Riot Platforms, a leading Bitcoin mining company, has garnered significant attention from reputable “blue-chip” companies interested in collaborating on artificial intelligence (AI) and high-performance computing (HPC) projects. Jason Les, the CEO of Riot Platforms, disclosed during the Oct. 30 earnings call that the company has been approached by financially sound entities proposing long-term partnerships to utilize Riot’s extensive power capacity.
Les noted that Riot’s strong reputation and its substantial energy resources, including a 750-megawatt facility in Rockdale and a one-gigawatt capacity site in Corsicana, are key factors attracting these potential partners. He emphasized that the interest is for large-scale power allocations, in the range of hundreds of megawatts, highlighting the scale and seriousness of the inquiries.
The company’s foray into AI could be a strategic move, following the example of Core Scientific, another Bitcoin miner, which is projected to generate over $8 billion in a 12-year agreement with AI Hyperscaler CoreWeave. This diversification could offer a significant revenue stream for Riot, especially in light of the company’s financial performance in the third quarter.
Despite a 65% increase in total revenue to $80 million, driven by higher Bitcoin prices and increased operational output, Riot reported a net loss of $154.4 million, or $0.54 per share, for Q3. This loss is a substantial increase from the $80 million loss recorded in the same period last year. The company’s average cost to mine a Bitcoin, excluding depreciation, rose to $35,376 during the quarter, impacted by a 75% reduction in power credits and the recent Bitcoin halving event in April 2024, which reduced block rewards by half. Additionally, a 59% increase in the global network hash rate contributed to the higher mining costs.
As Riot Platforms navigates these financial challenges, the potential expansion into AI and HPC through strategic partnerships could provide a timely boost to its revenue streams and position the company for future growth in the evolving technology landscape.