Riot Platforms(US:RIOT)2025-05-01 21:00PART I - FINANCIAL INFORMATION Financial Statements 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 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 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 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 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 applications293032 - 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 contracts3167 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, 2025100113118 - 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 2025170 Management's Discussion and Analysis of Financial Condition and Results of Operations 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 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 Kentucky220222 - 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 potential226227 - 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 2024228 Results of Operations 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 $52,343268 - 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 completions269 - 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 miners274 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 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 2024284 - As of March 31, 2025, the company had $310.3 million in net working capital, including $163.7 million in cash and cash equivalents285 - A significant contractual commitment is the remaining $54.0 million for the purchase of MicroBT miners, expected to be paid during 2025287 Quantitative and Qualitative Disclosures About Market Risk 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 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, 2025319 - 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 2025320 PART II - OTHER INFORMATION Legal Proceedings 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 customers322176 Risk Factors 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 components324325 Unregistered Sales of Equity Securities and Use of Proceeds 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 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 2025327 Exhibits 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 files330