Riot Reports $79.3 Million in Total Revenue and Successful Energization of New Corsicana Facility CASTLE ROCK, Colo., May 01, 2024 (GLOBE NEWSWIRE) -- 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 ...