Loading...
01/11 04:04
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
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.
Total Revenue $180.2 million, an 18% increase quarter-over-quarter. The increase was driven by growth in Bitcoin mining and engineering revenue.
Net Income $104.5 million or $0.26 per fully diluted share, compared to $219.5 million or $0.58 per fully diluted share in the prior quarter. The decrease was due to lower non-GAAP adjusted EBITDA and other factors.
Non-GAAP Adjusted EBITDA $197.2 million, compared to $495.3 million in the prior quarter. The decline was attributed to changes in operational efficiency and other financial adjustments.
Bitcoin Production 1,406 Bitcoin, compared to 1,426 Bitcoin in the prior quarter. The slight decline was due to an 8% growth in the global hash rate, which exceeded Riot's 3% growth in hash rate deployed, partially offset by improved operating efficiency and utilization rate of 86%.
Power Credits $31 million generated, lowering the net cost of power to $0.032 per kilowatt hour. This was achieved through active employment of Riot's power strategy.
Bitcoin Holdings 19,287 Bitcoin with a market value of $2.2 billion at the end of the quarter.
Direct Cost per Bitcoin $46,324, resulting in a Bitcoin mining gross profit of $95.7 million or 59% gross profit margin.
SG&A Expenses $69.8 million, including $32.9 million in noncash stock-based compensation and $7.5 million in temporary litigation-related costs and advisory fees.
Engineering Business CapEx Savings $23 million in cumulative savings on equipment purchases since the acquisition of ESS Metron.
Data Center Development: Initiated Core & Shell development of the first 2 buildings at Corsicana data center campus, representing 112 megawatts of IT capacity. Construction to begin in Q1 2026.
Land Acquisition: Acquired 67 acres adjacent to Corsicana site for $40 million, enabling full utilization of 1 gigawatt power capacity.
Standardized Design: Completed basis of design for Tier 3 data centers, adaptable to tenant needs, supporting faster procurement and scalability.
Power Portfolio: Riot holds 1.8 gigawatts of fully approved power, primarily in Dallas and Austin, key data center markets.
Bitcoin Mining: Continues to be profitable, generating $160.8 million in Q3 revenue, supporting transition to data center development.
Operational Efficiency: Improved utilization rate to 86% and reduced net power cost to $0.032 per kilowatt hour.
SG&A Management: SG&A remained flat while revenue grew 18% QoQ, demonstrating economies of scale.
Strategic Shift to Data Centers: Transitioning from Bitcoin mining to data center development to maximize power portfolio value.
Vertical Integration: Engineering business provides strategic advantage in manufacturing and procurement, saving $23 million in CapEx to date.
Regulatory and Legal Risks: The company faces potential regulatory and legal challenges, including ongoing litigation costs and the need to comply with evolving regulations in the data center and Bitcoin mining industries. These could impact operational costs and timelines.
Supply Chain Constraints: The development of data centers is heavily reliant on long-lead equipment, which is currently supply-constrained. Delays in procurement could disrupt construction timelines and tenant commitments.
Economic and Market Risks: Economic uncertainties, including fluctuations in Bitcoin prices and global hash rates, could impact the profitability of the Bitcoin mining business, which is a key revenue driver for the company.
Operational Execution Risks: The company is undergoing a significant transformation into a data center-focused business. This involves complex construction projects, tenant acquisition, and operational scaling, all of which carry execution risks.
Competitive Pressures: The data center market is highly competitive, with significant demand for talent and resources. Riot must compete with other players to attract tenants and skilled personnel, which could impact its ability to execute its strategy effectively.
Financial Risks: The company is making substantial capital investments in data center development, which could strain financial resources if revenue generation or tenant acquisition does not meet expectations.
Data Center Development: Riot is initiating the Core & Shell development of the first two buildings at the Corsicana data center campus, representing 112 megawatts of critical IT data center capacity. Construction is planned to begin in Q1 2026, with the first building expected to be completed in Q1 2027. The company plans to develop a total of 1 gigawatt of utility load data center capacity at Corsicana in two phases, with Phase 1 encompassing 504 megawatts and Phase 2 representing 168 megawatts.
Future Leasing and Tenant Commitments: The pace of development in Phase 1 of the Corsicana site will be driven by tenant commitments and leasing progress. Riot is sequencing capital expenditures to maximize power-to-value conversion and will provide cost estimates and timelines for full build-to-suit data centers as leasing discussions progress.
Strategic Shift in Business Model: Riot is transitioning from Bitcoin mining to data center development as the primary focus, aiming to maximize the value of its power portfolio. Over time, the company plans to shift its megawatts from Bitcoin mining to data center use, leveraging its 1.8 gigawatts of fully approved power capacity.
Market Position and Expansion: Riot aims to capitalize on its position in high-demand data center markets, particularly in the Dallas and Austin regions, which account for 1.7 gigawatts of its power capacity. The company anticipates market revaluation as it converts power capacity into contracted data center leases.
Cost and Efficiency Improvements: Riot plans to maintain cost discipline while selectively hiring for its data center business. The company has implemented measures to reduce SG&A expenses and improve operating leverage, aiming for a leaner organization that can scale data center development efficiently.
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.
