Riot Platforms, Inc. (RIOT) came out with a quarterly loss of $0.90 per share versus the Zacks Consensus Estimate of a loss of $0.25. This compares to earnings of $0.81 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -260%. A quarter ago, it was expected that this company would post a loss of $0.27 per share when it actually produced earnings of $0.44, delivering a surprise of 262.96%.Over the last four quarters, the company h ...

Financial Data and Key Metrics Changes - Riot reported total revenue of $161.4 million for Q1 2025, a 13% increase from $142.6 million in the previous quarter [14] - Gross profit for Q1 2025 was $73.6 million, up from $55.7 million in the prior quarter, resulting in a gross margin of 46%, compared to 39% previously [14] - Net loss for Q1 2025 was $296.4 million, or $0.90 per share, compared to a net income of $136.4 million, or $0.43 per share in the prior quarter [16] - Non-GAAP adjusted EBITDA for Q1 2025 was negative $176.3 million, compared to positive $296.3 million in the previous quarter [15] Business Line Data and Key Metrics Changes - Riot increased its self-mining hash rate from 31.5 exahash to 33.7 exahash, a 7% increase, while global hash rate rose by 10% [12] - Bitcoin mining revenue totaled $142.9 million in Q1 2025, a 13% increase from $126.3 million in the prior quarter [16] - Engineering revenue increased by 20% to $13.9 million in Q1 2025, compared to $11.6 million in the previous quarter [18] Market Data and Key Metrics Changes - Riot ended Q1 2025 holding 19,223 Bitcoin, an 8% increase from 17,722 Bitcoin at the end of 2024 [13] - The price of Bitcoin at the end of Q1 2025 was $82,534, down from $93,354 at the end of Q4 2024, leading to a mark-to-market adjustment of $271.2 million [16] Company Strategy and Development Direction - The acquisition of Rhodium's assets aims to enhance Riot's hashrate capacity and reduce operating losses and litigation costs [9][20] - The company is focusing on developing its AI HPC data center business, with significant progress made in land acquisitions and infrastructure development [11][24] - Riot's strategy includes maintaining a strong balance sheet while exploring various financing options to fund growth [10][61] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand for data center capacity, particularly for AI applications, with a projected need for 30 gigawatts by 2030 [42] - The company aims to maximize the value of its assets and is actively pursuing partnerships with hyperscalers [30][82] - Management highlighted the importance of prudent financial management and operational efficiency in navigating market challenges [10][30] Other Important Information - Riot's cash SG&A expenses for Q1 2025 were $41.9 million, including one-time litigation expenses [16] - The company is actively working on securing additional fiber capacity and water supply for its Corsicana facility [28] Q&A Session Summary Question: Insights on the large flexible load task force - Management clarified that Riot was not behind the inception of the task force but is involved in public policy efforts [33] Question: Economics of capital projects - Management indicated it is too early to determine specific capital expenditure targets but is focused on maximizing shareholder value [36] Question: Demand for AI HPC opportunities - Management noted robust demand for data center capacity and positive feedback from hyperscalers [42] Question: Financing options for projects - Management stated they are exploring various financing options to maximize capital efficiency [61] Question: Backup generation and power infrastructure - Management emphasized the importance of backup generation and their engineering division's expertise in this area [50] Question: Cash OpEx trends post-Rhodium settlement - Management confirmed guidance for cash SG&A remains at $30 to $33 million per quarter, excluding one-time expenses [87] Question: Milestones for HPC development - Management highlighted the importance of building internal expertise and securing leases as key milestones [81]

PART I - FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The company reported a net loss of $296.4 million for Q1 2025, a significant reversal from prior year's net income, primarily due to a $208.0 million loss on Bitcoin fair value, despite doubled revenues [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $3.72 billion as of March 31, 2025, from $3.94 billion at December 31, 2024, mainly due to reductions in cash and Bitcoin fair value, with total liabilities and stockholders' equity also declining Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $163,719 | $277,860 | | Bitcoin | $1,586,545 | $1,654,468 | | Property and equipment, net | $1,307,055 | $1,338,787 | | **Total assets** | **$3,719,017** | **$3,935,307** | | Total current liabilities | $139,302 | $160,385 | | Long-term debt, less current portion | $584,999 | $584,311 | | **Total liabilities** | **$774,179** | **$791,622** | | **Total stockholders' equity** | **$2,944,838** | **$3,143,685** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q1 2025, Riot reported a net loss of $296.4 million, or ($0.90) per share, a reversal from Q1 2024's net income, primarily due to a significant negative swing in Bitcoin fair value, despite a 103.5% increase in total revenue Q1 2025 vs Q1 2024 Statement of Operations (in thousands, except EPS) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total revenue | $161,387 | $79,296 | | Total costs and expenses | $395,261 | ($124,646) | | Operating income (loss) | ($233,874) | $203,942 | | Change in fair value of Bitcoin | ($208,040) | $234,080 | | **Net income (loss)** | **($296,367)** | **$211,777** | | **Diluted net income (loss) per share** | **($0.90)** | **$0.81** | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities increased to $122.1 million in Q1 2025, while net cash used in investing activities decreased significantly, and net cash provided by financing activities sharply declined due to lower ATM offering proceeds Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($122,060) | ($57,853) | | Net cash used in investing activities | ($59,227) | ($194,493) | | Net cash provided by financing activities | $67,857 | $343,674 | | **Net (decrease) increase in cash** | **($113,430)** | **$91,328** | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the company's vertically-integrated Bitcoin mining business, its evaluation of AI/HPC power capacity, key acquisitions, Bitcoin holdings of 19,223 valued at $1.59 billion, derivative power purchase agreements, and significant miner purchase commitments - The company is a vertically-integrated Bitcoin mining company with large-scale facilities in Texas and Kentucky, and is formally evaluating the use of approximately **600 MW** of power capacity at its Corsicana Facility for AI/HPC applications[29](index=29&type=chunk)[30](index=30&type=chunk)[32](index=32&type=chunk) - In 2024, Riot acquired Block Mining and E4A Solutions to enhance its vertical integration strategy, and in April 2025, acquired assets from Rhodium for **$185.0 million**, terminating legacy hosting contracts[31](index=31&type=chunk)[67](index=67&type=chunk) Bitcoin Holdings as of March 31, 2025 | Metric | Quantity | Fair Value (in thousands) | | :--- | :--- | :--- | | Balance as of Dec 31, 2024 | 17,722 | $1,654,468 | | Bitcoin mined in Q1 2025 | 1,530 | $142,859 (revenue) | | Change in fair value in Q1 2025 | — | ($208,040) | | **Balance as of Mar 31, 2025** | **19,223** | **$1,586,545** | - The company's Power Purchase Agreements (PPAs) are accounted for as derivative assets, with a combined fair value of **$191.4 million** as of March 31, 2025[100](index=100&type=chunk)[113](index=113&type=chunk)[118](index=118&type=chunk) - As of March 31, 2025, the company has a remaining commitment of **$54.0 million** for the purchase of miners from MicroBT, expected to be paid during 2025[170](index=170&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=49&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the 103.5% year-over-year revenue growth to higher Bitcoin prices and increased Engineering segment activity, with deployed hash rate growing to 33.7 EH/s, while the cost to mine one Bitcoin rose to $43,808, and liquidity is managed through ATM stock offerings [Business Overview and Trends](index=49&type=section&id=Business%20Overview%20and%20Trends) Riot operates as a vertically-integrated Bitcoin mining company with major facilities in Texas and Kentucky, actively evaluating 600 MW of Corsicana power capacity for AI/HPC uses, and increased its total deployed hash rate capacity to 33.7 EH/s - Riot is a vertically-integrated Bitcoin miner with a total developed power capacity of **1,165 MW** across its facilities in Texas and Kentucky[220](index=220&type=chunk)[222](index=222&type=chunk) - The company is formally evaluating the feasibility of developing **600 MW** of remaining power capacity at its Corsicana Facility for AI/HPC uses to maximize asset potential[226](index=226&type=chunk)[227](index=227&type=chunk) - Total deployed hash rate capacity increased by **6.9%** to **33.7 EH/s** as of March 31, 2025, from **31.5 EH/s** at the end of 2024[228](index=228&type=chunk) [Results of Operations](index=61&type=section&id=Results%20of%20Operations) Total revenue for Q1 2025 was $161.4 million, up from $79.3 million in Q1 2024, driven by higher Bitcoin prices and Engineering revenue, but significantly increased costs and a $208.0 million loss on Bitcoin fair value led to a substantial net loss - Bitcoin Mining revenue increased to **$142.9 million** in Q1 2025 from **$71.4 million** in Q1 2024, primarily due to the average price of Bitcoin rising to **$93,385** from **$52,343**[268](index=268&type=chunk) - Engineering revenue grew to **$13.9 million** in Q1 2025 from **$4.7 million** in Q1 2024, partly due to the E4A Solutions acquisition and accelerated project completions[269](index=269&type=chunk) - Depreciation and amortization expense increased by **$45.6 million** year-over-year to **$77.9 million**, mainly due to the Corsicana Facility coming online and the deployment of additional miners[274](index=274&type=chunk) Reconciliation of Net Income (Loss) to Adjusted EBITDA (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income (loss) | ($296,367) | $211,777 | | Depreciation and amortization | $77,926 | $32,343 | | EBITDA | ($219,093) | $236,293 | | **Adjusted EBITDA** | **($176,337)** | **$245,729** | [Liquidity and Capital Resources](index=64&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, Riot had net working capital of $310.3 million, including $163.7 million in cash, with its primary cash source being ATM equity offerings which generated $68.4 million in Q1 2025, and a remaining $54.0 million commitment for miner purchases - The company's primary source of cash is its ATM offering program, which raised net proceeds of **$68.4 million** in Q1 2025 and **$345.7 million** in Q1 2024[284](index=284&type=chunk) - As of March 31, 2025, the company had **$310.3 million** in net working capital, including **$163.7 million** in cash and cash equivalents[285](index=285&type=chunk) - A significant contractual commitment is the remaining **$54.0 million** for the purchase of MicroBT miners, expected to be paid during 2025[287](index=287&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=69&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company identifies its primary market risks as Bitcoin price volatility and power price fluctuations, with a hypothetical 10% change in Bitcoin price impacting net income by $158.6 million, and a 10% change in future power prices impacting net income by $47.2 million Bitcoin Price Sensitivity Analysis (Q1 2025) | Scenario | Impact on Net Income (in thousands) | | :--- | :--- | | 10% Increase in Price of Bitcoin | $158,634 | | 10% Decrease in Price of Bitcoin | ($158,634) | Power Price Sensitivity Analysis (Q1 2025) | Scenario | Impact on Net Income (in thousands) | | :--- | :--- | | 10% Increase in Future Power Prices | $47,240 | | 10% Decrease in Future Power Prices | ($47,240) | [Controls and Procedures](index=71&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2025, and is integrating the internal controls of recently acquired Block Mining and E4A Solutions for full inclusion by year-end 2025 - Management concluded that the company's disclosure controls and procedures were **effective** as of March 31, 2025[319](index=319&type=chunk) - The company is integrating the internal controls of the newly acquired Block Mining and E4A Solutions, with full inclusion into the internal control scope planned for year-end 2025[320](index=320&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=73&type=section&id=Item%201.%20Legal%20Proceedings) This section incorporates by reference detailed disclosures on legal proceedings from Note 17, covering disputes with Green Revolution Cooling, Northern Data, and the recent settlement with legacy hosting customer Rhodium - The company refers to Note 17 for details on its legal proceedings, which cover disputes with Green Revolution Cooling, Northern Data, and legacy hosting customers[322](index=322&type=chunk)[176](index=176&type=chunk) [Risk Factors](index=73&type=section&id=Item%201A.%20Risk%20Factors) In addition to existing risks, the company highlights a new risk related to changes in U.S. trade policy, where tariffs could materially impact the cost or availability of essential mining hardware and construction materials - A new risk factor has been added concerning changes in U.S. trade policy, specifically the potential for tariffs to adversely impact the procurement of mining hardware and other critical components[324](index=324&type=chunk)[325](index=325&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=73&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q1 2025, the company repurchased 40,552 shares of common stock at an average price of $11.93 per share, surrendered by employees to satisfy tax obligations from restricted stock award vesting Common Stock Repurchases Q1 2025 | Period | Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Jan 2025 | 16,716 | $13.46 | | Feb 2025 | 17,270 | $12.27 | | Mar 2025 | 6,566 | $7.12 | | **Total** | **40,552** | **$11.93** | [Other Information](index=73&type=section&id=Item%205.%20Other%20Information) The company reported that no directors or officers adopted, modified, or terminated any Rule 10b5-1 trading plans or non-Rule 10b5-1 trading arrangements for company securities during Q1 2025 - No directors or officers adopted, modified, or terminated any Rule 10b5-1 trading plans during the first quarter of 2025[327](index=327&type=chunk) [Exhibits](index=76&type=section&id=Item%206.%20Exhibits) This section provides an index of all exhibits filed with the quarterly report, including corporate governance documents, CEO and CFO certifications, and financial statements in Inline XBRL format - Lists all exhibits filed with the Form 10-Q, including CEO/CFO certifications and XBRL data files[330](index=330&type=chunk)

Exhibit 10.1 CERTAIN INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL PURCHASE AND SALE AGREEMENT AMONG Rhodium Renewables LLC, Rhodium Technologies LLC, Rhodium 30MW LLC, Rhodium 2.0 LLC, Rhodium 10MW LLC, Rhodium Encore LLC, AND Jordan HPC LLC AS SELLERS AND Whinstone US, Inc., a Delaware corporation AS PURCHASER 4913-9826-8974.23 STRICTLY PRIVATE AND CONFIDENTIAL DRAFT F ...

NASDAQ: RIOT Riot Platforms (NASDAQ: RIOT) Q1 2025 Update May 1, 2025 Forward Looking Statements Statements in this presentation that are not statements of historical fact are forward-looking statements that reflect management's current expectations, assumptions, and estimates of future performance and economic conditions, and are not guarantees of future performance or actual results. Such statements are made in reliance on the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended ...

Core Insights - Riot Platforms, Inc. reported a record total revenue of $161.4 million for Q1 2025, a significant increase from $79.3 million in Q1 2024, primarily driven by a $71.5 million rise in Bitcoin mining revenue [9] - The company produced 1,530 bitcoins in Q1 2025, compared to 1,364 bitcoins in the same period of 2024 [9] - The average cost to mine one bitcoin, excluding depreciation, was $43,808 in Q1 2025, up from $23,034 in Q1 2024, largely due to the block subsidy halving event and a 41% increase in the average global network hash rate [9] Financial Performance - Bitcoin mining revenue reached $142.9 million in Q1 2025, compared to $71.4 million in Q1 2024, driven by higher average bitcoin prices and increased operational hash rate [9] - Engineering revenue for the quarter was $13.9 million, up from $4.7 million in the same period last year, now including results from E4A Solutions, LLC, acquired in December 2024 [9] - The company maintained a strong financial position with $310.3 million in working capital, including $163.7 million in unrestricted cash and $71.0 million in marketable equity securities [9] Strategic Developments - Riot acquired Rhodium's mining operations and tangible property at the Rockdale Facility, repurposing 125 MW of power capacity for self-mining operations, eliminating nearly $15 million in operating losses from a legacy contract in 2024 [3] - The company is advancing its AI/HPC data center business, with a feasibility study indicating the Corsicana site as an attractive asset for data center tenants, and is enhancing the site with additional development land and improved connectivity [4] - Construction on a substation at the Corsicana Facility is ongoing, expected to bring a total of 1.0 GW of power capacity online by early 2026 [4]

Financial Data and Key Metrics Changes - Riot reported total revenue of $161.4 million for Q1 2025, a 13% increase from $142.6 million in the previous quarter [13] - Gross profit for Q1 2025 was $73.6 million, up from $55.7 million in the prior quarter, resulting in a gross margin increase from 39% to 46% [13] - Net loss for Q1 2025 was $296.4 million, or $0.90 per share, compared to a net income of $136.4 million, or $0.43 per share in the prior quarter [14] - Non-GAAP adjusted EBITDA for Q1 2025 was negative $176.3 million, a significant decrease from positive $296.3 million in the previous quarter [13][14] Business Line Data and Key Metrics Changes - Riot increased its self-mining hash rate from 31.5 exahash to 33.7 exahash, a 7% increase, while global hash rate rose by 10% [11] - Bitcoin mining revenue totaled $142.9 million in Q1 2025, a 13% increase from $126.3 million in the prior quarter [14] - Engineering revenue increased by 20% to $13.9 million in Q1 2025, compared to $11.6 million in the previous quarter [16] Market Data and Key Metrics Changes - Riot ended Q1 2025 holding 19,223 Bitcoin, an 8% increase from 17,722 Bitcoin at the end of 2024 [12] - The price of Bitcoin at the end of Q1 2025 was $82,534, down from $93,354 at the end of Q4 2024, leading to a mark-to-market adjustment of $271.2 million [14] Company Strategy and Development Direction - The acquisition of Rhodium's assets aims to enhance Riot's hashrate capacity and reduce operating losses and litigation costs [7][19] - The company is focusing on developing its AI HPC data center business, with significant progress in land acquisitions and infrastructure development [10][20] - Riot's strategy includes maintaining a strong balance sheet while exploring various financing options to fund growth [8][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a Bitcoin yield of 7% year-to-date and emphasized the importance of operational efficiency [12][30] - The company is optimistic about the demand for data center capacity, particularly in the AI sector, and is actively engaging with potential tenants [42][43] - Management highlighted the importance of securing financing partners to support the development of the AI HPC data center [46][91] Other Important Information - Riot's capital expenditures in Q1 2025 totaled $48.9 million, primarily for the expansion of its Corsicana facility [20] - The company is actively pursuing additional land acquisitions to enhance its data center development capabilities [26][70] Q&A Session Summary Question: Insights on the large flexible load task force - Management clarified that Riot was not behind the inception of the task force but is involved in public policy efforts to support regulatory success [33][34] Question: Economics of capital projects - Management indicated it is too early to determine specific capital expenditure targets but is focused on maximizing shareholder value [36] Question: Demand for AI HPC opportunities - Management noted robust demand for data center capacity and positive feedback from hyperscalers regarding power delivery [42][43] Question: Financing options for AI HPC projects - Management stated they are exploring various financing structures to maximize value and are well-positioned with potential financing partners [46][91] Question: Impact of tariffs on power infrastructure - Management acknowledged that tariffs could impact costs for certain components but emphasized domestic production for critical switchgear [78] Question: Milestones for AI HPC development - Management highlighted the importance of building internal expertise and completing a basis of design for potential data centers as key milestones [81][82]

Core Viewpoint - The earnings season is highlighting three crypto-adjacent companies: Riot Platforms Inc, MicroStrategy Inc, and Block Inc, each with distinct market performances and expectations ahead of their earnings reports [1][6]. Group 1: Riot Platforms Inc - Riot stock has experienced a modest 4.91% increase over the past month but remains down over 24% year-to-date and nearly 20% over the past year [1]. - The stock is trading below its 200-day simple moving average (SMA) and just above its 50-day SMA, indicating a strongly bearish trend, although there are signs of buying pressure suggesting potential interest from bargain-hunters [2]. Group 2: MicroStrategy Inc - MicroStrategy stock has shown remarkable performance, up 285% over the past year and 32% year-to-date [3]. - The stock is trading above all key moving averages, including the 200-day SMA of $265.89, with its current price at $396.60, indicating strong bullish signals and one of the cleanest bullish charts in the bitcoin ecosystem [4]. Group 3: Block Inc - Block stock is down 31.87% year-to-date but has gained 6.66% in the past month, indicating some recovery [4]. - The stock is trading above the eight-day and 20-day SMAs, showing bullish signs, but remains significantly below the 200-day SMA of $72.07, suggesting that while investor sentiment is improving, there is still technical work needed [5]. Group 4: Earnings Expectations - All three companies are set to report earnings after the market close, with varying narratives: MicroStrategy is priced for perfection, Riot is attempting to reverse its bearish trend, and Block is looking to improve its market position [6].

Core Insights - Riot Platforms, Inc. (RIOT) is set to report its first-quarter 2025 results on May 1, with a history of impressive earnings surprises, averaging 125.8% over the past four quarters [1] Financial Expectations - The Zacks Consensus Estimate for RIOT's revenue in Q1 2025 is $157.9 million, indicating a year-over-year increase of 99.1%. The consensus estimate for loss is 87 cents per share, compared to earnings of 34 cents per share in the same quarter last year [2] Growth Opportunities - Riot Platforms aims to leverage opportunities in the artificial intelligence and high-performance computing sectors by utilizing its power assets, which is expected to enhance its infrastructure growth. The acquisition of E4A Solutions is anticipated to strengthen the company's engineering business and drive revenue [3] Industry Demand - Major hyperscale computing companies like Meta, Alphabet, and Microsoft are increasing their high-performance computing capacity, which requires significant power supply. The industry anticipates a demand increase of 30 gigawatts over the next five years, which is expected to benefit RIOT in the long term [4] Earnings Prediction - Current models predict an earnings beat for Riot Platforms, supported by a positive Earnings ESP of +32.00% and a Zacks Rank of 3 (Hold), which enhances the likelihood of exceeding earnings expectations [5]

Acquisition immediately terminates unprofitable legacy hosting contracts with Rhodium Riot assumes Rhodium's 125 MW of power capacity and existing operating assets at the Rockdale Facility 100% of the Rockdale Facility power capacity now dedicated to Riot Platforms and its subsidiariesCASTLE ROCK, Colo., April 28, 2025 /PRNewswire/ -- Riot Platforms, Inc. (NASDAQ: RIOT) ("Riot" or "the Company"), an industry leader in vertically integrated Bitcoin mining, is pleased to announce that Whinstone US, Inc. ("Wh ...