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Riot Platforms, Inc. (RIOT)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 was a strong finish: total revenue rose to $142.6M, EPS was $0.43, and Adjusted EBITDA surged to $296.3M, driven by higher Bitcoin prices, increased deployed hash rate, and fair-value accounting on Bitcoin holdings .
  • Segment revenue skewed heavily to Bitcoin mining ($126.3M) with mining gross margin at 50%; Engineering revenue was $11.6M amid backlog and supply chain normalization .
  • Key operational metrics improved: BTC produced rose 37% QoQ to 1,516, ending hash rate reached 31.5 EH/s; cost to mine increased to $42,011/BTC on higher spot power and network difficulty (kWh cost rose to ~$0.038) .
  • Management pivoted capacity toward AI/HPC at Corsicana, lowering end‑2025 hash rate guidance to 38.4 EH/s (from 46.7 EH/s), and outlined $198M of fully-funded 2025 capex; SG&A cash run-rate guided to $30–33M/quarter due to elevated litigation and advisory costs .
  • Catalysts: pursuit of AI/HPC contracts on blue-chip counterparties, large BTC treasury (17,722 BTC YE), and improved uptime; but watch power costs, litigation, and engineering execution .

What Went Well and What Went Wrong

What Went Well

  • “Record revenue of $376.7M and net income of $109.4M” for FY 2024, supported by retaining mined BTC and fair-value accounting; Q4 delivered EPS of $0.43 and Adjusted EBITDA of $296.3M .
  • Operational scale: deployed hash rate reached 31.5 EH/s; Q4 BTC production increased 37% QoQ despite a 16% rise in global network hash rate .
  • Strategic positioning: management engaged advisors (Evercore, Northland) and added data center expertise to the board to monetize Corsicana/Rockdale power via AI/HPC .

What Went Wrong

  • Cost inflation: direct cost to mine rose to $42,011/BTC as spot power procurement at Corsicana and fewer curtailment credits increased power costs to ~$0.038/kWh .
  • Elevated SG&A from one‑offs: ~$22M in Q4 litigation/advisory items lifted cash SG&A run-rate guidance to $30–33M/quarter near‑term .
  • Guidance reduction: end‑2025 hash rate revised down to 38.4 EH/s (from 46.7 EH/s) to preserve optionality for AI/HPC, and Kentucky timelines shifted out to 2026–2027 .

Financial Results

Quarterly financials

MetricQ2 2024Q3 2024Q4 2024
Total Revenue ($USD Millions)$70.0 $84.8 $142.6
EPS (Diluted, $USD)$(0.32) $(0.54) $0.43
Gross Profit ($USD Millions)$30.3 $24.3 $55.7
Gross Margin (%)43% 29% 39%
Adjusted EBITDA ($USD Millions)$(75.2) $(3.6) $296.3
Net Income ($USD Millions)$(84.4) $(154.4) $136.4

YoY comparison (Q4)

MetricQ4 2023Q4 2024
Total Revenue ($USD Millions)$78.8 $142.6
EPS (Diluted, $USD)$0.23 $0.43
Gross Margin (%)26% 39%

Segment breakdown

Segment Revenue ($USD Millions)Q2 2024Q3 2024Q4 2024
Bitcoin Mining$55.8 $67.5 $126.3
Engineering$9.6 $12.6 $11.6
Other$4.6 $4.7 $4.6
Bitcoin Mining Gross Margin (%)62% 42% 50%

KPIs

KPIQ2 2024Q3 2024Q4 2024
BTC Produced (#)844 1,104 1,516
Cost to Mine per BTC ($)$25,327 $35,376 $42,011
Direct Power Cost/BTC ($)$14,890 $26,673 $33,281
Direct Non-Power Cost/BTC ($)$10,437 $8,703 $8,730
All-in Cost of Power (c/kWh)2.7 3.1 ~3.8 (0.038 $/kWh)
Ending Deployed Hash Rate (EH/s)22.0 28.2 31.5
Avg Network Hash Rate (EH/s)604 625 728

Results vs. Wall Street consensus (S&P Global)

MetricQ4 2024 ActualQ4 2024 Consensus
Revenue ($USD Millions)$142.6 Unavailable – S&P Global data could not be retrieved (request limit exceeded)
EPS (Diluted, $USD)$0.43 Unavailable – S&P Global data could not be retrieved (request limit exceeded)

Note: Consensus comparisons unavailable due to S&P Global request limit at time of query.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Deployed Hash Rate (EH/s)End‑202546.7 EH/s (Q3’24) 38.4 EH/s (Q4’24) Lowered (AI/HPC pivot reduced growth by ~8 EH/s)
Hash Rate Trajectory2025 (quarterly)Q4’25: 46.7 EH/s Q1: 34.5; Q2: 37.0; Q3: 38.4; Q4: 38.4 EH/s Reprofiled lower
Cash SG&A Run-RateQ4’24 onward$27–$30M/quarter (Q3 call) $30–$33M/quarter (Q4 call) Raised (temporary litigation/advisory impact)
2025 Capex (Key Items)FY 2025~$663M to YE 2025 (broader plan, Q3) $198M (key, fully-funded) Reframed to key capex items
Engineering RevenueFY 2025EN/A~ $100M run-rate target New guidance

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 & Q3)Current Period (Q4)Trend
AI/HPC monetization of powerCautious on pivot; began receiving inbounds; initiated Corsicana Phase II for mining; considering optionality Engaged Evercore/Northland; added DC experts to board; actively pursuing blue‑chip counterparty deals; 1.0 GW Corsicana and 0.7 GW Rockdale positioned Increasing strategic focus
Power strategy and costsQ2 all‑in 2.7 c/kWh; curtailment credits strong Q3 all‑in 3.1 c/kWh; fewer credits vs 2023 Q4 kWh cost ~3.8c; higher spot power mix and fewer credits
Operational uptimeEmphasis on improving utilization; M60 deployments Q3: >80% utilization in Oct; targeting >95% (ex-curtailment) Continued focus; uplift expected with fleet and processes
Engineering segmentSupply chain delays in 2024; backlog; demand from DC/O&G E4A acquisition; services margins; $100M 2025 run-rate target Recovery, synergies, scaling
Litigation/SG&AQ3: run-rate $27–$30M; one‑offs present Q4: ~$22M one‑offs; run-rate $30–$33M near-term Temporary elevation
BTC treasury & capitalRetained BTC; block mining acquisition; MicroBT options 0.75% converts raised ~$579M to buy ~5,784 BTC; YE BTC 17,722 Larger BTC balance; conservative leverage policy

Management Commentary

  • CEO on BTC treasury and value creation: “Holding all of our Bitcoin versus selling... resulted in an increase of $120 million in value... our bullish belief in Bitcoin has not wavered” .
  • CFO on cost drivers: “Cost to mine... totaled $42,011 per Bitcoin... power costs increased... as a greater proportion... at Corsicana... at spot market rates... with fewer offsetting power credits” .
  • CEO on AI/HPC strategy: “We believe Corsicana offers the most compelling opportunity... 400 MW today + 600 MW substation in early 2026... one gigawatt of power available... an extremely rare offering” .
  • CFO on SG&A outlook: “We think our 2024 cash run-rate... ~$30–$33 million per quarter... difficult to anticipate litigation/M&A items” .
  • Corporate development on E4A: “E4A generated $28.2M revenue and $4.6M EBITDA in 2024... adds higher‑margin recurring services... path to $100M in 2025” .

Q&A Highlights

  • AI/HPC deal structure and counterparties: management prioritizes blue‑chip counterparties enabling financing and premium valuations; open to lease, powered shell, build‑to‑suit, or asset sale depending on value maximization .
  • Land and campus scale: expanding land at Corsicana; campuses need not be adjacent—Rockdale/Corsicana pairing enables up to 1.7 GW for a single hyperscaler .
  • Power agreements and curtailment: existing PPAs do not require demand response; Bitcoin mining uses voluntary curtailment; AI/HPC would be firm load .
  • SG&A and one‑offs: Q4 had ~$22M one‑time costs (litigation/advisory); run-rate cash SG&A guided at $30–$33M/quarter near term .
  • Hash rate and operations: 2025 mining hash rate expected +22% to 38.4 EH/s under revised plan; Kentucky growth pushed out to optimize power and economics .

Estimates Context

  • Wall Street consensus (S&P Global) for Q4 2024 revenue and EPS was unavailable at time of query due to request limits; as a result, explicit beat/miss determination vs consensus could not be made. Management’s quarter showed strong QoQ growth and YoY expansion on revenue and EPS, with cost to mine elevated on power mix and network difficulty .
  • Where estimates are needed for future revisions, watch for: AI/HPC contract timing and terms, Engineering ramp to ~$100M run-rate, and SG&A normalization post‑litigation .

Key Takeaways for Investors

  • Q4 operational and financial momentum: revenue $142.6M, EPS $0.43, Adj. EBITDA $296.3M—reflects leverage to BTC prices, scale, and fair-value accounting; expect sensitivity to BTC and hash price trends .
  • Mining economics: cost to mine rose to $42,011/BTC on higher spot power and network difficulty; monitor ERCOT power dynamics, curtailment credits, and Corsicana/Rockdale power mix .
  • Strategic optionality: pivoting capacity toward AI/HPC with 1.0 GW Corsicana and 0.7 GW Rockdale could unlock higher‑quality cash flows and valuation multiples; timing and counterparties are key .
  • Guidance reset: end‑2025 hash rate lowered to 38.4 EH/s; short‑term mining growth focuses on Kentucky and uptime gains—watch quarterly deployment and utilization metrics .
  • BTC balance sheet: YE holdings 17,722 BTC and 0.75% converts used to add ~5,784 BTC; internal leverage ceiling tied to BTC value (~40%) limits balance sheet risk .
  • Engineering acceleration: E4A adds services margin and synergies; management targets ~$100M 2025 run-rate—execution on backlog and capacity is a medium‑term driver .
  • Near‑term trading lens: stock likely reacts to AI/HPC deal headlines, monthly production/uptime improvements, and litigation/SG&A normalization; sustained BTC price strength is supportive .

Other Relevant Press Releases (Q4 2024 context)

  • Convertible notes: $594.4M 0.75% due 2030, ~$579M net proceeds deployed to acquire BTC (Dec 10 & 16) .
  • Q3 results press release (for trend context): revenue $84.8M; mining revenue $67.5M; cost to mine $35,376/BTC; FY’25 hash guidance reduced to 46.7 EH/s at the time .

Prior Two Quarters’ Earnings (Trend Analysis Recap)

  • Q3 2024: Revenue $84.8M; EPS $(0.54); mining margin 42%; BTC produced 1,104; cost to mine $35,376/BTC; ending hash rate 28.2 EH/s .
  • Q2 2024: Revenue $70.0M; EPS $(0.32); mining margin 62% (non-GAAP allocation); BTC produced 844; cost to mine $25,327/BTC; ending hash rate 22.0 EH/s .