Riot Platforms, Inc. (NASDAQ: RIOT) (“Riot” or “the
Company”), an industry leader in vertically integrated
Bitcoin mining, reported financial results for the three-month
period ended March 31, 2024. The unaudited financial statements and
accompanying presentation materials are available on Riot’s
website.
“I am excited to present results for Riot for
the first quarter of 2024, during which we achieved a number of
significant milestones which further solidify our growth path,”
said Jason Les, CEO of Riot. “This quarter, Riot reported net
income of $211.8 million and earnings per share of $0.82 which are
new record highs for our quarterly results. Additionally, we
reported $245.7 million in adjusted EBITDA for the quarter, another
record high for Riot, rounding out strong financial performance for
the quarter.
“Last month, Riot also announced the
energization of our Corsicana Facility, which we believe will be
the largest dedicated Bitcoin mining facility in the world once
fully developed. Miners deployed at our Corsicana Facility are
already hashing, and we remain on track to increase our self-mining
hash rate capacity to 31 EH/s by the end of the year, which will
nearly triple our existing hash rate capacity. With up to 1 GW of
total capacity when fully developed, the Corsicana Facility
provides Riot with a clear growth pipeline unrivalled in our
industry and gives us a strong foundation upon which we will
continue scaling our Bitcoin mining business in the future.”
First Quarter 2024 Financial and
Operational Highlights
Key financial and operational highlights for the
first quarter include:
- Total revenue of $79.3 million, as
compared to $73.2 million for the same three-month period in 2023.
The increase was primarily driven by a 131% increase in Bitcoin
prices as compared to the same three-month period in 2023,
partially offset by lower Bitcoin production.
- Produced 1,364 Bitcoin during the
quarter, which represented a decrease of 36% from the 2,115 Bitcoin
mined during the three months ended March 31, 2023, due primarily
to the significant increase in the Bitcoin network difficulty,
which has more than doubled since January 2023.
- The average cost to mine Bitcoin
was $23,034 in the quarter, as compared to $9,438 per Bitcoin for
the same three-month period in 2023. The increase was primarily
driven by an increase of 89% in global network hash rate as
compared to the same three-month period in 2023.
- Earned $5.1 million in power
curtailment credits during the quarter, as compared to $3.1 million
in power curtailment credits earned for the same three-month period
in 2023.
- Following the termination of the
legacy Data Center Hosting business, reportable segments have
changed to reflect the two primary business segments of Riot:
Bitcoin Mining and Engineering.
- Bitcoin Mining revenue of $74.6
million for the quarter, as compared to $48.0 million for the same
three-month period in 2023, primarily driven by higher average
Bitcoin prices.
- Engineering revenue of $4.7 million
for the quarter, as compared to $16.1 million for the same
three-month period in 2023.
- Maintained industry-leading
financial position, with $692.5 million in working capital,
including $688.5 million in cash on hand, and 8,490 in unencumbered
Bitcoin (equating to $605.6 million assuming a market price for one
Bitcoin on March 31, 2024 of approximately $71,333), all of which
were produced by the Company’s self-mining operations, as of March
31, 2024.
First Quarter 2024 Financial
Results
Total revenue for the three-month period ended
March 31, 2024 was $79.3 million, and consisted of $74.6 million in
Bitcoin Mining revenue and $4.7 million in Engineering revenue.
Bitcoin Mining revenue in excess of Bitcoin
Mining cost of revenue for the quarter was $33.5 million (45% of
mining revenue), as compared to $26.1 million (54% of mining
revenue) for the same three-month period in 2023, an increase of
$7.4 million driven by higher Bitcoin prices during the quarter and
an increase in revenues from the expansion of Bitcoin mining
capacity at the Rockdale Facility. Bitcoin Mining cost of revenue
consists primarily of direct production costs of mining operations,
including electricity, labor, and insurance, but excludes
depreciation and amortization.
Engineering cost of revenue in excess of
Engineering revenue for the quarter was $1.3 million, as compared
to Engineering revenue in excess of Engineering cost of revenue of
$0.5 million (3% of Engineering revenue) for the same three-month
period in 2023. This decrease was primarily due to decreased
receipts of materials resulting from increased competition for
direct materials due to supply chain constraints.
Power curtailment credits received totaled
approximately $5.1 million for the quarter, as compared to $3.1
million during the same three-month period in 2023 and equates to
approximately 98 Bitcoin for the 2024 period as computed by using
average daily closing Bitcoin prices on a monthly basis.
If power credits were directly allocated to
Bitcoin Mining cost of revenue, Bitcoin Mining cost of revenue
would have decreased by $5.1 million, increasing Bitcoin Mining
revenue in excess of cost of revenue to $38.6 million (52% of
Bitcoin Mining revenue) on a non-GAAP basis.
Selling, general and administrative expenses
during the quarter totaled $57.7 million, an increase of $12.7
million relative to the same period in 2023. The increase was
primarily due to increases in stock compensation expenses of $34.3
million related to new grants under our long-term incentive
program, compensation expenses of $4.4 million as a result of
hiring additional employees to support our ongoing growth,
increased legal and professional fees of $2.5 million primarily
related to ongoing litigation and public company compliance, and
$3.6 million for other costs primarily attributable to ongoing
growth.
Net income for the quarter was $211.8 million,
or $0.82 per share, compared to net income of $18.5 million, or
$0.11 per share, for the same period in 2023. The net income for
the quarter included a change in fair value of Bitcoin equal to
$234.1 million, non-cash stock-based compensation expense of $32.0
million, and depreciation and amortization of $32.3 million.
Non-GAAP Adjusted EBITDA for the quarter was
$245.7 million, as compared to $81.7 million for the same
three-month period in 2023.
Hash Rate Growth
Riot anticipates achieving a total self-mining
hash rate capacity of 31 EH/s by the end of 2024.
On April 18th, Riot announced the successful
energization of the Corsicana Facility substation. The Corsicana
Facility will have a total capacity of 1 GW when fully developed,
at which point it is expected to be the largest known Bitcoin
mining facility in the world by developed capacity. The recently
energized substation will power the initial 400 MW phase of
development of the Corsicana Facility. This initial phase is
expected to add 16 EH/s to Riot’s self-mining capacity by the end
of 2024. The first batch of miners in the first 100 MW building,
Building A1, have been installed and are already hashing, and
miners will continue to be deployed in Building A1 until a total
capacity of 3.7 EH/s is reached.
As previously disclosed in June 2023, Riot
entered into a long-term master purchase agreement with MicroBT,
which included an initial order of 33,280 immersion miners for the
Corsicana Facility. Effective December 1, 2023, Riot executed a
second order under the MicroBT master agreement for an additional
66,560 immersion miners, primarily for the Corsicana Facility. In
February 2024, Riot entered into a third order with MicroBT, for
31,500 air-cooled miners for the Rockdale Facility. Approximately
17,000 miners in the order are expected to replace underperforming
machines currently operating in the facility, and the deployment of
the remaining 14,500 miners will contribute additional hash rate
capacity to our self-mining operations at the Rockdale
Facility.
Collectively, the three purchase orders will add
an anticipated 28 EH/s to Riot’s self-mining capacity. Deployment
of these miners intended for the Corsicana Facility has begun and
is estimated to be completed by the second half of 2025. Deployment
of the miners intended for the Rockdale Facility is expected to
begin in Q2 2024 and be completed in Q3 2024.
Upon full deployment in 2025, Riot anticipates a
total self-mining hash rate capacity of 41 EH/s.
ATM Offerings
In February 2024, the Company registered an
offering under its at-the-market equity offering program, under
which it could offer and sell up to $750.0 million in shares of the
Company’s common stock.
During the three months ended March 31, 2024,
the Company received net proceeds of approximately $345.7 million
($353.2 million of gross proceeds, net of $7.5 million in
commissions and expenses) from the sale of 26,169,300 shares of its
common stock at a weighted average fair value of $13.50 per share
under its at-the-market equity offering program.
Subsequent to March 31, 2024, and through April
30, 2024, the Company received net proceeds of approximately $154.1
million from the sale of 14,789,000 shares of its common stock at a
weighted average fair value of $10.63 per share under its
at-the-market equity offering program.
About Riot Platforms, Inc.
Riot’s (NASDAQ: RIOT) vision is to be the
world’s leading Bitcoin-driven infrastructure platform.
Our mission is to positively impact the sectors,
networks and communities that we touch. We believe that the
combination of an innovative spirit and strong community
partnership allows the Company to achieve best-in-class execution
and create successful outcomes.
Riot is a Bitcoin mining and digital
infrastructure company focused on a vertically integrated strategy.
The Company has Bitcoin mining operations in central Texas and
electrical switchgear engineering and fabrication operations in
Denver, Colorado.
For more information, visit
www.riotplatforms.com.
Safe Harbor
Statements in this press release that are not
historical facts are forward-looking statements that reflect
management’s current expectations, assumptions, and estimates of
future performance and economic conditions. Such statements rely on
the safe harbor provisions of Section 27A of the Securities Act of
1933 and Section 21E of the Securities Exchange Act of 1934.
Because such statements are subject to risks and uncertainties,
actual results may differ materially from those expressed or
implied by such forward-looking statements. Words such as
“anticipates,” “believes,” “plans,” “expects,” “intends,” “will,”
“potential,” “hope,” and similar expressions are intended to
identify forward-looking statements. These forward-looking
statements may include, but are not limited to, statements about
the Company’s plans, objectives, expectations, and intentions. The
risks and uncertainties that could cause actual results to differ
from those expressed in forward-looking statements include, but are
not limited to: unaudited estimates of Bitcoin production; our
future hash rate growth (EH/s); the anticipated benefits,
construction schedule, and costs associated with the Corsicana site
expansion; our expected schedule of new miner deliveries; the
impact of weather events on our operations and results; our ability
to successfully deploy new miners; potential negative impacts on
our results of Bitcoin production due to the variance in our mining
pool rewards; megawatt (“MW”) capacity under development; our
potential inability to realize the anticipated benefits from
immersion cooling; our ability to access sufficient additional
capital for future strategic growth initiatives; the possibility
that the integration of acquired businesses may not be successful,
or such integration may take longer or be more difficult,
time-consuming or costly to accomplish than anticipated; failure to
otherwise realize anticipated efficiencies and strategic and
financial benefits from our acquisitions; the anticipated impacts
of the Bitcoin “halving”; and the impact of COVID-19 on our
suppliers in connection with our estimated timelines. Detailed
information regarding the factors identified by the Company’s
management which they believe may cause actual results to differ
materially from those expressed or implied by such forward-looking
statements in this press release may be found in the Company’s
filings with the U.S. Securities and Exchange Commission (the
“SEC”), including the risks, uncertainties and other factors
discussed under the sections entitled “Risk Factors” and
“Cautionary Note Regarding Forward-Looking Statements” of the
Company’s Annual Report on Form 10-K for the fiscal year ended
December 31, 2023, as amended, and the other filings the Company
makes with the SEC, copies of which may be obtained from the SEC’s
website, www.sec.gov. All forward-looking statements included in
this press release are made only as of the date of this press
release, and the Company disclaims any intention or obligation to
update or revise any such forward-looking statements to reflect
events or circumstances that subsequently occur, or of which the
Company hereafter becomes aware, except as required by law. Persons
reading this press release are cautioned not to place undue
reliance on such forward-looking statements.
For further information, please
contact:
Investor Contact:Phil McPhersonIR@Riot.Inc
303-794-2000 ext. 110
Media Contact:Alexis Brock303-794-2000 ext. 118PR@Riot.Inc
Non-U.S. GAAP Measures of Financial
Performance
In addition to financial measures presented
under generally accepted accounting principles in the United States
of America (“GAAP”), we consistently evaluate our use of and
calculation of non-GAAP financial measures such as “Adjusted
EBITDA.” EBITDA is computed as net income before interest, taxes,
depreciation, and amortization. Adjusted EBITDA is a financial
measure defined as EBITDA, adjusted to eliminate the effects of
certain non-cash and/or non-recurring items that do not reflect our
ongoing strategic business operations, which management believes
results in a performance measurement that represents a key
indicator of the Company’s core business operations of Bitcoin
mining. The adjustments include fair value adjustments such as
derivative power contract adjustments, equity securities value
changes, and non-cash stock-based compensation expense, in addition
to financing and legacy business income and expense items. We
exclude impairments and gains or losses on sales or exchanges of
Bitcoin from our calculation of Adjusted EBITDA for all periods
presented.
We believe Adjusted EBITDA can be an important
financial measure because it allows management, investors, and our
board of directors to evaluate and compare our operating results,
including our return on capital and operating efficiency from
period-to-period by making such adjustments. Additionally, Adjusted
EBITDA is used as a performance metric for share-based
compensation.
Adjusted EBITDA is provided in addition to, and
should not be considered to be a substitute for, or superior to,
net income, the most comparable measure under GAAP for Adjusted
EBITDA. Further, Adjusted EBITDA should not be considered as an
alternative to revenue growth, net income, diluted earnings per
share or any other performance measure derived in accordance with
GAAP, or as an alternative to cash flow from operating activities
as a measure of our liquidity. Adjusted EBITDA has limitations as
an analytical tool, and you should not consider such measures
either in isolation or as substitutes for analyzing our results as
reported under GAAP.
The following table reconciles Adjusted EBITDA
to Net income (loss), the most comparable GAAP financial
metric:
|
|
Three Months Ended |
|
|
March 31, |
|
|
2024 |
|
2023 |
Net income (loss) |
|
$ |
211,814 |
|
|
$ |
18,513 |
|
Interest (income) expense |
|
|
(7,805 |
) |
|
|
3,830 |
|
Income tax expense (benefit) |
|
|
(102 |
) |
|
|
(4,969 |
) |
Depreciation and amortization |
|
|
32,343 |
|
|
|
59,340 |
|
EBITDA |
|
|
236,250 |
|
|
|
76,714 |
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
Stock-based compensation expense |
|
|
32,000 |
|
|
|
(2,296 |
) |
Change in fair value of derivative asset |
|
|
(20,232 |
) |
|
|
5,778 |
|
Casualty-related charges (recoveries), net |
|
|
(2,300 |
) |
|
|
1,526 |
|
Other (income) expense |
|
|
(8 |
) |
|
|
— |
|
License fees |
|
|
(24 |
) |
|
|
(24 |
) |
Adjusted EBITDA |
|
$ |
245,686 |
|
|
$ |
81,698 |
|
Photos accompanying this announcement are available
at:https://www.globenewswire.com/NewsRoom/AttachmentNg/655f8c6c-b52d-412e-b93a-9e52a59c3d1chttps://www.globenewswire.com/NewsRoom/AttachmentNg/11431087-d2ec-4229-9a23-1b63282ead4d
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