Riot Platforms, Inc. Q1 FY2026 earnings call

Key milestones for the quarter included AMD exercising a 25 megawatt expansion option, bringing total contracted footprint at Rockdale to 50 megawatts. Initial data center capacity for this expansion will start in November 2026. Progress at Corsicana facility with initiation of core and shell development using 168 megawatt standard design. Financing strategy using operating cash flow and disciplined Bitcoin sales to fund initiatives without issuing equity. Engineering segment with $193.4 million backlog, 90% of which driven by data center sector demand, and vertical integration for supply chain control.

Bitcoin mining segment: Produced 1,473 Bitcoins in the first quarter, ended the quarter with a deployed hash rate of 42.5 exahash. Generated $21 million in power curtailment credits, driving net cost of power down to 3 cents per kilowatt hour, thereby lowering direct cost to mine Bitcoin to $44,629 per Bitcoin. Data center segment: In the first quarter, the data center segment generated $33.2 million in total revenue. The majority of the revenue, $32.2 million, was from tenant fit-out services. There was approximately $900,000 in operating lease revenue, with a 91% gross margin in the quarter.

Anticipate annualized operating lease revenue run rate of $37.8 million by the end of 2026 and $55.6 million by the end of 2027 as AMD's full 50 megawatt footprint comes online. Corsicana core and shell development on track for completion in Q2 2027. Actively engaging with institutional lenders for tenant-backed project financing for AMD lease.

Risks include potential market fluctuations affecting data center demand, delays in power supply or project execution, and changes in tenant leasing plans that could impact revenue projections.

Q: On the 25 megawatt expansion with AMD, talk about puts and takes.

A: Expansion under original lease, total revenue of $636 million during primary 10-year period, $51 million in average annual NOI, CAPEX per megawatt reduced to $3.3 million from $3.6 million by leveraging prior build-out work.

Q: Update on lease discussions beyond AMD.

A: Discussions have advanced considerably, with interest in Rockdale and Corsicana, no gating factors, confident in ability to succeed based on progress and engagement.

Q: Financing for AMD.

A: Positive feedback on financing due to strong cash flow profile, attractive development yield, and AMD's investment grade status, expecting competitive spreads in financing structure