Riot Platforms (RIOT) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $70 million, with Bitcoin Mining revenue up year-over-year and Engineering revenue down, as Bitcoin production fell 52% due to the April 2024 halving and a 68% rise in network hash rate.

• Net loss for Q2 2024 was $84.4 million, or $(0.32) per share, including a $76.4 million mark-to-market loss on Bitcoin holdings.

• Deployed hash rate nearly doubled to 22 EH/s as of June 30, 2024, surpassing targets, with 2024 and 2025 guidance raised to 36 EH/s and 56 EH/s, respectively.

• Completed acquisition of Block Mining in Kentucky, adding 60 MW of capacity and a pipeline for further expansion, and energized the Corsicana facility.

• Maintained a strong balance sheet with $639 million in cash and marketable securities, 9,334 Bitcoin valued at $585 million, and no long-term debt.

Financial highlights

• Bitcoin Mining revenue rose to $55.8 million, up 12% year-over-year, while Engineering revenue declined to $9.6 million.

• Adjusted EBITDA was $(75.2) million, compared to $24.3 million in Q2 2023.

• Bitcoin mining margin was 37% GAAP and 62% non-GAAP (with power credits); direct cost to mine per Bitcoin was $25,327.

• Power curtailment credits totaled $13.9 million in Q2 2024.

• Held 9,334 unencumbered Bitcoin, up 28% year-over-year, valued at $585 million.

Outlook and guidance

• Raised 2024 hash rate target to 36 EH/s and 2025 target to 56 EH/s, with a clear path to 75 EH/s and a long-term goal of 100 EH/s.

• Fully funded capital plan through 2025, with $694 million in capital expenditures planned and major expansions in Texas and Kentucky.

• Corsicana Facility expected to reach 1 GW capacity, with initial 400 MW phase adding 16 EH/s by end of 2024.

• Anticipates a strong second half for engineering, driven by data center demand and completion of legacy projects.

• Expects to produce more Bitcoin per day by year-end 2024 than in Q1 2024, despite halving headwinds.