Riot Platforms, Inc. Q1 FY2025 earnings call

• Achieved an average uptime of nearly 90% in Bitcoin Mining operations during Q1 2025.
• Acquired Rhodium Assets and settled litigation, which enhances hash rate capacity, provides power capacity, and reduces operating losses.
• Prudent financial management with limited use of ATM program, accessed other financing sources like Bitcoin collateralized credit facility with Coinbase.
• Made progress in AI/HPC data center business, including completion of Altman Solon's feasibility study for Corsicana, land acquisitions, and team additions.

Bitcoin Mining revenue totaled $142.9 million in Q1 2025, a 13% increase from the prior quarter. Engineering revenue was $13.9 million, a 20% increase from the prior quarter. Bitcoin Mining gross margin was 48% in Q1 2025, nearly flat with the prior quarter's 50%. Engineering division saw a return to profitability with a gross profit of $2.1 million and a 15% gross margin.

• Hash rate growth forecast for 2025 remains unchanged but potential upside with Rhodium acquisition.
• Focus on build-to-suit data center as optimal path to maximize shareholder value, working on assembling a data center team and completing basis of design for Corsicana data center campus.

• Market volatility affecting Bitcoin price and mark-to-market adjustments.
• Tariffs potentially impacting hash rate growth plans.
• Uncertainties in litigation expenses, such as ongoing litigation with GMO.

Q: Nick Giles asked about learnings from the large flexible load task force and potential economics of capital projects.

A: Jason Les responded that Riot is involved in public policy efforts, focusing on maximizing shareholder value and advancing site development. It's too early to determine specific target CapEx for projects.

Q: William Copps asked about tone shift in AI/HPC demand and decision-making timelines.

A: Jason Les stated demand for AI/HPC remains robust, with strong feedback from hyperscalers and potential financing partners.

Q: Paul Golding inquired about vertical integration with ESS Metron and backup generation.

A: Jason Les mentioned ESS Metron's vertical integration is a differentiator, and the Engineering division has expertise in backup generation but no specific commentary on lead time or supply chain details.

Q: Ben Sommers asked about global hash trend and market share.

A: Jason Les noted tariffs impact miners' growth plans, Riot is insulated with long-term miner purchase agreement, and low-cost operations ensure margin through hash price volatility.

Q: Darren Aftahi asked about Corsicana site capacity, land acquisition, and lease discussions.

A: Jason Les explained multiple development strategies with available land, emphasizing that additional land acquisition allows more development options and that civil and electrical work would be needed for additional phases, with lease discussions ongoing.