Riot Platforms(US:RIOT)2025-10-30 21:30Financial Data and Key Metrics Changes - Riot reported total revenue of $180.2 million for Q3 2025, an 18% increase from $153 million in the previous quarter [24] - Net income for Q3 was $104.5 million, or $0.26 per fully diluted share, compared to $219.5 million, or $0.58 per fully diluted share in the prior quarter [24] - Non-GAAP adjusted EBITDA for Q3 was $197.2 million, down from $495.3 million in the previous quarter [24] - Bitcoin production slightly declined to 1,406 Bitcoin from 1,426 Bitcoin in the prior quarter, attributed to an 8% increase in the global hash rate [24][25] - Riot ended Q3 holding 19,287 Bitcoin, valued at approximately $2.2 billion [25] Business Line Data and Key Metrics Changes - Bitcoin mining revenue for Q3 was $160.8 million, with a total direct cost per Bitcoin of $46,324, resulting in a gross profit of $95.7 million, or a 59% gross profit margin [26] - The company generated $31 million in power credits, lowering the net cost of power to $0.32 per kilowatt-hour [25] Market Data and Key Metrics Changes - Approximately 1.7 gigawatts of Riot's total capacity is located in the Dallas and Austin regions, which are highly attractive data center markets [22] - Riot's power portfolio totals more than 1.8 gigawatts, fully approved and available today, positioning it as one of the largest in North America [21] Company Strategy and Development Direction - Riot is transforming into a significant data center developer and operator, with a focus on maximizing the value of its power portfolio by transitioning megawatts towards data center development [20][35] - The company is initiating the core and shell development of two buildings at the Corsicana Data Center campus, representing 112 megawatts of critical IT capacity [4][17] - The overall development plan includes nearly 2 gigawatts of secured utility-load power, with a focus on high-quality tenants to ensure strong foundations for the data center business [6][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for data center capacity, driven by the growing needs of hyperscalers and enterprise customers [4][37] - The company is focused on building a strong foundation for its data center business, emphasizing the importance of delivery timelines and minimizing risks for potential tenants [38][46] - Management highlighted the strategic advantage of having a strong balance sheet, significant cash reserves, and a large Bitcoin holding to support ongoing transformations [34] Other Important Information - Riot has made substantial progress in its design program, completing a standardized data center basis of design that meets tier-three resiliency and efficiency expectations [11] - The company has acquired 67 acres of land adjacent to its Corsicana site for $40 million, enhancing its development capabilities [15][16] Q&A Session Summary Question: Update on discussions with potential tenants for the first builds - Management is encouraged by the current market position and the growing demand for power among hyperscalers and enterprise customers, indicating a strong interest in the Corsicana site [36][40] Question: Additional power procurement opportunities - Management remains active in exploring opportunities to expand the power portfolio, but the focus is primarily on maximizing the current development potential [41][42] Question: Impact of core and shell construction on negotiations - The construction of core and shell buildings is part of the strategy to de-risk projects and provide certainty to potential tenants regarding delivery timelines [44][46] Question: Thoughts on Rockdale site development - Rockdale shares many attractive characteristics with Corsicana, and while Corsicana is the near-term focus, Rockdale remains a viable option for future development [55][56] Question: Hiring strategy and team development - The company is actively building its team in alignment with business development phases, focusing on key roles in development, engineering, and sales [61][63]