RIOT — Riot Platforms, Inc.

Riot Platforms Q1 2026 Earnings Call Summary

1. Key Financial Results and Metrics

• Total Revenue: $167 million, with $33.2 million from the new Data Center segment.
• GAAP Net Loss: $500 million ($1.44 per diluted share).
• Adjusted EBITDA Loss: $311 million, primarily due to non-cash adjustments related to Bitcoin holdings and depreciation.
• Bitcoin Production: 1,473 Bitcoin mined, with a deployed hash rate of 42.5 exahash.
• Cost of Power: Reduced to $0.03 per kilowatt hour, lowering Bitcoin mining costs to $44,629 per Bitcoin (a 26% reduction from Q4 2025).
• Bitcoin Holdings: 15,679 Bitcoin valued at approximately $1.1 billion.

2. Strategic Updates and Business Highlights

• AMD Partnership: Expanded lease agreement with AMD to 50 megawatts at the Rockdale facility, with total revenue projected at $636 million over the contract period. Initial 5 megawatts delivered in January, with remaining capacity on track for delivery in May.
• Corsicana Development: Progressing on a new 168-megawatt core and shell building, consolidating previous plans into a single structure, enhancing capacity and efficiency.
• Engineering Segment: Strong backlog of $193.4 million, primarily driven by data center demand, with strategic advantages in procurement and manufacturing.
• Capital Discipline: Funded growth initiatives through operating cash flow and disciplined Bitcoin sales, avoiding equity dilution.

3. Forward Guidance and Outlook

• Revenue Run Rate: Anticipated to reach $37.8 million by year-end 2026 and $55.6 million by the end of 2027 as AMD's full capacity comes online.
• Future Leases: Actively pursuing additional leases at Rockdale and Corsicana, with ongoing discussions with potential tenants.
• Development Timeline: Expecting to complete core and shell development at Corsicana by Q2 2027, with a total planned capacity of 756 megawatts.

4. Bad News, Challenges, or Points of Concern

• Net Losses: Significant GAAP net loss attributed to non-cash accounting adjustments raises concerns about underlying profitability.
• Market Conditions: Competitive pressures and the need for rapid scaling in a constrained power market could pose risks to meeting growth targets.
• Leasing Uncertainty: While there is substantial interest in leasing, the unpredictable nature of securing contracts with hyperscalers remains a challenge.

5. Notable Q&A Insights

• AMD Expansion Economics: The expansion contract maintains similar terms to the initial lease, with lower CapEx due to leveraging prior building preparations.
• Lease Discussions: Positive momentum in leasing discussions with no current gating items; however, timing for new leases remains uncertain.
• Demand Signals: Strong demand for data center capacity driven by AI commercialization, though individual buyer urgency may vary.
• Financing Strategy: Continued reliance on Bitcoin sales for funding, with plans to diversify financing sources as leasing scales.

Overall, Riot Platforms is positioned for growth with strong partnerships and a disciplined approach to capital management, despite facing challenges related to market conditions and financial losses.