Riot Platforms, Inc. (RIOT) came out with quarterly earnings of $0.57 per share, beating the Zacks Consensus Estimate of a loss of $0.19 per share. This compares to a loss of $0.32 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +400.00%. A quarter ago, it was expected that this company would post a loss of $0.25 per share when it actually produced a loss of $0.9, delivering a surprise of -260%. Over the last four quarters, t ...

Financial Performance - Riot Platforms reports net profit in Q2 [1] Operational Metrics - Cost to mine bitcoin doubles year-over-year [1]

Financial Data and Key Metrics Changes - Riot reported total revenue of $153 million for the second quarter, a 5% decrease from $161.4 million in the previous quarter, primarily due to lower Bitcoin production [19] - Gross profit for the second quarter was $70.3 million, compared to $73.6 million in the prior quarter, with a gross margin of 46%, unchanged from the previous quarter [19] - Net income for the second quarter was $219.5 million, or $0.65 per share, compared to a net loss of $296.4 million, or $0.90 per share, in the prior quarter [19][20] - Non-GAAP adjusted EBITDA for the second quarter was $495.3 million, compared to a loss of $176.3 million in the prior quarter [20] Business Line Data and Key Metrics Changes - Riot increased its self-mining hash rate from 33.7 to 35.4, representing a 5% increase, while the global hash rate rose by 9% during the same period [18] - Bitcoin mining revenue totaled $140.9 million, consistent with the prior quarter's revenue of $142.9 million, with a gross margin of 50%, up from 48% in the previous quarter [21] - Direct cost to mine, excluding depreciation, totaled $48,992 per Bitcoin, with power costs accounting for 77% of total direct costs [21][22] Market Data and Key Metrics Changes - The market for data center talent is highly competitive, with significant demand for power and infrastructure that is not currently being met [49] - The demand for compute capacity is expected to continue growing, driven by the AI arms race and increasing CapEx budgets from hyperscalers [49] Company Strategy and Development Direction - Riot's strategy focuses on maximizing the value of its power portfolio and transitioning power capacity towards data centers while utilizing Bitcoin mining where advantageous [13][41] - The company aims to build a robust and scalable data center segment, leveraging its existing power assets and Bitcoin mining capabilities [7][10] - Riot has hired Jonathan Gibbs as Chief Data Center Officer to lead the development of its data center business [14][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capitalize on market dynamics, emphasizing the importance of having readily available power in high-demand jurisdictions [41] - The company is strategically positioned to benefit from the growing gap between power demand and supply, particularly in key markets like Dallas and Austin [40] - Management highlighted the importance of a disciplined approach to capital allocation and the potential for shareholder value creation through strategic growth initiatives [12][41] Other Important Information - Riot ended the second quarter with over 19,000 Bitcoin and $330 million in cash, representing $2.4 billion in liquidity [15] - The company is actively engaged in discussions with potential data center tenants and has made significant progress in its Bitcoin mining operations [15][29] Q&A Session Summary Question: Discussion on Bitcoin generation and huddle strategy - Management explained that selling Bitcoin production allows the company to cover operating costs and focus on growth opportunities, with plans to adjust strategies based on Bitcoin price fluctuations [44][46] Question: Market dynamics regarding power transactions - Management noted robust demand in the data center market, with a significant gap between power availability and forecasted demand, emphasizing the importance of large-scale power capacity [49][50] Question: Basis of design for data centers - Management confirmed that significant progress has been made on the basis of design, which is crucial for engaging potential tenants and advancing negotiations [55][57] Question: Long lead times and infrastructure development - Management stated that critical infrastructure has already been secured, and they are confident in their ability to meet timelines for equipment procurement [59][60] Question: Potential tenants and negotiations - Management indicated that the basis of design will enhance negotiations with potential tenants, allowing for flexibility in serving various customer types [66][68] Question: Bitcoin mining outlook and network hash rate - Management projected a year-over-year growth of approximately 26% from 2024 to 2025, with a focus on maximizing the value of their power portfolio [74]

PART I - FINANCIAL INFORMATION [Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents Riot Platforms' unaudited condensed consolidated financial statements for Q2 and H1 2025, including balance sheets, operations, and cash flows [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$4.29 billion** by June 30, 2025, driven by Bitcoin holdings and new debt facilities Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $516,103 | $599,476 | | **Bitcoin** | $1,711,908 | $1,654,468 | | **Total Assets** | **$4,285,401** | **$3,935,307** | | **Total Current Liabilities** | $374,907 | $160,385 | | **Total Liabilities** | **$989,485** | **$791,622** | | **Total Stockholders' Equity** | **$3,295,916** | **$3,143,685** | - Key changes from Dec 31, 2024 include a decrease in cash and cash equivalents from **$277.9 million** to **$255.4 million**, and an increase in total debt (current and long-term) from **$584.6 million** to **$838.4 million**[13](index=13&type=chunk) [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2025 saw **$219.5 million** net income due to Bitcoin fair value gains, while H1 2025 recorded a net loss Q2 2025 vs Q2 2024 Performance (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Total Revenue** | $152,988 | $70,018 | | Bitcoin Mining Revenue | $140,889 | $55,764 | | Change in fair value of bitcoin | $470,812 | $(76,403) | | Loss on contract settlement | $(158,137) | $0 | | **Operating Income (Loss)** | $216,146 | $(117,041) | | **Net Income (Loss)** | **$219,454** | **$(84,449)** | | **Diluted EPS** | **$0.58** | **$(0.32)** | H1 2025 vs H1 2024 Performance (in thousands, except per share data) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | **Total Revenue** | $314,375 | $149,314 | | Bitcoin Mining Revenue | $283,748 | $127,160 | | **Operating Income (Loss)** | $(17,728) | $86,901 | | **Net Income (Loss)** | **$(76,913)** | **$127,328** | | **Diluted EPS** | **$(0.23)** | **$0.51** | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) H1 2025 cash used in operations increased to **$353.4 million**, with financing activities providing **$372.4 million** Six Months Ended June 30, Cash Flow Summary (in thousands) | Cash Flow Category | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $(353,385) | $(100,365) | | Net cash provided by (used in) investing activities | $(40,019) | $(520,689) | | Net cash provided by (used in) financing activities | $372,351 | $505,053 | | **Net (decrease) in cash** | **$(21,053)** | **$(116,001)** | - Investing activities in H1 2025 included **$93.2 million** for property and equipment and **$86.4 million** in deposits, offset by **$131.8 million** in proceeds from bitcoin sales, a significant reduction from H1 2024's **$520.7 million** use of cash[24](index=24&type=chunk) - Financing activities in H1 2025 were driven by **$123.9 million** from ATM offerings and **$261 million** in net proceeds from new debt facilities[24](index=24&type=chunk) [Note 3. Acquisitions](index=15&type=section&id=Note%203.%20Acquisitions) The company completed key acquisitions, including Rhodium assets for **$185.0 million** and Block Mining for **$113.6 million** - Settled all litigation with Rhodium, acquired its assets at the Rockdale Facility, and terminated legacy hosting agreements for **$185.0 million**, resulting in a recognized loss on contract settlement of **$158.1 million**[47](index=47&type=chunk)[50](index=50&type=chunk) - Acquired E4A Solutions, an electrical engineering company, for approximately **$54.4 million** to support its vertically integrated strategy[51](index=51&type=chunk)[52](index=52&type=chunk) - Acquired Block Mining, a Kentucky-based bitcoin miner, for approximately **$113.6 million**, adding **60 MW** of operational capacity and access to the MISO electrical grid[60](index=60&type=chunk)[63](index=63&type=chunk) [Note 5. Bitcoin](index=21&type=section&id=Note%205.%20Bitcoin) As of June 30, 2025, the company held **19,273 bitcoin** with a fair value of **$2.07 billion** Bitcoin Holdings as of June 30, 2025 | Category | Quantity | Fair Value (in thousands) | | :--- | :--- | :--- | | Bitcoin | 15,973 | $1,711,908 | | Restricted bitcoin | 3,300 | $353,672 | | **Total** | **19,273** | **$2,065,580** | - For the six months ended June 30, 2025, the company recognized **$283.7 million** in revenue from mining **2,956 bitcoin**[82](index=82&type=chunk) [Note 12. Debt](index=33&type=section&id=Note%2012.%20Debt) Total outstanding debt reached approximately **$840 million** by June 30, 2025, including **$594.4 million** in convertible notes - Outstanding **0.75% Convertible Senior Notes** due 2030 have a principal amount of **$594.4 million**[132](index=132&type=chunk) - Entered into and fully drew down a **$200 million** credit facility with Coinbase, secured by **3,300** of the company's bitcoin[145](index=145&type=chunk)[147](index=147&type=chunk) - As of June 30, 2025, borrowings outstanding under the **$50 million** and **$20 million** revolving credit facilities were **$34.3 million** and **$20.0 million**, respectively[139](index=139&type=chunk)[143](index=143&type=chunk) [Note 17. Commitments and Contingencies](index=44&type=section&id=Note%2017.%20Commitments%20and%20Contingencies) The company faces **$83.5 million** in miner commitments and significant legal claims exceeding **$1 billion** from former customers - Remaining commitment of **$83.5 million** for the purchase of miners from MicroBT, expected to be paid during the remainder of 2025[186](index=186&type=chunk) - Legacy hosting customer SBI Crypto is claiming over **$350 million** in lost profits and **$50 million** in equipment replacement costs[201](index=201&type=chunk) - Legacy hosting customer GMO is seeking damages in excess of **$150 million** plus an additional **$496 million** for alleged wrongful termination of their agreement[202](index=202&type=chunk)[204](index=204&type=chunk) [Note 19. Segment Information](index=51&type=section&id=Note%2019.%20Segment%20Information) Riot operates in Bitcoin Mining and Engineering segments, with Q2 2025 Bitcoin Mining revenue at **$140.9 million** Segment Performance for Three Months Ended June 30, 2025 (in thousands) | Segment | Revenue from External Customers | Segment Gross Profit (Loss) | | :--- | :--- | :--- | | **Bitcoin Mining** | $140,889 | $62,714 | | **Engineering** | $10,576 | $5,728 | Segment Performance for Six Months Ended June 30, 2025 (in thousands) | Segment | Revenue from External Customers | Segment Gross Profit (Loss) | | :--- | :--- | :--- | | **Bitcoin Mining** | $283,748 | $130,755 | | **Engineering** | $24,496 | $14,166 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=55&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Riot's vertically integrated strategy, Bitcoin mining, AI/HPC expansion, and financial performance [Business Overview and Trends](index=55&type=section&id=Business%20Overview%20and%20Trends) Riot's deployed hash rate reached **35.4 EH/s** by June 30, 2025, with a dual strategy in Bitcoin mining and AI/HPC - The company is pursuing a dual-pronged strategy focusing on Bitcoin mining and developing a scalable data center platform for AI/HPC workloads[226](index=226&type=chunk) Key Bitcoin Mining Metrics | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Combined Deployed Hash Rate (EH/s)** | 35.4 | 31.5 | | **Total Developed Power Capacity (MW)** | 1,165 | 900 | - Cost to mine one bitcoin for Q2 2025 was **$48,992** excluding depreciation, and **$91,244** including depreciation[239](index=239&type=chunk) - The power strategy, including manual curtailment and demand response programs, generated **$8.3 million** in power credits in Q2 2025[253](index=253&type=chunk) [Results of Operations](index=68&type=section&id=Results%20of%20Operations) Q2 2025 revenue increased **118%** to **$153.0 million** due to higher Bitcoin prices and production, leading to net income - Q2 2025 Bitcoin Mining revenue increased by **$85.1 million** YoY, due to higher average bitcoin prices (**$98,800** vs **$66,004**) and a **68.9%** increase in bitcoin production[271](index=271&type=chunk) - Q2 2025 costs increased significantly, with Bitcoin Mining cost of revenue up **$42.9 million**, SG&A up **$14.7 million**, and Depreciation & Amortization up **$45.9 million** YoY[274](index=274&type=chunk)[276](index=276&type=chunk)[277](index=277&type=chunk) Adjusted EBITDA Reconciliation (in thousands) | Period | Net Income (Loss) | Adjusted EBITDA | | :--- | :--- | :--- | | **Q2 2025** | $219,454 | $495,268 | | **Q2 2024** | $(84,449) | $(75,207) | | **H1 2025** | $(76,913) | $318,931 | | **H1 2024** | $127,328 | $170,522 | [Liquidity and Capital Resources](index=75&type=section&id=Liquidity%20and%20Capital%20Resources) Riot had **$141.2 million** in net working capital as of June 30, 2025, funding operations via debt and equity offerings - As of June 30, 2025, the company had net working capital of **$141.2 million**, with cash and cash equivalents of **$255.4 million**[308](index=308&type=chunk) - In H1 2025, the company raised **$121.1 million** in net proceeds from its ATM equity program by selling **10.8 million** shares[307](index=307&type=chunk)[317](index=317&type=chunk) - Financing activities in H1 2025 provided **$372.4 million**, primarily from ATM proceeds and **$254.3 million** in net proceeds from new debt arrangements[323](index=323&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=81&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Primary market risks are Bitcoin price and power costs, with a 10% Bitcoin change impacting H1 2025 net income by **$338.4 million** - The company's main market risk exposures are the volatile price of bitcoin and the price of power for its mining operations[338](index=338&type=chunk)[341](index=341&type=chunk) Market Risk Sensitivity Analysis for H1 2025 (in thousands) | Risk Factor | 10% Increase Impact on Net Income | 10% Decrease Impact on Net Income | | :--- | :--- | :--- | | **Price of Bitcoin** | $338,388 | $(338,388) | | **Future Power Prices** | $41,537 | $(41,537) | [Controls and Procedures](index=83&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls were effective as of June 30, 2025, with ongoing integration of acquired entities' internal controls - Management concluded that disclosure controls and procedures were effective at a reasonable assurance level as of June 30, 2025[343](index=343&type=chunk) - The company is integrating internal controls of Block Mining and E4A Solutions acquisitions, with full inclusion expected by year-end 2025[344](index=344&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=85&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in significant legal proceedings, including patent disputes and large breach of contract claims - This section incorporates by reference the disclosures in Note 17, which details ongoing litigation[345](index=345&type=chunk) [Risk Factors](index=85&type=section&id=Item%201A.%20Risk%20Factors) New risks relate to AI/HPC expansion, including execution challenges, third-party reliance, and resource diversion - New risks are identified related to the early-stage development of AI/HPC infrastructure, including potential for unforeseen challenges and budget overruns[347](index=347&type=chunk)[348](index=348&type=chunk) - The success of the AI/HPC initiative is dependent on attracting and retaining qualified third-party partners and customers[351](index=351&type=chunk) - Expansion into AI/HPC may divert capital, personnel, and power capacity from the core Bitcoin mining business, potentially diminishing its competitive position[352](index=352&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=87&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q2 2025, the company repurchased **9,134 shares** to satisfy tax obligations on employee restricted stock awards - In Q2 2025, employees surrendered **9,134 shares** to the company to cover tax obligations on vested restricted stock awards[353](index=353&type=chunk)[356](index=356&type=chunk) [Other Information](index=87&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, modified, or terminated Rule 10b5-1 trading plans during Q2 2025 - No directors or officers adopted or terminated a Rule 10b5-1 plan during the three months ended June 30, 2025[354](index=354&type=chunk) [Exhibits](index=88&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed, including key agreements and required officer certifications - Lists key agreements filed as exhibits, such as the Credit Agreement with Coinbase and the Purchase and Sale Agreement with Rhodium[357](index=357&type=chunk) - Includes required certifications from the CEO and CFO under Sarbanes-Oxley Sections 302 and 906[357](index=357&type=chunk)

Riot Reports $219.5 million in Net Income and $495.3 million in Adjusted EBITDA CASTLE ROCK, Colo., July 31, 2025 (GLOBE NEWSWIRE) -- Riot Platforms, Inc. (NASDAQ: RIOT) ("Riot" or "the Company"), a Bitcoin-driven industry leader in the development of large-scale data centers for high performance computing and bitcoin mining applications, reported financial results for the three-month period ended June 30, 2025. The accompanying presentation materials are available on Riot's website. "I am pleased to announ ...

Q2 2025 Key Accomplishments - Riot acquired an additional 238 acres at Corsicana, increasing the total acreage footprint to 858 acres[17] - Bitcoin Mining operations achieved a 50% gross margin[17] - The company's all-in power cost was $0.035 per kWh, and the hash cost was $25/PH/s/day[17] - Riot ended Q2 2025 with 19,273 BTC and $330 million in cash[18] - The company sold 1,371 BTC at an average price of $96,136 per BTC, generating proceeds of $132 million[18] Q2 2025 Financial Update - Riot produced 1,426 BTC in Q2 2025, averaging 15.7 BTC per day[22] - The company held 19,273 BTC valued at $2.1 billion, representing a $479 million increase[22] - Total revenue was $153 million, with $140.9 million from Bitcoin Mining, a 119% increase compared to Q1 2024[22] - Net income was $219.5 million, including a $470.8 million unrealized gain on bitcoin held[22] - Power curtailment credits amounted to $8.3 million[22]

Core Insights - Riot Platforms, Inc. reported a record net income of $219.5 million and adjusted EBITDA of $495.3 million for Q2 2025, driven by strong Bitcoin prices and operational efficiencies [2][5]. Financial Performance - Total revenue for Q2 2025 reached $153.0 million, a significant increase from $70.0 million in Q2 2024, primarily due to an $85.1 million rise in Bitcoin mining revenue [5]. - The company produced 1,426 bitcoins in Q2 2025, up from 844 bitcoins in the same period last year [5]. - The average cost to mine one bitcoin, excluding depreciation, was $48,992 in Q2 2025, compared to $25,329 in Q2 2024, influenced by the block subsidy halving and a 45% increase in the global network hash rate [5][17]. Operational Highlights - Bitcoin mining revenue for the quarter was $140.9 million, up from $55.8 million in Q2 2024, attributed to higher average Bitcoin prices and increased operational hash rate [5]. - Engineering revenue increased to $10.6 million from $9.6 million year-over-year, benefiting from $18.5 million in capital expenditure savings since the acquisition of ESS Metron in December 2021 [5][6]. Strategic Positioning - The company emphasizes its strong capabilities in power procurement, Bitcoin mining, and infrastructure engineering, positioning itself to maximize shareholder value [3]. - Riot's strategy focuses on optimizing its power portfolio and shifting capacity towards high-value data centers, supported by recent key hires [3]. Balance Sheet Strength - Riot maintained a robust financial position with $141.1 million in working capital, including $255.4 million in unrestricted cash and $62.5 million in marketable equity securities [10]. - The company held 19,273 bitcoins, valued at approximately $2.1 billion based on a market price of $107,174 per bitcoin as of June 30, 2025 [10].

Top 10 Public Companies by $BTC Holdings1. MicroStrategy - 607.7K2. MARA Holdings - 50K3. XXI - 37.2K4. Riot Platforms - 19.2K5. Trump Media & Technology - 18.4K6. Metaplanet - 16.3K7. Galaxy Digital Holdings - 12.8K8. CleanSpark - 12.6K9. Tesla - 11.5K10. Hut 8 Mining Corp - 10.2K ...

Core Insights - Riot Platforms, Inc. (RIOT) is set to report its second-quarter 2025 results on July 31, with a history of disappointing earnings surprises, having only surpassed estimates once in the last four quarters, resulting in an average negative surprise of 60.6% [1][4]. Group 1: Q2 Expectations - The Zacks Consensus Estimate for RIOT's revenues is $152.8 million, indicating over 100% year-over-year growth [2][9]. - The increase in Bitcoin prices by 17.8% over the past six months is expected to positively impact revenues, alongside contributions from the Corsicana Facility and E4A Solutions acquisition [2][9]. - The anticipated loss per share is 19 cents, a significant improvement from the 32 cents per share loss reported last year, attributed to enhanced efficiency from the acquisition of Rhodium mining operations [3][9]. Group 2: Earnings Prediction Model - The current model does not predict an earnings beat for RIOT, as it holds an Earnings ESP of +21.05% but a Zacks Rank of 4 (Sell), which diminishes the likelihood of a positive earnings surprise [4].

Core Viewpoint - The market anticipates Riot Platforms, Inc. (RIOT) to report a year-over-year increase in earnings and revenues for the quarter ended June 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - The consensus EPS estimate for Riot Platforms is $0.09 per share, reflecting a year-over-year increase of +128.1% [3]. - Expected revenues are $152.75 million, which is an increase of +118.2% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised up by 230.12% over the last 30 days, indicating a significant reassessment by analysts [4]. - The Most Accurate Estimate for Riot Platforms is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +240.91% [12]. Earnings Surprise Prediction - A positive Earnings ESP reading suggests a potential earnings beat, especially when combined with a strong Zacks Rank [10]. - However, Riot Platforms currently holds a Zacks Rank of 4, which complicates the prediction of an earnings beat despite the positive Earnings ESP [12]. Historical Performance - In the last reported quarter, Riot Platforms was expected to post a loss of $0.25 per share but instead reported a loss of -$0.90, resulting in a surprise of -260.00% [13]. - Over the past four quarters, the company has only beaten consensus EPS estimates once [14]. Industry Comparison - SoFi Technologies, Inc. (SOFI), another player in the financial services industry, is expected to report an EPS of $0.06 for the same quarter, indicating a year-over-year change of +500% [18]. - SoFi's expected revenues are $805.44 million, up 34.9% from the previous year, with an unchanged consensus EPS estimate over the last 30 days [19].