The US-based mining company has listed over 13 factors that could jeopardize its future earnings from mining activities.
In its latest annual report, Riot Platforms mentioned potential factors that could compromise its profitability in the future. In particular, the scarcity of semiconductor chips coupled with increasing demand and a growing number of environmental regulations in the United States could pose a threat to the company’s profitability.
Last December, the company purchased 66,560 miners from MicroBT at a cost of $291 million, marking the largest order ever placed by the company. Riot anticipates continuing to incur higher costs for the acquisition and installation of ASICs until the semiconductor crisis is resolved.
Furthermore, a particularly environmentally–focused agenda by the United States government could present additional challenges for the company. New laws and regulations regarding climate change could impose significant expenses on the company and its suppliers, potentially causing Riot to lose a competitive edge against its competitors located in other parts of the world.
An increasingly competitive sector
The company then emphasized the importance of continuing its growth in terms of hash rate given the competitiveness of the sector:
“To compete in this highly competitive industry, we believe we will need to continue to acquire new miners, both to replace those lost to ordinary wear-and-tear and other damage and to increase our hash rate to keep up with a growing global network hash rate.”
