Riot Platforms(US:RIOT)2025-05-01 20:30Financial 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 [13] - Gross profit for Q1 2025 was $73.6 million, up from $55.7 million in the prior quarter, resulting in a gross margin increase from 39% to 46% [13] - 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 [14] - Non-GAAP adjusted EBITDA for Q1 2025 was negative $176.3 million, a significant decrease from positive $296.3 million in the previous quarter [13][14] 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% [11] - Bitcoin mining revenue totaled $142.9 million in Q1 2025, a 13% increase from $126.3 million in the prior quarter [14] - Engineering revenue increased by 20% to $13.9 million in Q1 2025, compared to $11.6 million in the previous quarter [16] 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 [12] - 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 [14] 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 [7][19] - The company is focusing on developing its AI HPC data center business, with significant progress in land acquisitions and infrastructure development [10][20] - Riot's strategy includes maintaining a strong balance sheet while exploring various financing options to fund growth [8][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a Bitcoin yield of 7% year-to-date and emphasized the importance of operational efficiency [12][30] - The company is optimistic about the demand for data center capacity, particularly in the AI sector, and is actively engaging with potential tenants [42][43] - Management highlighted the importance of securing financing partners to support the development of the AI HPC data center [46][91] Other Important Information - Riot's capital expenditures in Q1 2025 totaled $48.9 million, primarily for the expansion of its Corsicana facility [20] - The company is actively pursuing additional land acquisitions to enhance its data center development capabilities [26][70] 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 to support regulatory success [33][34] 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 regarding power delivery [42][43] Question: Financing options for AI HPC projects - Management stated they are exploring various financing structures to maximize value and are well-positioned with potential financing partners [46][91] Question: Impact of tariffs on power infrastructure - Management acknowledged that tariffs could impact costs for certain components but emphasized domestic production for critical switchgear [78] Question: Milestones for AI HPC development - Management highlighted the importance of building internal expertise and completing a basis of design for potential data centers as key milestones [81][82]