Riot Platforms(RIOT) - 2024 Q1 - Quarterly Results

Financial Highlights 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] 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 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][5] - The company successfully energized its Corsicana Facility, which is expected to be the largest Bitcoin mining facility in the world once fully developed[3] Business Segment Performance 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] - 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] Hash Rate Growth and Future Outlook 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] - 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][17] Financing Activities 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] 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 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][28] 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 |