Riot Platforms reiterated that its strategy has evolved to “maximize the value of our megawatts,” rather than just mining Bitcoin, despite posting record revenues in the third quarter on the back of increased Bitcoin production.
During a conference call following the release of the company’s third-quarter results on Wednesday, Josh Kane, vice president of investor relations at Riot Platform, noted that while the company is happy with its work on Bitcoin mining initiatives, its broader focus is now on “megawatt monetization.”
“As our strategy has evolved, so has our approach to the Bitcoin mining business. We no longer see Bitcoin mining operations as an end goal, but instead as a means to an end, and that end is maximizing the value of our megawatts,” he added, adding:
“Over time, this means moving megawatts in our energy portfolio to develop data centers. Service-ready power in the right locations is becoming increasingly scarce and valuable, which in turn forms the basis for the tremendous value creation opportunity that lies ahead.”
According to the company’s third-quarter report, Riot to publish Record quarterly revenue of $180.2 million, up 112.5% from Q3 2024 and net income of $104.5 million compared to a net loss of $154.4 million a year earlier.
The company also saw a 27% increase in Bitcoin (BTC) mining production year-over-year, mining 1,406 BTC in the third quarter and bringing its total balance to 19,287 BTC, worth more than $2.1 billion at current prices.
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It is worth noting that 90% of Riot’s revenue in the third quarter came from Bitcoin mining projects, indicating that the company still relies heavily on digital gold.
Commenting on this, Kane said Riot will continue to maximize Bitcoin mining potential but will use the funds to support its data center-focused plans.
“We will continue to exploit the opportunity provided by Bitcoin mining to secure energy and leverage strong cash flow that we will leverage to support the ongoing transformation of our overall business,” he said.
Will Bitcoin mining just be a side hustle?
Riot began laying the groundwork for its diversification strategy at the beginning of this year, after the company temporarily halted construction of any further Bitcoin mining projects in Corsicana, instead seeking new opportunities to create high-performance AI-oriented infrastructure.
Along with the financial results, the company announced the “commencement of fundamental and structural development” of the first two buildings at its Corsicana Data campus in Texas, which will represent “a total of 112 megawatts of critical IT data center capacity.”
Going forward, Riot executives have made clear their intentions to fill every spare piece of land on Corsicana, eventually turning it into a “1-gigawatt data center headquarters.”
“It all falls under the lens of maximizing the value of all the megawatts we have, and trying not to leave any capacity untapped as we aggressively build out the data center business. Ultimately, we aim for the entire site to be a one-gigawatt data center campus,” noted CEO Jason Lees.
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