “bitcoin proxy” does not appear lost on the market. Despite bitcoin advancing 74% YTD, shares of Riot are down -37%.",
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      "text": "As the name of the event implies, April’s halving of block rewards resulted in the profitability of mining being cut in half overnight. After averaging ~$108 PH/s/day in March, hashprices fell as low as $45 PH/s/day by the end of April.",
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      "text": "The public market guys, some of them are playing the momentum game and others have no idea what they’re investing in. When you watch the Q2 numbers come out in July and if we stay at kind of BTC $50-$70k range the music is going to end here...",
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      "text": "The public market guys, some of them are playing the momentum game and others have no idea what they’re investing in. When you watch the Q2 numbers come out in July and if we stay at kind of BTC $50-$70k range the music is going to end here… People are going to start to sell out of these stocks and realize that they [publicly listed miners] made the wrong investment decision over the years, prioritizing growth over operational efficiencies. — Senior executive, leading provider of products and services to bitcoin mining industry",
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      "kind": "title",
      "text": "Challenged Mining Economics Post-Halving",
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