Financial Data and Key Metrics Changes - Riot reported total revenue of $161.4 million for Q1 2025, a 13% increase from $142.6 million in the previous quarter [14] - Gross profit for Q1 2025 was $73.6 million, up from $55.7 million in the prior quarter, resulting in a gross margin of 46%, compared to 39% previously [14] - Net loss for Q1 2025 was $296.4 million, or $0.90 per share, compared to a net income of $136.4 million, or $0.43 per share in the prior quarter [16] - Non-GAAP adjusted EBITDA for Q1 2025 was negative $176.3 million, compared to positive $296.3 million in the previous quarter [15] Business Line Data and Key Metrics Changes - Riot increased its self-mining hash rate from 31.5 exahash to 33.7 exahash, a 7% increase, while global hash rate rose by 10% [12] - Bitcoin mining revenue totaled $142.9 million in Q1 2025, a 13% increase from $126.3 million in the prior quarter [16] - Engineering revenue increased by 20% to $13.9 million in Q1 2025, compared to $11.6 million in the previous quarter [18] Market Data and Key Metrics Changes - Riot ended Q1 2025 holding 19,223 Bitcoin, an 8% increase from 17,722 Bitcoin at the end of 2024 [13] - The price of Bitcoin at the end of Q1 2025 was $82,534, down from $93,354 at the end of Q4 2024, leading to a mark-to-market adjustment of $271.2 million [16] Company Strategy and Development Direction - The acquisition of Rhodium's assets aims to enhance Riot's hashrate capacity and reduce operating losses and litigation costs [9][20] - The company is focusing on developing its AI HPC data center business, with significant progress made in land acquisitions and infrastructure development [11][24] - Riot's strategy includes maintaining a strong balance sheet while exploring various financing options to fund growth [10][61] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand for data center capacity, particularly for AI applications, with a projected need for 30 gigawatts by 2030 [42] - The company aims to maximize the value of its assets and is actively pursuing partnerships with hyperscalers [30][82] - Management highlighted the importance of prudent financial management and operational efficiency in navigating market challenges [10][30] Other Important Information - Riot's cash SG&A expenses for Q1 2025 were $41.9 million, including one-time litigation expenses [16] - The company is actively working on securing additional fiber capacity and water supply for its Corsicana facility [28] Q&A Session Summary Question: Insights on the large flexible load task force - Management clarified that Riot was not behind the inception of the task force but is involved in public policy efforts [33] Question: Economics of capital projects - Management indicated it is too early to determine specific capital expenditure targets but is focused on maximizing shareholder value [36] Question: Demand for AI HPC opportunities - Management noted robust demand for data center capacity and positive feedback from hyperscalers [42] Question: Financing options for projects - Management stated they are exploring various financing options to maximize capital efficiency [61] Question: Backup generation and power infrastructure - Management emphasized the importance of backup generation and their engineering division's expertise in this area [50] Question: Cash OpEx trends post-Rhodium settlement - Management confirmed guidance for cash SG&A remains at $30 to $33 million per quarter, excluding one-time expenses [87] Question: Milestones for HPC development - Management highlighted the importance of building internal expertise and securing leases as key milestones [81]