Riot Platforms(RIOT) - 2024 Q4 - Annual Results

Production and Mining Performance - Riot Platforms produced 4,828 BTC in FY 2024, representing a 27% decrease from the previous year, while Bitcoin held increased by 141% to 17,722 BTC[12][14]. - The quantity of Bitcoin mined in 2024 was 4,828, a decrease from 6,626 in 2023, reflecting a 27% decline[76]. - Cost to mine one Bitcoin, excluding Bitcoin miner depreciation, was $32,216 in 2024, which is 48.5% of the production value of one Bitcoin mined[76]. - Riot paused the sale of Bitcoin earned from self-mining operations starting January 2024, leading to a 39% BTC yield for FY 2024[9][12]. Financial Performance - The company achieved a revenue of $376.7 million in FY 2024, a 34% increase compared to FY 2023, with an adjusted EBITDA of $463.2 million[12][15]. - Total revenue for 2024 reached $376.658 million, a 34.1% increase from $280.678 million in 2023[86]. - Bitcoin mining revenue significantly increased to $321.002 million, up 69.8% from $188.996 million in 2023[86]. - Operating income for 2024 was $153.590 million, compared to an operating loss of $63.047 million in 2023[86]. - Net income for 2024 was $109.401 million, a substantial recovery from a net loss of $49.472 million in 2023[86]. - Adjusted EBITDA for 2024 was $463.189 million, a significant increase from $214.021 million in 2023[88]. - Fully Costed Gross Profit for 2024 was $(98,150,000), an improvement from $(226,009,000) in 2023[78]. - Gross Margin for 2024 improved to 39%, compared to 26% in 2023[82]. - Basic net income per share improved to $0.40 in 2024, compared to a loss of $0.28 in 2023[86]. Operational Efficiency - Riot's deployed hash rate reached 31.5 EH/s by December 2024, marking a 154% increase year-over-year[12][13]. - Riot's fleet efficiency improved by 21% year-over-year, achieving 21.9 J/TH[12][15]. - The average hash cost was approximately $28 per PH/s per day, compared to an average hash price of $6,977 per BTC in FY 2024[12][20]. - Cash SG&A expenses for 2024 were $141,711,000, up from $68,176,000 in 2023, indicating a 108% increase[80]. - Hash Cost for 2024 was $28.3 per PH/s/day, compared to $10.2 per PH/s/day in 2023, reflecting a 178% increase[85]. Capital Expenditures and Investments - The company completed the acquisition of E4A Solutions for $52 million, enhancing its engineering capabilities and operational synergies[25]. - The company acquired Block Mining for $92.5 million, adding 60 MW of operational capacity and a pipeline to build to a total of 305 MW[9][12]. - Riot's capital expenditures for 2025 are estimated at $198 million, including $110 million for miner purchases, which will increase the total deployed hash rate to 6.5 EH/s by the end of 2025[43]. - The company has secured $594.4 million through the issuance of convertible senior notes due 2030, with net proceeds used to acquire Bitcoin[41]. Power Costs and Strategy - The cost of power remained competitive at 3.4 cents per kWh, contributing to a power curtailment credit of $33.7 million[12][15]. - Total Cost of Power for 2024 was $186,154,000, up from $135,513,000 in 2023, representing a 37% increase[76]. - Net Cost of Power for 2024 was $152,469,000, significantly higher than $64,298,000 in 2023, indicating a 137% increase[76]. - Riot's strategic focus includes optimizing power costs through management strategies at its Rockdale and Corsicana assets[67]. Future Outlook and Strategic Initiatives - The company aims to achieve an average operational uptime of 87% in December 2024, reflecting improvements in operational efficiency[67]. - Riot's BTC treasury strategy has shown a potential delta in value of $149.2 million at a BTC price of $100,000[38]. - The company is aggressively pursuing opportunities in AI and HPC, with a feasibility study expected to be completed by mid-March 2025[67]. - Riot's Corsicana facility has a developed capacity of 400 MW and potential capacity of 1,000 MW, positioning it well for future growth[48]. - The company is targeting an accretive BTC yield in 2025 through prudent capital strategy and operational improvements[67]. Unrealized Losses - The company reported a significant unrealized loss on equity method investments of $69.489 million in 2024[88].