For the quarter ended March 2024, Riot Platforms, Inc. (RIOT) reported revenue of $79.3 million, up 8.3% over the same period last year. EPS came in at $0.81, compared to $0.04 in the year-ago quarter.The reported revenue represents a surprise of -13.95% over the Zacks Consensus Estimate of $92.15 million. With the consensus EPS estimate being -$0.21, the EPS surprise was +485.71%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to det ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from: to: Commission file number: 001-33675 RIOT PLATFORMS, INC. (Exact name of registrant as specified in its charter) Nevada 84-1553387 (State or other jurisdic ...

Riot Platforms, Inc. (RIOT) came out with quarterly earnings of $0.81 per share, beating the Zacks Consensus Estimate of a loss of $0.21 per share. This compares to earnings of $0.04 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 485.71%. A quarter ago, it was expected that this company would post a loss of $0.29 per share when it actually produced earnings of $0.48, delivering a surprise of 265.52%.Over the last four quarter ...

Financial Data and Key Metrics - Revenue for Q1 2024 was $79.3 million, an 18% increase YoY, driven by a 131% increase in average Bitcoin prices, offset by a 36% decrease in Bitcoin production [43] - Bitcoin mined in Q1 2024 was 1,364, a 36% decrease YoY due to a significant increase in Bitcoin network difficulty [41] - Net income for Q1 2024 was $211.8 million, compared to $18.5 million in Q1 2023, including a $234.1 million change in the fair value of Bitcoin [46] - Non-GAAP adjusted EBITDA for Q1 2024 was $245.7 million, compared to $81.7 million in Q1 2023 [45] - Power curtailment credits received in Q1 2024 totaled $5.1 million, compared to $3.1 million in Q1 2023 [44] Business Line Data and Key Metrics - Bitcoin mining revenue in Q1 2024 was $74.6 million, including $32 million in hosting revenue, a $26.6 million increase YoY [48] - Engineering business revenue in Q1 2024 was $4.7 million, a $11.4 million decrease YoY due to global supply chain constraints [55] - Bitcoin mining cost of revenue in Q1 2024 was $23,034 per Bitcoin, with power costs accounting for 73% of the total [52] Market Data and Key Metrics - The company ended Q1 2024 with 8,490 Bitcoin, up significantly from 7,094 Bitcoin at the end of Q1 2023 [41] - The company anticipates achieving a total self-mining hashrate capacity of 31 exahash by the end of 2024 [65] - The Corsicana facility, once fully developed, will have a total capacity of 1 gigawatt, making it the largest dedicated Bitcoin mining facility in North America [59] Company Strategy and Industry Competition - The company's strategy focuses on being a vertically integrated Bitcoin mining company, with key pillars including significant scale, low-cost production, and a strong balance sheet [8] - The company has developed a fully funded growth plan, with the Corsicana facility expected to increase self-mining hashrate to 31 exahash by the end of 2024 [10] - The company is leveraging its power strategy to drive down costs and maintain a low cost of production, positioning it well for trough periods in Bitcoin mining economics [21] Management Commentary on Operating Environment and Future Outlook - Management highlighted the challenges posed by the Bitcoin halving event but noted that the company is well-positioned to navigate these challenges due to its low-cost production strategy [15] - The company expects to resolve supply chain issues impacting its engineering business by the end of Q3 2024, which will allow it to recognize revenue from delayed projects [56] - Management remains confident in achieving the 31 exahash target by the end of 2024, despite potential challenges in development and deployment [104] Other Important Information - The company has terminated its data center hosting business and consolidated results into the Bitcoin mining segment, focusing on maximizing Bitcoin mining results [14] - The company has adjusted its depreciation schedule for mining hardware from two years to three years, based on market practice and operational history [47] - The company has a long-term agreement with MicroBT for the purchase of next-generation miners, with options for an additional 75 exahash of miners [60] Q&A Session Summary Question: How is the company managing Bitcoin inventory post-halving? - The company is focused on maintaining a strong balance sheet and holding as much Bitcoin as possible, while monitoring financing options and cost of capital [76][77] Question: What is the outlook for the engineering business? - The engineering business is expected to see improved performance in the second half of 2024 as supply chain issues are resolved and manufacturing capacity is expanded [82] Question: What are the challenges in reaching the 31 exahash target? - The company is confident in achieving the target, with challenges being minor operational issues that are expected in large-scale development projects [104][110] Question: Will the company consider M&A opportunities with hosting agreements? - The company is open to M&A opportunities that align with its strategic goals, even if they include hosting agreements, but prefers to focus on organic growth [108][112] Question: What is the company's strategy for future growth beyond Corsicana? - The company is open to smaller-scale opportunities and is exploring new sites both within and outside of Texas, with a focus on low-cost power [90][92]

Financial Performance - Riot Platforms reported a net income of $211777 thousand for the three months ended March 31, 2024, compared to a net income of $18513 thousand for the same period in 2023[2] - Adjusted EBITDA for Q1 2024 was $245729 thousand, a significant increase from $81698 thousand in Q1 2023[2] - Revenue increased by 65% year-over-year, reaching $793 million in Q1 2024[41] - Bitcoin Mining revenue was $74597 thousand in Q1 2024, compared to $48023 thousand in Q1 2023[110] Bitcoin Production and Holdings - Bitcoin production decreased by 35% year-over-year to 1364 BTC in Q1 2024, due to an 89% increase in the average global network hash rate[23, 17] - The company held 8490 BTC as of March 31, 2024, with an estimated fair value of approximately $6056 million[8, 18] - The cost to mine 1 BTC was $23034 in Q1 2024[8] Hash Rate and Infrastructure - Ending hash rate deployed increased by 18% year-over-year to 124 EH/s in Q1 2024[39, 48] - The company is expanding its infrastructure with the Corsicana Facility, aiming for a hash rate of 315 EH/s by the end of 2024 and a long-term goal of 100 EH/s[35, 68] Operational Efficiency - Cost of power decreased by 10% to 38 c/kWh in Q1 2024, compared to 42 c/kWh in Q1 2023[8, 42] - Power curtailment credits increased by 67% year-over-year to $51 million in Q1 2024[20]

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) Riot Platforms reported record Q1 2024 financial results, with significant net income and Adjusted EBITDA, supported by a strong balance sheet Q1 2024 Key Financial Metrics vs. Q1 2023 | Financial Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $79.3 million | $73.2 million | +8.3% | | Net Income | $211.8 million | $18.5 million | +1044% | | Earnings Per Share (EPS) | $0.82 | $0.11 | +645% | | Adjusted EBITDA | $245.7 million | $81.7 million | +200.7% | - The significant increase in net income for the quarter was largely due to a **$234.1 million** gain from the change in the fair value of Bitcoin[13](index=13&type=chunk) Balance Sheet Position as of March 31, 2024 | Item | Value | | :--- | :--- | | Working Capital | $692.5 million | | Cash on Hand | $688.5 million | | Unencumbered Bitcoin | 8,490 BTC | | Value of Bitcoin Holdings | ~$605.6 million | [Operational Highlights](index=1&type=section&id=Operational%20Highlights) Riot's Q1 2024 Bitcoin production decreased with higher mining costs, offset by the energization of the Corsicana Facility and power curtailment credits Q1 2024 Bitcoin Mining Operations vs. Q1 2023 | Operational Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Bitcoin Produced | 1,364 | 2,115 | -36% | | Average Cost to Mine | $23,034 | $9,438 | +144% | | Power Curtailment Credits | $5.1 million | $3.1 million | +64.5% | - The decrease in Bitcoin production and increase in mining cost were primarily driven by the global network hash rate more than doubling since January 2023[4](index=4&type=chunk)[5](index=5&type=chunk) - The company successfully energized its Corsicana Facility, which is expected to be the largest Bitcoin mining facility in the world once fully developed[3](index=3&type=chunk) [Business Segment Performance](index=2&type=section&id=Business%20Segment%20Performance) Riot's Bitcoin Mining segment revenue increased due to higher Bitcoin prices, while the Engineering segment saw a revenue decrease from supply chain constraints Q1 2024 Segment Revenue vs. Q1 2023 | Segment | Q1 2024 Revenue | Q1 2023 Revenue | | :--- | :--- | :--- | | Bitcoin Mining | $74.6 million | $48.0 million | | Engineering | $4.7 million | $16.1 million | - Bitcoin Mining revenue in excess of cost was **$33.5 million** (**45% margin**), an increase from **$26.1 million** (**54% margin**) in Q1 2023, driven by higher Bitcoin prices[7](index=7&type=chunk) - The Engineering segment experienced a net loss of **$1.3 million**, a reversal from a **$0.5 million** profit in the prior-year period, primarily due to decreased material receipts from supply chain issues[8](index=8&type=chunk) [Hash Rate Growth and Future Outlook](index=3&type=section&id=Hash%20Rate%20Growth%20and%20Future%20Outlook) Riot plans significant hash rate expansion to 31 EH/s by end of 2024 and 41 EH/s by 2025, driven by Corsicana Facility development and miner purchases Hash Rate Capacity Growth Targets | Target Date | Self-Mining Hash Rate Capacity | | :--- | :--- | | End of 2024 | 31 EH/s | | Full Deployment (2025) | 41 EH/s | - The Corsicana Facility, with a total planned capacity of **1 GW**, has been energized and miners are already being deployed. The initial **400 MW** phase is expected to add **16 EH/s** of capacity by the end of 2024[15](index=15&type=chunk) - Riot has placed three large purchase orders with MicroBT for new immersion and air-cooled miners, which will collectively add an anticipated **28 EH/s** to its self-mining capacity. Deployment is expected to be completed by the second half of 2025[16](index=16&type=chunk)[17](index=17&type=chunk) [Financing Activities](index=5&type=section&id=Financing%20Activities) Riot utilized its at-the-market equity program to raise significant net proceeds in Q1 2024 and post-quarter for growth funding - In February 2024, the company registered an ATM equity program to offer and sell up to **$750.0 million** in common stock[19](index=19&type=chunk) ATM Equity Offering Proceeds | Period | Net Proceeds | Shares Sold | Average Price | | :--- | :--- | :--- | :--- | | Q1 2024 | $345.7 million | 26,169,300 | $13.50 | | April 1-30, 2024 | $154.1 million | 14,789,000 | $10.63 | [Non-GAAP Financial Measures](index=7&type=section&id=Non-GAAP%20Financial%20Measures) Riot utilizes Adjusted EBITDA, a non-GAAP measure, to provide a clearer view of its core operational performance by excluding non-cash items - Adjusted EBITDA is defined as EBITDA adjusted for non-cash and/or non-recurring items, such as fair value changes in derivative assets, stock-based compensation, and casualty-related charges, to better reflect core business operations[27](index=27&type=chunk)[28](index=28&type=chunk) Reconciliation of Net Income to Adjusted EBITDA (in thousands) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Net income (loss)** | **$211,814** | **$18,513** | | Depreciation and amortization | $32,343 | $59,340 | | Stock-based compensation expense | $32,000 | $(2,296) | | Change in fair value of derivative asset | $(20,232) | $5,778 | | Other adjustments | $(10,139) | $36 | | **Adjusted EBITDA** | **$245,686** | **$81,698** |

Riot Platforms (RIOT) will report its first-quarter 2024 results on May 1, before market open.Let’s check out how RIOT is currently doing.Stock Performance & ValuationThe stock gained 13.4% over the past year. Despite an impressive gain, RIOT underperformed the 55% growth of the industry it belongs to and the Zacks S&P 500 composite’s 23.5% increase.Based on EV-to-EBITDA, RIOT is currently trading at 9.54 compared with the industry’s 60.02. If we look at the Price/Earnings ratio, PSN shares are currently tr ...

The latest trading session saw Riot Platforms, Inc. (RIOT) ending at $11.88, denoting a +0.25% adjustment from its last day's close. The stock outpaced the S&P 500's daily gain of 0.02%. Meanwhile, the Dow lost 0.11%, and the Nasdaq, a tech-heavy index, added 0.1%.Heading into today, shares of the company had lost 1.66% over the past month, outpacing the Business Services sector's loss of 5.08% and the S&P 500's loss of 3.01% in that time.Investors will be eagerly watching for the performance of Riot Platfo ...

Castle Rock, CO, April 24, 2024 (GLOBE NEWSWIRE) -- Riot Platforms, Inc. (NASDAQ: RIOT) (“Riot” or “the Company”), an industry leader in vertically integrated Bitcoin (“BTC”) mining, announced today that it has scheduled its first quarter 2024 earnings conference call for Wednesday, May 1, 2024, at 8:30 A.M. EST. During the call, Riot will discuss the results for the quarter ended March 31, 2024.   This conference call will be available through the audio webcast, please use this link here to register. Addit ...

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?Let's take a look at what these Wall Street heavyweights have to say about Riot Platforms, Inc. (RIOT) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.Riot Platforms, Inc. currently ...