Riot Platforms: Chip Shortage Can Affect Business

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Due to the ongoing global semiconductor shortage and the need to increase mining productivity, Riot Platforms’ financial condition may be negatively affected, according to the company’s annual report. The report identified over 40 risk factors that could impact various aspects of the business.

The company acknowledged that the current global supply chain crisis and the high demand for computer chips have caused semiconductor shortages, resulting in difficulties for miner production.

As a result, manufacturers have increased their prices, leading to higher costs for Riot. The company expects to incur higher-than-usual costs for the purchase and deployment of equipment until the semiconductor crisis is resolved.

In December, Riot announced its agreement to buy 66,560 miners from MicroBT, which will be installed at a facility in Corsicana, Texas. However, the company relies heavily on immersion cooling, which may pose challenges when used on such a large scale.