Loading...
01/11 04:05
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call summary and Q&A indicate strong financial performance, strategic acquisitions, and promising data center developments, with positive guidance and stable cost management. The market strategy and shareholder return plans are well-received, despite some uncertainties in power deals and legislative impacts. The company's focus on expanding data center capacity and maintaining a strong Bitcoin mining position further supports a positive outlook. Given the market cap, the stock is likely to see a moderate positive reaction, falling into the 'Positive' category (2% to 8%).
Self-mining hash rate Increased from 33.7 EH/s to 35.4 EH/s, representing a 5% increase over the quarter. This was achieved while the global hash rate rose by 9%.
Bitcoin production Produced 1,426 Bitcoin in Q2 2025, a slight decrease from 1,530 Bitcoin in the prior quarter. The decrease was due to the global network hash rate growing faster than Riot's deployed hash rate.
Total revenue $153 million in Q2 2025, a 5% decrease from $161.4 million in the previous quarter. The decline was primarily driven by lower Bitcoin production due to the global hash rate increase.
Gross profit $70.3 million in Q2 2025, compared to $73.6 million in the prior quarter. Gross margin remained flat at 46%.
Net income $219.5 million or $0.65 per share in Q2 2025, compared to a net loss of $296.4 million or $0.90 per share in the prior quarter. This was primarily driven by mark-to-market adjustments due to Bitcoin price appreciation and marketable securities.
Non-GAAP adjusted EBITDA $495.3 million in Q2 2025, compared to a loss of $176.3 million in the prior quarter. This included $470.8 million in unrealized gain on Bitcoin held.
Bitcoin mining revenue $140.9 million in Q2 2025, slightly down from $142.9 million in the prior quarter. The gross margin for Bitcoin mining increased to 50% from 48%, driven by higher Bitcoin prices.
Direct cost to mine Bitcoin $48,992 per Bitcoin in Q2 2025, with power costs accounting for $37,767 (77%) and non-power costs at $11,225 (23%). Non-power costs increased due to property tax assessments.
Engineering business revenue $10.6 million in Q2 2025, a 14% decrease from $13.9 million in the prior quarter. The decrease was attributed to lower intercompany purchases.
Data Center Development: Riot Platforms is focusing on building high-performance compute data centers as a new capability. This includes hiring Jonathan Gibbs as Chief Data Center Officer and acquiring additional land to expand their Corsicana site to 858 acres.
Bitcoin Mining: Riot increased its self-mining hash rate to 35.4 EH/s, produced 1,426 Bitcoin in Q2, and reported Bitcoin mining revenue of $140.9 million. They are also upgrading their Rockdale facility for enhanced Bitcoin mining.
Power Portfolio Utilization: Riot is strategically utilizing its power portfolio for both Bitcoin mining and data center development, aiming to maximize the value of its megawatts.
Market Positioning: Riot is leveraging its significant scale of readily available power in high-demand jurisdictions like Dallas and Austin to capitalize on growing demand for data centers.
Operational Efficiency: Riot achieved a year-over-year hash rate utilization increase from 61% to 87%, positioning itself among the most efficient operators in the industry.
Cost Management: Direct cost to mine Bitcoin was $48,992, with power costs accounting for 77%. Riot is focusing on reducing costs and improving operational efficiency.
Strategic Shift to Data Centers: Riot is transitioning from Bitcoin mining to data centers as a long-term strategy, driven by higher valuation multiples and attractive economics of data center leases.
Expansion of Power Assets: Riot is expanding its power assets and strategically shifting capacity towards data centers while maintaining Bitcoin mining operations where advantageous.
Transition from Bitcoin Mining to Data Centers: The pace of transition from Bitcoin mining to data centers is influenced by customer demand trends, availability of financing, and the general data center market. This creates uncertainty in execution and potential delays in achieving strategic goals.
Global Bitcoin Network Hash Rate Growth: The global hash rate is growing faster than Riot's self-mining hash rate, leading to reduced Bitcoin production and revenue. This could impact the company's financial performance if the trend continues.
Direct Costs of Bitcoin Mining: Direct costs to mine Bitcoin, including power and non-power costs, have increased. Property tax assessments and other non-power costs have risen, potentially reducing profitability.
Litigation Expenses: Litigation expenses remain high, with $14.3 million incurred in the second quarter. While efforts are being made to reduce these costs, they remain a financial burden.
Data Center Development Challenges: The footprint of the Corsicana site may complicate the full utilization of its power availability for data center use, potentially increasing development costs and delaying timelines.
Power Market Constraints: Lead times to procure power in key markets like Dallas and Austin are significant, ranging from 36 to 42 months. This could delay the company's ability to capitalize on its data center strategy.
Dependence on Bitcoin Price: The company's financial performance is highly sensitive to Bitcoin price fluctuations, which directly impact revenue and profitability.
Capital Expenditure Requirements: Significant capital expenditures are required for data center development and Bitcoin mining upgrades. While these are funded through 2025, they represent a financial risk if market conditions change.
Data Center Development: Riot is aggressively pursuing the development of its data center business, with plans to transition power capacity from Bitcoin mining to data centers based on customer demand, financing availability, and market conditions. The company aims to utilize its 600 megawatts of power at Corsicana for high-performance computing data centers, with 400 megawatts expected online in Q1 2026 and the remaining 200 megawatts in the second half of 2026.
Hash Rate Growth: Riot has raised its Q4 2025 hash rate forecast to 40 exahash, representing a 26% year-over-year growth. The company also provided an initial Q1 2026 hash rate forecast of 45 exahash, aiming to maintain a 4% share of the global Bitcoin network.
Capital Expenditures: Riot plans to fund its 2025 capital expenditures fully with its current cash reserves, including investments in new Bitcoin miners and data center development.
Market Dynamics and Power Availability: Riot anticipates a long-term gap between power demand and supply, particularly in high-demand markets like Dallas and Austin. The company is positioned to capitalize on this with its fully permitted and readily available power capacity.
Strategic Land Acquisitions: Riot has acquired additional land around its Corsicana site, now totaling 858 acres, to ensure flexibility for future data center development and to accommodate tenant requirements.
The selected topic was not discussed during the call.
The earnings call reveals a strategic focus on data center development and hash rate growth, supported by strong financial metrics like fully funded capital expenditures. The Q&A section highlights management's confidence in securing tenants and leveraging power capacity, although some responses lacked specifics. The company's strategic land acquisitions and ability to adapt to market demand are promising. Despite the lack of precise guidance, the overall sentiment is positive due to the strategic initiatives and market positioning, suggesting a stock price increase in the short term.
The earnings call summary and Q&A indicate strong financial performance, strategic acquisitions, and promising data center developments, with positive guidance and stable cost management. The market strategy and shareholder return plans are well-received, despite some uncertainties in power deals and legislative impacts. The company's focus on expanding data center capacity and maintaining a strong Bitcoin mining position further supports a positive outlook. Given the market cap, the stock is likely to see a moderate positive reaction, falling into the 'Positive' category (2% to 8%).
While Riot reported a significant net loss and a negative EBITDA, the revenue and gross profit showed improvement, driven by increased Bitcoin production. The Q&A revealed robust demand for AI/HPC opportunities and positive feedback on the Corsicana site, but management's vague responses on key issues like backup generation and project financing raised concerns. The strategic focus on AI/HPC and vertical integration could be positive long-term, but short-term sentiment remains cautious due to financial losses and management's lack of clarity.
The earnings call summary reflects a mixed sentiment. Financial performance shows strong revenue growth and improved margins, but the significant net loss due to mark-to-market adjustments negatively impacts sentiment. Product development and market strategy are promising with AI/HPC opportunities and a strong demand outlook. However, the Q&A reveals uncertainties about capital projects and financing, adding risk. The market cap suggests moderate price sensitivity. Overall, the sentiment is neutral, balancing positive revenue and strategic developments against financial losses and uncertainties.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
