Riot Platforms (RIOT) Q4 2024 earnings summary

Executive summary

• Achieved a 154% increase in self-mining hash rate, ending 2024 at 31.5 EH/s, outpacing the global network's 67% growth and energizing the Corsicana facility.

• Ended 2024 with 17,722 unencumbered Bitcoin, a 141% increase year-over-year, valued at up to $1.7 billion, after pausing all Bitcoin sales and acquiring 5,784 BTC with convertible note proceeds.

• Initiated a strategic pivot to leverage power assets for AI/HPC opportunities, while maintaining focus on Bitcoin mining.

• Completed key acquisitions, including Block Mining and E4A Solutions, expanding engineering capabilities and operational capacity.

• Closed inaugural convertible senior notes offering, raising up to $594 million, used to acquire additional Bitcoin and strengthen the balance sheet.

Financial highlights

• Full year 2024 revenue was $376.7 million, up 34% year-over-year from $280.7 million, with net income of $109.4 million ($0.40/share).

• Adjusted EBITDA for 2024 was $463.2 million, more than double the prior year.

• Bitcoin mining revenue totaled $321 million, a 70% increase over 2023.

• Power curtailment credits totaled $33.7 million, supporting low industry power costs at 3.4c/kWh.

• Working capital stood at $439.1 million, including $277.9 million in cash and $134.3 million in marketable equity securities.

Outlook and guidance

• Targeting a 22% increase in Bitcoin mining hash rate in 2025, aiming for 38.4 EH/s by year-end and maintaining ~4% global share.

• Anticipates $198 million in capital expenditures for 2025, with continued development at Corsicana and Kentucky sites, fully funded by current cash.

• Expects engineering business to approach $100 million in revenue in 2025, leveraging E4A acquisition synergies and a $75 million order backlog.

• Key focus areas for 2025 include AI/HPC feasibility, accretive BTC yield, low power costs, and operational efficiency.