Riot Platforms, Inc. Q3 FY2025 earnings call

• Initiated Core & Shell development of the first 2 buildings at Corsicana data center campus, totaling 112 megawatts of critical IT capacity, with construction starting in Q1 2026.
• Acquired 67 acres of land adjacent to Corsicana, simplifying development of 1 gigawatt of approved power capacity and completing campus design.
• Completed basis of design for standard data center build, deepening technical engagement with customers and building in-house data center expertise.
• Bitcoin mining operations produced 1,406 Bitcoin, with a utilization rate of 86% and $31 million in power credits generated.
• Engineering business provides strategic advantages in supply chain control and cost savings, with cumulative CapEx savings of $23 million since acquiring ESS Metron.
• SG&A reduced through settlement of legacy contracts, reduction in stock-based compensation, and disciplined budgeting.

For the third quarter of 2025, Riot reported total revenue of $180.2 million, consisting of Bitcoin mining and engineering revenue. Bitcoin mining revenue was $160.8 million, with 1,406 Bitcoin produced. The gross profit from Bitcoin mining was $95.7 million. Engineering is a core asset that differentiates Riot as it provides vertically integrated manufacturing, commissioning, and maintenance expertise for data center-grade power systems. Revenue from Bitcoin mining and engineering contributed to the overall financial performance, with Bitcoin mining representing a significant portion of the revenue at 89.2% ($160.8M out of $180.2M).

• Anticipate continued development of data center business with the initiation of Core & Shell construction at Corsicana, aiming to leverage competitive tension in leasing process.
• Pipeline of nearly 2 gigawatts of secured utility load power, with further development plans to be announced as customer discussions progress.
• Focus on maximizing value from power portfolio, progressively shifting to data centers and expanding power assets where advantageous.

• Market risks related to the demand for data center capacity and power supply constraints.
• Execution risks in data center development, including potential delays in construction or leasing progress.
• Uncertainties in the adoption of data center solutions by prospective tenants and the impact of competitive landscape.

Q: Please give an update on discussions with potential tenants for the first few builds at Corsicana.

A: Riot is focused on high-quality credit tenants, has taken steps to derisk sites and ensure credibility, completed basis of design, and initiated Core & Shell development. There is significant interest in the Corsicana site due to power shortage and demand for reliable delivery.

Q: Is there additional power that could be procured for the pipeline?

A: Riot is active in expanding power portfolio, but primary focus is on developing existing 1.7 gigawatts at Corsicana and Rockdale, with evaluation of opportunities but prioritizing current development.

Q: How does the commencement of Core & Shell construction factor into leasing negotiations?

A: Commencing Core & Shell construction derisks projects, provides certainty on delivery timelines, and positions Riot to attract top-tier tenants by showing ability to deliver on time with a ready-to-go infrastructure.

Q: Thoughts on Rockdale as a data center site?

A: Rockdale has large-scale secured power, active operation, ample land, and proximity to Austin, but current focus is on Corsicana with Rockdale as a future development opportunity.

Q: Plans for neocloud and pricing negotiation due to location?

A: Build-to-suit is priority, but locations and ready-for-service dates position Riot to command strong economics and attract high-quality tenants, including neoclouds.

Q: Hiring progress and pipeline expansion goals?

A: Made key hires in data center team, with hiring continuing to support development. No specific year-end goals for pipeline expansion, but strategic priority to build pipeline.

Q: Design replicability and progress impact on leasing discussions?

A: Standard design allows efficiency in procurement and scheduling, with discussions ongoing with tenants throughout the development process.

Q: Capital outlays and PUE improvement?

A: $214 million for Core & Shell development, with Bitcoin mining generating cash flows for funding. Base case PUE is ~1.49, with efforts to improve for better economics.