Riot Platforms(US:RIOT)2025-10-30 21:01Financial Performance - Total revenue for the three months ended September 30, 2025, was $180.2 million, compared to $84.8 million for the same period in 2024, indicating a significant increase [285]. - Total revenue for the nine months ended September 30, 2025, was $494.6 million, compared to $234.1 million for the same period in 2024, representing an increase of approximately 111.8% [300]. - Bitcoin Mining revenue for the three months ended September 30, 2025, reached $160.8 million, a rise of $93.3 million from $67.5 million in 2024, primarily due to higher bitcoin prices averaging $114,361 per bitcoin [286]. - Bitcoin Mining revenue increased to $444.5 million for the nine months ended September 30, 2025, from $194.7 million in 2024, driven by higher bitcoin prices averaging $101,912 per bitcoin compared to $58,771 in 2024 [301]. - Engineering revenue for the three months ended September 30, 2025, was approximately $19.1 million, up from $12.6 million in the same period of 2024, reflecting a growth driven by the E4A Solutions Acquisition and accelerated project completions [260][287]. - The company generated net income of $27.6 million for the nine months ended September 30, 2025, which included $498.4 million in non-cash net gains from bitcoin mining [324]. Bitcoin Mining Operations - Bitcoin Mining revenue for the three months ended September 30, 2025, was approximately $160.8 million, and for the nine months ended September 30, 2025, it was approximately $444.5 million [256]. - During the nine months ended September 30, 2025, the company mined 4,362 bitcoin, an increase of 1,050 bitcoin compared to 3,312 bitcoin mined in the same period of 2024 [248]. - The cost to mine one bitcoin, including bitcoin miner depreciation, was $89,074 for the three months ended September 30, 2025, representing 77.9% of the production value of one bitcoin mined [252]. - The cost of revenue for Bitcoin Mining for the three months ended September 30, 2025, was $95.8 million, up from $51.5 million in 2024, largely due to increased capacity at the Corsicana Facility [288][289]. - The cost of revenue for Bitcoin Mining rose to $248.8 million for the nine months ended September 30, 2025, from $123.3 million in 2024, an increase of approximately 101.8% [303]. - The change in fair value of bitcoin for the three months ended September 30, 2025, resulted in a gain of $133.1 million, compared to $8.6 million in 2024, reflecting the adjustment of bitcoin held at the end of each period [293]. - The change in fair value of bitcoin for the nine months ended September 30, 2025, resulted in a gain of $395.9 million, compared to a gain of $166.2 million in 2024 [309]. Capacity and Infrastructure - The total deployed hash rate capacity increased to 36.5 EH/s as of September 30, 2025, up 15.9% from 31.5 EH/s as of December 31, 2024 [247]. - The Rockdale Facility has a developed capacity of 700 MW, while the Corsicana Facility has 400 MW, contributing to a total power capacity of 1,195 MW [251]. - The company completed the acquisition of Block Mining, adding 60 MW of developed capacity, which has been expanded to approximately 95 MW, with a target of reaching 160 MW [242]. - The Corsicana Facility is expected to have approximately 1 GW of developed capacity available for data center workloads upon completion [241]. - The company is developing a scalable data center platform to support non-mining operations, including applications in AI and HPC, to maximize the value of its energy portfolio [239]. Costs and Expenses - Selling, general and administrative expenses for the three months ended September 30, 2025, were $69.8 million, an increase of approximately $2.9 million from $66.9 million in 2024, driven by higher stock-based compensation and operational costs [291]. - Selling, general and administrative expenses increased to $217.2 million for the nine months ended September 30, 2025, from $185.8 million in 2024, an increase of approximately 16.9% [307]. - The company incurred increased power costs of $110.0 million and a $32.9 million increase in selling, general, and administrative costs during the nine months ended September 30, 2025 [336]. - The impairment of property and equipment was $15.3 million in 2025, related to long-lead items for the Corsicana Facility expansion [314]. Cash Flow and Financing - For the nine months ended September 30, 2025, net cash provided by operating activities was $(467.4) million, while net cash provided by investing activities was $78.6 million [335]. - The company issued approximately 16.1 million shares under its ATM offering program for net proceeds of $195.2 million during the nine months ended September 30, 2025 [323]. - The company raised approximately $199.6 million through its ATM Program offerings during the nine months ended September 30, 2025 [340]. - The company has approximately $854.0 million in total principal on its outstanding debt, including $594.4 million from its 2030 Notes [340]. - Interest income decreased to $10.7 million for the nine months ended September 30, 2025, from $22.2 million in 2024, primarily due to lower average cash balances [315]. Future Projections - The company anticipates that a 10% increase in the price of bitcoin could result in an increase in net income of $220.0 million for the nine months ended September 30, 2025 [356]. - The company expects to pay approximately $105.4 million to MicroBT for the purchase of miners through the second quarter of 2026 [326].