Riot Platforms Q2 2025 Earnings Call - Pivoting to Data Centers to Monetize Megawatts While Mining Funds the Transition

Conference Operator: Good day and thank you for standing by. Welcome to Riot Platforms’ second quarter 2025 earnings conference call. Please note that all participants have been placed in a listen only mode until the question and answers session begins. Following the company’s presentation of these prepared remarks, please also be advised that today’s call is being recorded. I would now like to hand the conference call over to Phil McPherson, Vice President of Capital Markets and Investor Relations at Riot Platforms. Please go ahead.

Phil McPherson, Vice President of Capital Markets and Investor Relations, Riot Platforms: Thank you, operator. Good afternoon and welcome to Riot Platforms’ second quarter earnings conference call. My name is Phil McPherson, Vice President of Capital Markets and Investor Relations, and joining me on today’s call from Riot are Jason Les, CEO, Colin Yee, CFO, and Jason Chung, Executive Vice President and Head of Corporate Development and Strategy. On the Riot Investor Relations website, you can find our second quarter earnings press release and an accompanying earnings presentation, which are intended to supplement today’s prepared remarks and which include a discussion of certain non-GAAP items. Non-GAAP financial measures provided should not be considered as a substitute for or superior to the measures of financial performance prepared in accordance with GAAP and are included as additional clarifying items to aid investors in further understanding the Company’s second quarter performance. During today’s call, we will be making forward-looking statements regarding potential future events.

These statements are based on management’s current expectations and assumptions and are subject to risks and uncertainties. Actual results could materially differ due to factors discussed in today’s earnings press release, in comments and responses made during today’s.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Call and in the risk factors section of our Form 10-K and Forms 10-Q.

Phil McPherson, Vice President of Capital Markets and Investor Relations, Riot Platforms: Including for the three months ended June 30, 2025, which will be filed later today, as well as other filings with.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: The Securities and Exchange Commission.

Phil McPherson, Vice President of Capital Markets and Investor Relations, Riot Platforms: With that, I will turn the call over to Jason Les, CEO of Riot Platforms.

Jason Les, CEO, Riot Platforms: Thank you, Phil, and good afternoon, everyone. I’m excited to walk through the results of another strong quarter for Riot, before we dive into second quarter earnings.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: I’d like to share Riot’s strategic roadmap.

Jason Les, CEO, Riot Platforms: To provide some additional context to the development of our data center business and how we view all of our operations.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Working together in a complementary manner.

Jason Les, CEO, Riot Platforms: We are incredibly proud of the position that our company Riot Platforms is in today. Over the last seven years, we have.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Scaled incredibly both in terms of our.

Jason Les, CEO, Riot Platforms: Size and our capabilities, representing the culmination.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Of years of hard work, long-term planning, and coordination, all with a view to taking ownership of our future and placing our destiny in our own hands.

Jason Les, CEO, Riot Platforms: We have grown and evolved as a.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Company driven by our ability to develop world-class capabilities, including land and power procurement, Bitcoin mining at a globally significant.

Jason Les, CEO, Riot Platforms: Scale, power management and trading at scale, engineering, manufacturing and servicing critical electrical infrastructure, and significant access to global capital markets. Recently, we have added a new world-class capability with the hiring of Jonathan Gibbs, Riot’s.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Chief Data Center Officer and other highly capable professionals from the traditional data center industry, we find ourselves at the beginning of another exciting chapter in Riot’s story.

Jason Les, CEO, Riot Platforms: With this new capability, we are about.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: To undergo the next step of our evolution as a company with the ability to build and develop high-performance compute data centers.

Jason Les, CEO, Riot Platforms: We will transform Riot by establishing a.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Robust and scalable data center segment. Successful execution in this regard is Riot’s top priority, and we recognize the importance of clearly articulating our approach to investors and stakeholders.

Jason Les, CEO, Riot Platforms: To be clear, we are not pursuing a so-called pivot into AI HPC.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Initiatives with a view of doing a "quote unquote" deal.

Jason Les, CEO, Riot Platforms: Rather, we have added a new data center.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Center development capability, which we will apply.

Jason Les, CEO, Riot Platforms: To as much of our power portfolio.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: As possible, and which will transform our company in the years to come.

Jason Les, CEO, Riot Platforms: This mindset informs all of our decisions, enabling us to capitalize on this exciting opportunity.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Opportunity with discipline and foresight.

Jason Les, CEO, Riot Platforms: If I had to summarize our strategy into a simple elevator pitch, the pitch.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Riot is in the business of monetizing megawatts with a view.

Jason Les, CEO, Riot Platforms: To utilizing as much of our power.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Portfolio as possible and maximizing the value of our megawatts.

Jason Les, CEO, Riot Platforms: Over the long term, we will maximize.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: The value of our operational assets, specifically.

Jason Les, CEO, Riot Platforms: Optimizing our megawatts to use all available power. We have a great advantage with a.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Portfolio of ready-for-service power anchored by our operational flagship sites at Rockdale and Corsicana.

Jason Les, CEO, Riot Platforms: These assets are not conceptual, they are.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Active today thanks to prior investments in Bitcoin mining infrastructure.

Jason Les, CEO, Riot Platforms: This enables more certain execution on our.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Data center development initiatives compared to a standalone traditional developer.

Jason Les, CEO, Riot Platforms: Our Bitcoin mining capabilities have proven integral.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: To this strategy as they underpin our Ready for Service power portfolio.

Jason Les, CEO, Riot Platforms: By utilizing our mining capabilities, we have put ourselves in the fortunate position.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Find ourselves in today, and we can secure new powered sites by playing to our strengths, profitably managing risk, and simultaneously creating a sustainable cycle of growth.

Jason Les, CEO, Riot Platforms: Given the attractive economics and higher valuation.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Multiples associated with data center leases to high quality tenants, converting as much of our power portfolio to data centers remains our preferred end use for those assets.

Jason Les, CEO, Riot Platforms: The pace of transition from Bitcoin mining.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: To data centers will be influenced by customer demand trends, the availability of financing.

Jason Les, CEO, Riot Platforms: The general data center market. Our current efforts are laying a strong.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Foundation for a pipeline of future transactions.

Jason Les, CEO, Riot Platforms: We have many advantages that have put.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Us in an incredible position because we.

Jason Les, CEO, Riot Platforms: Offer a unique combination of significant scale of readily available power in high demand jurisdictions, a strong balance sheet underpinned by holding more than 19,000 Bitcoin and $330 million in cash, and with significant access to the capital markets, experienced hyperscale data.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: center leadership and development capability, scaled efficient.

Jason Les, CEO, Riot Platforms: Bitcoin mining revenues generating hundreds of millions.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Of dollars in revenues and cash flows annually, and battle-hardened and experienced management and operations teams.

Jason Les, CEO, Riot Platforms: With this framework, our mission is clear. Riot will maximize value across our entire.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Power portfolio with a view to ensuring no stranded capacity, progressively shift power capacity.

Jason Les, CEO, Riot Platforms: Towards data centers, strategically expand our power assets utilizing Bitcoin mining where advantageous.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Increase our shareholders’ exposure to value accreting assets.

Jason Les, CEO, Riot Platforms: We are strategically positioned at the convergence.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Of surging compute demand and Bitcoin growth, offering compelling potential for shareholder value creation.

Jason Les, CEO, Riot Platforms: Now turning to the second quarter, we continue to aggressively pursue further development of.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Our data center business buildout achieved a key milestone in our development plan. More specifically, we announced the hiring of Jonathan Gibbs as our Chief Data Center Officer.

Jason Les, CEO, Riot Platforms: As we searched for the right person.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: To take leadership of this primary initiative for Riot, Jonathan Gibbs’ name repeatedly came strongly recommended to us by a number of different industry parties.

Jason Les, CEO, Riot Platforms: The market for data center talent is incredibly competitive.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Professionals with Jonathan’s level of expertise are.

Jason Les, CEO, Riot Platforms: In very high demand. Jonathan’s decision to join Riot and lead.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Our data center platform is a testament.

Jason Les, CEO, Riot Platforms: To the unique opportunity set available to.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Riot and our ability to succeed.

Jason Les, CEO, Riot Platforms: We are incredibly excited to have someone.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Of Jonathan’s caliber on board to drive our efforts.

Jason Les, CEO, Riot Platforms: During the second quarter, we also continued to acquire additional land.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Around our Corsicana site and now have a total footprint of 858 acres.

Jason Les, CEO, Riot Platforms: Adding additional land ensures that we can.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Fully utilize the large-scale access to power that we have on site.

Jason Les, CEO, Riot Platforms: Leaving any power stranded, and therefore maximize.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: The value for Riot, which we believe is the premier data center development opportunity in the country.

Jason Les, CEO, Riot Platforms: We continue to see strong demand in the market, and we remain engaged in.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Ongoing discussions with interested parties.

Jason Les, CEO, Riot Platforms: With that said, in the second quarter, we also continued to make strong progress.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: In our Bitcoin mining business, where we have made significant operational efficiency improvements, that.

Jason Les, CEO, Riot Platforms: Now place us among the most efficient.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Operators in the industry, while also focusing on lower cost and maintaining a disciplined approach to capital allocation.

Jason Les, CEO, Riot Platforms: Riot has also maintained our strong balance.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Sheet, a long-standing key pillar of our business, ending the second quarter with over 19,000 Bitcoin and $330 million in cash on our balance sheet, representing $2.4 billion in liquidity.

Jason Les, CEO, Riot Platforms: Today we continue to sell our monthly.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Bitcoin production in order to finance our ongoing operations while raising additional funds.

Jason Les, CEO, Riot Platforms: A $200 million Bitcoin-collateralized financing facility with Coinbase, allowing us to reduce issuance.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Of stock through our ATM and fund our multiple growth opportunities, driving long-term shareholder value creation.

Jason Les, CEO, Riot Platforms: I am proud of what we have.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Been able to achieve in the second quarter.

Jason Les, CEO, Riot Platforms: These results and the financial and operational strength of the company will allow us to continue aggressively growing our data center business in a way that will maximize.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Long-term value for our shareholders.

Jason Les, CEO, Riot Platforms: I look forward to continuing to report on our progress throughout the rest of the year and beyond. With that, I would now like to.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Turn the call over to Colin Yee.

Jason Les, CEO, Riot Platforms: Officer of Riot Platforms, to present our.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Second quarter financial update.

Thank you, Jason. I am pleased to present Riot’s financial results for the second quarter of 2025. For ease of reference, we have highlighted key metrics on slide 8, which presents a snapshot of key financial and operating metrics for the second quarter. During the second quarter, Riot increased its self-mining hash rate from 33.7 exahash to 35.4 exahash, representing a 5% increase over the course of the quarter, while global hash rate rose by 9% in the same period. Riot produced 1,426 Bitcoin in the second quarter, a slight decrease as compared to the 1,530 Bitcoin produced in the prior quarter, driven by the global network hash rate growing at a greater pace than Riot’s deployed hash rate. Given our shift in strategic focus to developing our data center business.

Jason Chung, Executive Vice President of Corporate Development and Strategy, Riot Platforms: Year to.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Date for 2025, we have increased Bitcoin holdings per million fully diluted shares from 44.3 to 45.9, representing a Bitcoin yield of 3.7% through the period ended June 30, 2025. For the second quarter, Riot reported total revenue of $153 million as compared to $161.4 million for the previous quarter, a 5% decrease quarter over quarter primarily driven by lower Bitcoin production due to global hash rate increasing at a faster rate than our self-mining hash rate. Gross profit for the second quarter was $70.3 million as compared to gross profit of $73.6 million for the prior quarter. Gross margin in the second quarter equaled 46%, flat with the prior quarter. Net income for the second quarter was $219.5 million or $0.65 per share compared to a net loss of $296.4 million or $0.90 per share for the prior quarter.

This net income was primarily driven by mark-to-market adjustments due to the quarter-end appreciation in Bitcoin price and marketable securities totaling $477 million. As a reference, the Bitcoin price at the end of the first quarter was $82,534 while the price at the end of the second quarter was $107,174, resulting in mark-to-market upward adjustment of $470.8 million for the quarter. Net income for the quarter also included a $158.1 million loss on contract settlement as part of the Rhodium acquisition, depreciation and amortization expense of $83.2 million, non-cash stock-based compensation expense of $30.1 million, and was positively impacted by the release of $26 million in restricted cash associated with the post-closing dispute settlement with Northern Data. Non-GAAP adjusted EBITDA for the second quarter was $495.3 million as compared to non-GAAP adjusted EBITDA loss of $176.3 million for the prior quarter, which included $470.8 million in unrealized gain on Bitcoin.

Held cash SGA for the quarter was $45.8 million including one-time litigation expenses of $14.3 million and advisory fees of $2 million. Excluding these one-time expenses, Riot’s cash SGA expenses equal $29.5 million at the low end of our prior guidance of a run rate of $30 to $33 million per quarter for 2025. For the second quarter, Bitcoin mining revenue totaled $140.9 million in line with the prior quarter Bitcoin mining revenue of $142.9 million. Bitcoin mining gross margin for the quarter was 50%, an increase from 48% in the prior quarter. This margin expansion was driven by higher Bitcoin price, most notably Riot’s year over year hash rate utilization increased from 61% to 87%, demonstrating our strategic focus on improving operations across all of our sites even as we significantly scaled our operations and now positioning us among the most efficient operators in the industry.

Direct cost to mine excluding depreciation in the second quarter totaled $48,992 per Bitcoin, of which power costs amounted to $37,767 per Bitcoin or 77% of total direct cost per Bitcoin. Direct non-power costs, which include direct labor, miner insurance, miner and miner-related equipment, repairs, land lease, property taxes, network costs, and other utility expenses, totaled $11,225 or 23% per Bitcoin mined, increasing quarter over quarter when direct non-power costs accounted for 18% of total cost. This increase was almost entirely attributed to the one year anniversary of the completion of phase one construction at Corsicana and the resulting property tax bill assessment which totaled $3.8 million for the quarter, adding an additional $2,650 per Bitcoin in direct non-power costs. We anticipate this cost will remain constant at $1.7 million per quarter going forward in our direct non-power costs.

Despite this increase in our direct cost to mine, gross profit per Bitcoin mined for the quarter remained in line with the prior quarter. Given the higher average price per Bitcoin seen in the second quarter, I would now like to turn the call over to Jason Chung, EVP of Corporate Development and Strategy.

Jason Chung, Executive Vice President of Corporate Development and Strategy, Riot Platforms: Thank you, Colin. As we continue to develop our data center business, we believe that providing greater clarity on our Bitcoin mining business on a standalone basis is important information for the market. On page 11 of our second quarter earnings presentation, we have outlined the underlying run rate profitability of our Bitcoin mining business for the second quarter of 2025. The column outlined in the middle of the slide provides a step-by-step walkthrough of key profitability drivers for our Bitcoin mining business, ultimately culminating in run rate EBITDA for the quarter. Top line revenue drivers include the average global network hash rate, Riot’s average operating hash rate, average network hash price, and our total Bitcoin production for the quarter, which when taken together result in a reported second quarter Bitcoin mining revenue of $140.9 million.

As highlighted on the prior slide, total direct cost per Bitcoin for the second quarter was $48,992, and when applied to the 1,426 Bitcoin we produced during the

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Quarter equates to our reported Bitcoin mining.

Jason Chung, Executive Vice President of Corporate Development and Strategy, Riot Platforms: Gross profit of $71 million or 50% on a gross profit margin basis. In order to determine run rate cash SGA for the quarter, we exclude from total SGA the impact of non-cash charges which are primarily comprised of stock-based compensation, cash SGA related to our engineering business, and non-recurring expenses which are primarily litigation and advisory related. Run rate adjusted EBITDA for our Bitcoin mining business for the second quarter equaled $45.6 million, representing a 32% margin. These results are based on the average network hash price for the second quarter of $51 per petahash per day, while hash price today is currently closer to $60 per petahash per day.

Our Bitcoin mining business demonstrates strong leverage to changes in hash price and as an illustration, applying current hash price of approximately $60 per petahash per day to the second quarter results would have resulted in a 70% increase in our run rate adjusted EBITDA for the quarter. At the same time, we continue to focus on controlling and reducing costs. Non-cash charges which are primarily comprised of stock-based compensation are temporarily elevated at present, but will be meaningfully and dramatically reduced from mid next year onwards and we will provide more detailed guidance on the expected reduction in stock-based compensation in the next quarter. As Colin previously mentioned, litigation expenses represent the bulk of our non-recurring cash expenses for the quarter, constituting $14.3 million out of the total $16.3 million. While litigation expenses can be difficult to forecast, we continue to work to reduce these expenses as well.

For instance, our recent acquisition of Rhodium’s assets and settlement agreement during the quarter have eliminated litigation costs associated with this dispute. It is important to keep in mind that these results are specific to our second quarter and that historically the third quarter has been the period during which we have typically seen the greatest reduction in direct costs and therefore the greatest increase in profitability as that quarter is when we have typically been able to most fully employ our power strategy. I will now turn the call back over to Colin Yee to continue with the second quarter financial update. Thanks, Jason.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Before diving into the financial results of our engineering business for the quarter, it would be helpful to discuss the underlying significant strategic benefits that this business brings to Riot. Our engineering business provides critical long lead time items directly applicable to developing large-scale data center infrastructure. By directly controlling this business, we can ensure timely, cost-competitive availability of critical electrical components, representing a key competitive advantage in planning for ongoing development of both our Bitcoin mining and data center businesses at a time when other developers face supply constraints. Further, through our acquisition of E4A Solutions last year, the engineering business also brings added in-house expertise in commissioning, operating, and maintaining electrical infrastructure, allowing us to better maintain existing equipment, which reduces downtime and extends the life cycle of our equipment, which reduces additional CapEx spend.

Direct savings to Riot on CapEx spend associated with ESF Metron since its acquisition in December 2021 already totals $18.5 million to date, and we anticipate additional ongoing cost savings well into the future. Now let’s dive into the financials. During the quarter, the engineering business achieved a record in order bookings, taking our backlog to $118.7 million and setting the stage for a strong second half of 2025. During the quarter, engineering revenue totaled $10.6 million, a 14% decrease relative to the prior quarter revenue of $13.9 million. Total revenue excludes $5 million of intercompany purchases made in the second quarter by Riot for CapEx. With that, I would now like to turn the call back over to Jason.

Les, thank you, Colin.

Jason Les, CEO, Riot Platforms: As I discussed in my opening remarks, Riot’s strategy is to maximize the value.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Of the megawatts that we currently have readily available.

Jason Les, CEO, Riot Platforms: With the closing of the Rhodian asset.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Acquisition during the second quarter, we now have access to an additional 125 megawatts of power capacity at our Rockdale facility.

Jason Les, CEO, Riot Platforms: Following careful evaluation, we determined that the optimal use for this additional capacity in the immediate term is to upgrade it.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: To support enhanced Bitcoin mining use.

Jason Les, CEO, Riot Platforms: As such, we have recently entered into.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Purchase orders with MicroBT for new miners to be deployed at both Rockdale and Kentucky.

Jason Les, CEO, Riot Platforms: In total, this order consists of 10.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Exahash of MicroBT’s most efficient miner.

Jason Les, CEO, Riot Platforms: The M60s, with an efficiency rating of.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: 15.5 joules per terahash at current hash prices.

Jason Les, CEO, Riot Platforms: Coupled with Riot’s low cost of energy.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: We anticipate a relatively quick payoff period.

Jason Les, CEO, Riot Platforms: On this purchase given the attractive economics and higher valuation multiples associated with data center operations.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: center leases to high quality tenants.

Jason Les, CEO, Riot Platforms: Our long term goal for this additional.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Capacity is to transition it to data center use when appropriate. These capital expenditures are fully funded through year end 2025 with Riot’s current cash on hand.

Jason Les, CEO, Riot Platforms: As a result of this increase in 2025 CapEx, we are raising Riot’s fourth quarter 2025 hash rate forecast from 38.4 exahash.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: A hash to 40 exahash representing a year over year hash rate growth of 26%.

Jason Les, CEO, Riot Platforms: A portion of the new miner order.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Previously highlighted will be deployed during the.

Jason Les, CEO, Riot Platforms: First quarter of 2026, and as such, we are also providing an initial first.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Quarter 2026 hash rate forecast of 45 exahash.

Jason Les, CEO, Riot Platforms: This pace of hash rate growth is.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Anticipated to allow Riot to maintain our.

Jason Les, CEO, Riot Platforms: Approximate 4% share of the global Bitcoin.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Network into the first quarter of 2026 while we continue to focus on the development of our data center business.

Jason Les, CEO, Riot Platforms: In January 2025, Riot formally announced our pivot to utilize the available 600 megawatts of power.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Corsicana for data centers that serve high performance computing.

Jason Les, CEO, Riot Platforms: In just seven months, Riot has accomplished the following: Engage Altman Salon to perform.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: A comprehensive evaluation of the Corsicana Site 2 expanded our board to include key data center and infrastructure development expertise.

Jason Les, CEO, Riot Platforms: Engaged financial advisors to assist in our.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Go to market strategy, financing, and strategic partnership exploration for continued development of the.

Jason Les, CEO, Riot Platforms: 600 megawatt substation at Corsicana with 400.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Megawatts on track for the first quarter of 2026, and the second 200 megawatts expected to come online in the second half of 2026.

Jason Les, CEO, Riot Platforms: Building internal expertise, recruited and hired Jonathan.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Gibbs as Chief Data Center Officer along with other veteran data center talent.

Jason Les, CEO, Riot Platforms: Six progressing on the basis of design.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: For our data centers.

Jason Les, CEO, Riot Platforms: All of these steps are being taken.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: In a methodical, step-by-step manner in order to put us in the best position possible to secure a lease with a tenant and build a sustainable data center business. Further, when combined with our Bitcoin mining operations and resulting ability to monetize powered land, as well as our strong balance sheet, we are well positioned to expand our power portfolio further as attractive opportunities arise.

Jason Les, CEO, Riot Platforms: Building a world class data center team starts with the right leadership. In June, Jonathan Gibbs joined Riot as our Chief Data Center Officer, bringing more than 15 years of global experience leading end to.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: End data center development and operations.

Jason Les, CEO, Riot Platforms: Throughout his career, Jonathan has driven multiple aspects of leading edge data center development spanning capital planning, infrastructure delivery, operations, and.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Customer engagement across North America, Europe, and Asia.

Jason Les, CEO, Riot Platforms: Jonathan has led cross-functional teams responsible.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: For design, construction, procurement, critical operations, ESG.

Jason Les, CEO, Riot Platforms: EHS and sales engineering and has successfully led development of over 1 gigawatt of capacity, representing more than $17 billion in global investment. Most recently, he served as Executive Vice.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: President of Product Delivery at Prime Data Centers, overseeing the execution of hyperscale and enterprise data centers across the United States.

Jason Les, CEO, Riot Platforms: Having the right expertise and experienced leadership.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: In place is a critical step towards engaging potential data center tenants and negotiating leases from a position of credibility and strength.

Jason Les, CEO, Riot Platforms: As highlighted on the prior slide, building internal expertise represents a key milestone in the ongoing development of our data center.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Business and with Jonathan now in position leading the team, we continue to aggressively push forward in completing our basis of design and ultimately securing a lease in a manner that maximizes value for Riot’s shareholders.

Jason Les, CEO, Riot Platforms: We are excited to have Jonathan at Riot Platforms.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: The helm of our data center platform, and look forward to sharing more of his team’s progress and vision in the quarters ahead.

Jason Les, CEO, Riot Platforms: Altman Salon’s feasibility study identified.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: The footprint of our existing site is.

Jason Les, CEO, Riot Platforms: A potential complicating factor to fully utilizing the entire 1 gigawatt of power availability.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: At Corsicana for data center use in a lowest development cost way due to the different density requirements in comparison to Bitcoin mining.

Jason Les, CEO, Riot Platforms: We quickly moved to address this.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: In May of this year we announced that Riot acquired a 355-acre parcel, expanding our available footprint for additional development.

Jason Les, CEO, Riot Platforms: In July, Riot acquired a second 238.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Acre parcel adjacent to the previously announced.

Jason Les, CEO, Riot Platforms: 355 acre parcel, creating a 593 acre contiguous collection of land in close proximity.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: To our existing site.

Jason Les, CEO, Riot Platforms: Collectively, Riot now controls 858 acres.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Potential development area in Corsicana. Our goal is to assemble a portfolio that ensures we have maximum flexibility to.

Jason Les, CEO, Riot Platforms: Accommodate any design specifications and requirements of potential tenants. We are frequently asked about our time.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: To market strategy and the "window of opportunity" that we see.

Jason Les, CEO, Riot Platforms: Our observation of market dynamics suggests that power availability will remain the key constraining factor to the explosive demand for data center development that we are witnessing.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: That these dynamics will remain in place for many years to come.

Jason Les, CEO, Riot Platforms: On page 20 of the earnings presentation.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: There are two charts.

Jason Les, CEO, Riot Platforms: The chart on the left-hand side.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: This slide demonstrates from 2008 to.

Jason Les, CEO, Riot Platforms: 2023 U.S. on-grid energy demand growth.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Was nearly flat, resulting in minimal investments into grid infrastructure upgrades. Contrast that with projections of 2.2% compounded annual growth in demand for the next five years, representing a greater than 10x increase in annual demand relative to the prior 15-year period and demonstrating a significant and growing gap between this increased demand and more limited growth in supply.

Jason Les, CEO, Riot Platforms: Concurrent to this growing gap in demand.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: For power and relative to supply, timelines for pure power in key markets across the United States are significant, with analysts pointing to lead times in the Dallas and Austin markets where our Corsicana and Rockdale sites are located of 36 and 42 months, respectively.

Jason Les, CEO, Riot Platforms: Riot’s fully permitted and readily available power located in important, in-demand markets positions.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Us to be in the right place at the right time to capitalize on these market dynamics to the benefit of our shareholders.

Jason Les, CEO, Riot Platforms: In closing, we have many advantages.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Have put us in an incredible position.

Jason Les, CEO, Riot Platforms: Because we offer a unique combination of significant scale of readily available power capacity.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: In key high demand jurisdictions, experienced, credible hyperscale data center leadership and development capability.

Jason Les, CEO, Riot Platforms: Strong balance sheet underpinned by more than.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: 19,000 Bitcoin and $330 million in cash.

Jason Les, CEO, Riot Platforms: Significant access to capital markets, large.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Scale efficient Bitcoin mining operations generating hundreds of millions of dollars in revenues.

Jason Les, CEO, Riot Platforms: Cash flows and battle-hardened and experienced.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Management and operations teams.

Jason Les, CEO, Riot Platforms: With this framework, our mission is clear. Riot will maximize value across our entire.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Power portfolio with a view to ensuring full utilization of our available power capacity and pipeline, leaving no stranded capacity behind.

Jason Les, CEO, Riot Platforms: Progressively shift power capacity towards data centers, strategically expand our power assets utilizing Bitcoin mining where advantageous, and increase our shareholders.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Exposure to value accreting assets.

Jason Les, CEO, Riot Platforms: We are strategically positioned as at the.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Confluence of surging compute demand and Bitcoin growth offering compelling potential for shareholder value creation.

Jason Les, CEO, Riot Platforms: We will now open the call up.

Conference Operator: For questions, Operator, thank you, ladies and gentlemen. If you’d like to ask a question at this time, you will need to press star 11 on your touch-tone telephone and wait for your name to be announced. To withdraw your question, simply press star 11 again. Please stand by while we compile the queue. Now, first question coming from the lineup, Greg Lewis with BTIG. Your line is now open.

Yes, thank you and good afternoon and thank you for taking my questions. There’s definitely a lot to chew through on the HPC opportunity ahead for Riot, but I did want to ask about the decision. It was clearly a good quarter for generating Bitcoin, but from the action, we took that Bitcoin generation to really, we sold that to monetize. Could you talk a little bit about that decision to do that and how you’re thinking about the HODL strategy in the back half of the year or even longer term?

Jason Chung, Executive Vice President of Corporate Development and Strategy, Riot Platforms: Hey, thanks for the question, Greg. This is Jason Chung. I think this quarter is an interesting representation of how we think about our financing strategy.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: The different levers available to us.

Jason Chung, Executive Vice President of Corporate Development and Strategy, Riot Platforms: Looking at the past quarter, the two levers that we exercised most heavily were sales of our Bitcoin production and leaning into our Bitcoin stash to borrow and enter into the Coinbase facility for $200 million. The sale of Bitcoin production allows us to more than cover our operating costs and therefore frees up the additional capacity or minimizes our requirement to issue into.

Jason Les, CEO, Riot Platforms: The ATM really allows us to.

Jason Chung, Executive Vice President of Corporate Development and Strategy, Riot Platforms: Focus any financing raised through that very specifically towards growth opportunities which we believe are going to be value accretive to our shareholders. I think that’s kind of how we think about things for the quarter and probably a good reflection of how we currently think about things as well. As Bitcoin prices increase, that does give us additional room or comfort around our leverage levels and the ability to consider expanding the amount of.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Financing we draw upon there as well.

Jason Chung, Executive Vice President of Corporate Development and Strategy, Riot Platforms: I think as we continue to see how Bitcoin prices evolve, you’ll see us continue to take advantage of different market conditions as we think about what’s optimal from a capital perspective for the quarter.

Okay, super helpful. Just, you know, realizing you’re probably limited in what you can say, maybe we can talk a little bit about what we’re seeing in the market in terms of the available power transactions or availability to electricity. Signing for with HPC, you know, if you could kind of talk to.

You.

The pricing dynamics, you know, how things have been trending. I feel like more recently it was kind of in the $120 per megawatt range, is some of the things that we’ve been hearing. Kind of curious if that’s where you’re hearing the market is. Really, the question I have is, as we think about sizing, is there a premium that you’re seeing in terms of having a larger amount of power available? That is, if we’re looking at a couple hundred megawatt power deal versus, say, a half gig plus, is there any kind of premium for that larger power deal? Just in thinking about how a potential transaction could shake out?

Yeah.

Jason Les, CEO, Riot Platforms: Greg, this is Jason Les now. I think at a high level we’re seeing very robust demand in the data center market. Our view continues to be that what exists out there in terms of power and infrastructure is really not close to sufficient to meet what’s forecasted demand. Hyperscalers continuing to announce higher levels of CapEx budgets. They have serious demands for more data center capacity that really cannot be satisfied by new power that’s expected to be available. What we see is the implications of the AI arms race being very clear here. There’s a trend for more compute demand that’s very clear. We believe demand is going to.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Continue to be robust. We are building a business here, building a platform to be able to serve it.

Jason Les, CEO, Riot Platforms: As far as monthly rates go, I think there’s a lot of different components that go into what an ultimate lease might be. It’s important to look at a deal like this as a sum of.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: All of its parts.

Jason Les, CEO, Riot Platforms: Maybe instead of just a single metric.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: You’ll see a range of rental rates.

Jason Les, CEO, Riot Platforms: Those will have somewhat of a.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Correlation to the type of tenant that you’re getting.

Jason Les, CEO, Riot Platforms: There’s a bit of credit risk often.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Built into what those monthly rates are, and you’ll see term and other components of these agreements.

Jason Les, CEO, Riot Platforms: I think it’s important to look at these in all of the parts that comprise them and not necessarily just.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: What that monthly rate will be.

Jason Les, CEO, Riot Platforms: It can be a range, and other components could enhance that deal or make that deal worse off from the perspective of the lessor. I think the last part of.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Your question was is there a premium for large scale power?

Jason Les, CEO, Riot Platforms: I don’t know if I can comment.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Right now, if there’s a premium for that power, what I can say is that there’s a premium of interest for large scales of power. For tenants, everyone is massively scaling.

Jason Les, CEO, Riot Platforms: Hyperscalers are looking to take down gigawatts and beyond now, as everyone else increases their demands.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: For compute, we’re now seeing neo-clouds taking.

Jason Les, CEO, Riot Platforms: Down capacity at levels that hyperscalers once.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Did, and now enterprise tenants taking down capacity at those significant levels as well.

Jason Les, CEO, Riot Platforms: What any long term growth oriented tenant is going to be thinking about.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Is their pipeline for expanding?

Jason Les, CEO, Riot Platforms: Instead of having to solve a problem.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: For capacity over and over and over again with different providers.

Jason Les, CEO, Riot Platforms: What we see is customers who are.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Interested in.

Jason Les, CEO, Riot Platforms: Capacity available beyond just what.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Their initial lease might be, so when you talk about a premium for capacity, that’s how we think about it.

Jason Les, CEO, Riot Platforms: There’s a premium that is in essence garnering customer interest because they see an ability to expand beyond just.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: What an additional phase of a development or lease might be.

Jason Les, CEO, Riot Platforms: We have found that is very helpful for having productive discussions. Okay, hey, super helpful.

Thank you for the time, gentlemen.

Conference Operator: Thank you. Our next question coming from the line of Nick Giles with B. Riley Securities. The line is now open.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Thank you, operator. Good afternoon, everyone.

You know, I think it’s become clear that Riot’s not going to rush to.

Get a deal done.

I want to commend you for your measured approach. I think in recent months, forming basis of design has been at the core of Riot’s efforts towards the data center side. I was wondering if you could provide any detail on what aspects of that document are clearly defined versus ones you may still be working on. I think factors that come to mind are cooling resources, redundancy, security, raw layout. Any color that you can add there would be great. Thank you.

Jason Les, CEO, Riot Platforms: Yes. First off, bringing an experienced data.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Center Executive like Jonathan Gibbs on board.

Jason Les, CEO, Riot Platforms: Alongside other talent that’s been recruited.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Significant experience in data center development has.

Jason Les, CEO, Riot Platforms: Aided us considerably in building the spaces of design.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Of course, it is this team’s, this data center team’s project and objective to accomplish here. This basis of design is very foundational to being able to go to market. What we’re putting together here is the technical strategy, design elements that we can.

Jason Les, CEO, Riot Platforms: Take and then have something concrete to be able to discuss with potential customers, with potential tenants to ultimately arrive.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: At a more customized design and then a lease. We see this as, you know.

Jason Les, CEO, Riot Platforms: One of multiple milestones, but a very.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Key milestone in progressing towards getting a lease here.

Jason Les, CEO, Riot Platforms: We have been working at this quite a bit. Jonathan and his team has, rather, and there’s been significant progress made already. We expect that we will be able.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: To complete this basis of design by the end of this quarter.

Jason Les, CEO, Riot Platforms: End of the third quarter, that is, and be moving on to next steps in our data center strategy.

Jason, thanks for all that color. That reminds me, I want to congratulate Jonathan on his appointment.

Jason Chung, Executive Vice President of Corporate Development and Strategy, Riot Platforms: My second question was, you know, obviously.

Long lead times are a key determining factor in development timelines. Have you submitted any RFPs to contractors? I mean, how much is the tariff landscape ultimately playing into the timing of that?

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Thank you.

Jason Les, CEO, Riot Platforms: For some of the critical infrastructure that’s needed to build this capacity, we have already secured, I’m referring to the 600 megawatt substation that’s being built that’s expanding the site to 1 gigawatt. We have already procured that equipment. That equipment is already arriving, and that is going to take our Corsicana site to 1 gigawatt in 2026.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: We are very well positioned on that critical equipment there.

Jason Les, CEO, Riot Platforms: As far as other equipment goes, we are pretty confident in the steps that.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: We’re taking to prepare for that.

Jason Les, CEO, Riot Platforms: We are looking at long lead times for other equipment, but the timelines for.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: These are not surprising to us. That’s kind of expected.

Jason Les, CEO, Riot Platforms: The process of procuring these long.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Items are already underway.

Jason Les, CEO, Riot Platforms: With Jonathan and his team on.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Board, we feel like we’re approaching this in a very strategic way.

Jason Les, CEO, Riot Platforms: Ultimately, we don’t believe that the.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Lead times for equipment is going to impact our ability to secure a lease. Guys, thanks for the update.

Keep up the good work.

Conference Operator: Thank you. Our next question coming from the line of Darren Aftahi with ROTH Capital, your line is now open.

Hey, guys, good afternoon.

Jason Les, CEO, Riot Platforms: Thanks for taking my questions. Just following up on the master site design timeframe being completed by the end of this quarter. Can you speak to the potential tenants?

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: That you’re engaged with?

Jason Les, CEO, Riot Platforms: How critical is that master site design in terms of their willingness to kind of continue negotiating? Said another way, is that something.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: That will accelerate negotiations for you, or are there folks that have already kind.

Jason Les, CEO, Riot Platforms: Of parallel diligencing things they need while waiting for that master site design? My second question on Rockdale, I know you’re upgrading some rigs there, but can you just give us some general long term thoughts on what that campus potentially could be used for other than Bitcoin mining, and kind of where your head’s at.

Is that you have too much to.

Bite off now with Corsicana and it’s.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Kind of back burner.

Jason Les, CEO, Riot Platforms: You could do these things simultaneously and potentially market all your power as one campus.

Jason Chung, Executive Vice President of Corporate Development and Strategy, Riot Platforms: Thanks.

Jason Les, CEO, Riot Platforms: Yeah, Darren, the first part of your question. One thing I want to make clear is we are making a basis.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Of design that we believe can serve a wider range of customers.

Jason Les, CEO, Riot Platforms: It can serve hyperscale customers, it can.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Serve enterprise customers or neo-cloud customers.

Jason Les, CEO, Riot Platforms: What we want to do is maximize our flexibility.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: I think that’s a theme you’ve heard us talk about on our earnings calls a couple times now.

Jason Les, CEO, Riot Platforms: Taking different actions, making moves in order.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: To maximize the flexibility of our site.

Jason Les, CEO, Riot Platforms: Of our data center and secure the.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Best possible deal here.

Jason Les, CEO, Riot Platforms: If you’re talking about engaging with.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Serious counterparties, this is the type of information that they come to the table with in order to advance discussions substantially.

Jason Les, CEO, Riot Platforms: We view the building.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Out of this team here, especially led by Jonathan Gibbs and his onboarding, is very critical and a very important step we’ve made to building up this platform.

Jason Les, CEO, Riot Platforms: I can’t comment on ongoing discussions. I would say that all types of customers are different and maybe approach conversations in different ways.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Different milestone in order to have serious discussions here.

Jason Les, CEO, Riot Platforms: We look forward to sharing more.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: About this with the market as it is.

Jason Les, CEO, Riot Platforms: Completed and being transparent and sharing our.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Milestones and our roadmap to building out our platform here and ultimately securing a lease.

Jason Les, CEO, Riot Platforms: With respect to long term, I’m sorry.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: With respect to Rockdale, our primary focus is scaling our data center business.

Jason Les, CEO, Riot Platforms: Maximizing the value of all of our power assets because of that, because of the economics.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: That you can get with data center leases and how the market values that.

Jason Les, CEO, Riot Platforms: Data centers are the ultimate ideal use.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: For us, for all of our power capacity.

Jason Les, CEO, Riot Platforms: What’s great about Riot is we have a lot of power capacity to work with, megawatts alone, which is our available capacity at Corsicana. That represents a very substantial data center.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Campus in its own.

Jason Les, CEO, Riot Platforms: At the same time, we are open to finding deals at Rockdale as well. I think what we’re just doing right now is prioritizing what we see as the, and as we get our data center.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Platform off the ground, and we continue to make more progress.

Jason Les, CEO, Riot Platforms: That positions all of our power assets.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: In the pipeline for growth of the data center platform ultimately, you can think of our strategy.

Jason Les, CEO, Riot Platforms: As using Bitcoin mining at sites like.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Rockdale to monetize that power to ensure that no power is stranded and wasted.

Jason Les, CEO, Riot Platforms: Turning that into meaningful cash flows for the company and then ultimately looking to.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Transition that capacity to data center leases.

Jason Les, CEO, Riot Platforms: When the time is right.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Thanks, Jason.

Conference Operator: Thank you. Our next question coming from the line of Brett Noblack with Clint Office, Gerald Johannes Nelson.

Hey guys, thanks for taking my question. Maybe an update on kind of your Bitcoin mining outlook and you guys kind of raised guidance for the end of this year and the first quarter as well. Network hash has kind of been stubbornly continuing to go up, maybe high level. Where do you see network hash going? Is there a level where you think maybe it kind of plateaus a bit? I know you talked about being 4% share. Is that kind of like a goal that you guys want to maintain for the long term or how should we think about that?

Jason Les, CEO, Riot Platforms: I think that the 4% share is not a mandate that we have. That’s something that we see ourselves being in just based on the growth that we’ve outlined and kind of a near term estimate of global network hash rate in the next six to 12 months. By no means are we intending.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: To always maintain a certain %.

Jason Les, CEO, Riot Platforms: Going back to the first part.

Phil McPherson, Vice President of Capital Markets and Investor Relations, Riot Platforms: Of your question, I think Bitcoin miners.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Will face the same types of scaling challenges that data centers are.

Jason Les, CEO, Riot Platforms: There’s very limited amounts of power, and from what I think we’re seeing and we’re excited about is data center customers.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Are paying a lot more for that.

Jason Les, CEO, Riot Platforms: Than Bitcoin miners ultimately would, while Bitcoin miners have other options.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: For power that data centers don’t, I think they will also be constrained in.

Jason Les, CEO, Riot Platforms: How they scale, which has the potential.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: To have a positive impact on hash price in the future.

Jason Les, CEO, Riot Platforms: At Riot, what we’re focusing on is maximizing the value across our power portfolio, trying to maximize the value of all of our megawatts, not train in any capacity. What we shared with the growth that we have going on in Kentucky and the hash rate growth that we have at Rockdale, those are moves in.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: accordance with that strategy.

Jason Les, CEO, Riot Platforms: I think represent measured growth of.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Our Bitcoin mining segment.

Jason Les, CEO, Riot Platforms: We’re looking at approximately 26% year over.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Year growth from 2024 to 2025.

Jason Les, CEO, Riot Platforms: Approximately 10% growth from 2025 to 2026.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Also.

Jason Les, CEO, Riot Platforms: That’s helpful.

Maybe just on the Corsicana site, I think a lot of the conversations we’ve had kind of suggest that is maybe one of, if not the best potential AI data center sites out there. Are you guys getting kind of like similar feedback when you guys are looking at potential customers or kind of what to do with maybe the remaining 600 or full gigawatt out there?

What we’re focused on with launching this data center platform is building a strong foundation. We want to get off on the right foot here. Building that strong foundation means getting the right deal of what we can build the pipeline on top of from the start. That doesn’t mean that we need all of that 600 megawatts or sign a lease for all of that 600.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Megawatts to build that first foundation.

Jason Les, CEO, Riot Platforms: The first step to build that strong foundation. We are looking at this capacity and building it out as a phased approach.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: We see.

Jason Les, CEO, Riot Platforms: Building this out in different segments, and we’ll be talking about that.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: More in the future.

Jason Les, CEO, Riot Platforms: The fact that the site has so much capacity means that ultimately there may be one tenant that wants all of that.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: I discussed an earlier question. The fact that there’s so much growth.

Jason Les, CEO, Riot Platforms: One site is, we believe, very interesting to lots of customers out there who have very robust demand forecast. It is to be determined how this is all segmented out. We are approaching the market with.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: A design that we believe can serve.

Jason Les, CEO, Riot Platforms: A wide range of the market.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Hyperscale customers, enterprise customers, and neo-clouds.

Jason Les, CEO, Riot Platforms: What’s important to us is getting.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: This is off on a solid foundation to start.

Jason Les, CEO, Riot Platforms: Ultimately, like I stated again.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: There’s lots of room to grow here, and the potential to do a larger deal from there.

Awesome.

Thank you. Really appreciate it.

Conference Operator: Thank you. Our next question coming from the line of Paul Golding with Macquarie. Your line is now open.

Thanks so much. I wanted to ask about, of course, you can drill down to some of the infrastructure components. I noticed in the slide on 2025 CapEx that there’s a waterline project expected to be completed in Q2 2026, and just overall, looking at the substation development line item for Corsicana, I was wondering if you could expand on any of the infrastructure components for Corsicana that are maybe factoring into the conversation.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Still pending.

With potential tenant counterparties, as opposed to these deals having been signed already. Please help us understand the extent to which water access has already been secured, given the water retention pond that you have and the importance of that for HPC and AI liquid cooling.

Jason Chung, Executive Vice President of Corporate Development and Strategy, Riot Platforms: Thank you.

Jason Les, CEO, Riot Platforms: Starting on water, Paul, as you.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Noted, we have a significant size retention.

Jason Les, CEO, Riot Platforms: Pond that allows us to use a lot of the water that’s just naturally generated on site. It’s Texas, but still gets a lot of rain. We have secured the plans and the.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Approvals to build up the waterline.

Jason Les, CEO, Riot Platforms: That will ultimately be a part of giving us maximum flexibility to serve customer demands. What we’re seeing on the data center technology side is cooling technologies becoming more.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: becomes more water efficient as time goes.

Jason Les, CEO, Riot Platforms: In order to be flexible, we didn’t want to bank on that.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: We’re securing enough water that we believe would be ample for a full.

Jason Les, CEO, Riot Platforms: 1 GW development if someone needed that.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Amount of water in order to achieve the cooling strategies that they have or that they require. As far as the infrastructure for Corsicana.

Jason Les, CEO, Riot Platforms: I think we are in a great position and probably have a considerable leg up on what other data center developers might be at at this stage. We’ve already made the decision years ago.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Really, to be procuring this equipment, it’s already coming in now.

Jason Les, CEO, Riot Platforms: That significantly, I think, de-risked the amount, I’m sorry, de-risked the timeline to getting that power online. Also combined with the fact that we.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: have this approved already. We have FDA for this already.

Jason Les, CEO, Riot Platforms: It is all baked in and ready to go. I believe that puts us in.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: A great position when we have conversations with tenants because this power is not theoretical. This power is impending. Certain steps happening.

Jason Les, CEO, Riot Platforms: This power is coming in the next.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Six months and scaling up from there.

Great, thanks. Maybe a follow on to that. We talked on the call about price potential pricing in the marketplace and premiums or premium for demand. You’ve spoken on the call about data center customer requirements and that’s factoring into this build concept. As you have these conversations, just wanted to verify, is the plan still or is what you’re pursuing still the option to construct the facility and the power infrastructure for these tenants in a yield on cost or build-to-suit scenario? Are you getting inbounds or are you considering inbounds where someone else is building it and leasing the power and the infrastructure?

Thank you.

Jason Les, CEO, Riot Platforms: Our philosophy at Riot has been to maximize the value of our assets.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: We believe that build-to-suit model is going to be the best.

Jason Les, CEO, Riot Platforms: Way to maximize the value of our portfolio of assets, especially at Corsicana. That being said, we do not intend on building up the site beyond an.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Initial stage without a lease.

Jason Les, CEO, Riot Platforms: We’re not looking to build out a site on spec. We believe that by finalizing the design,

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Here, understanding what that is with customers.

Jason Les, CEO, Riot Platforms: Being able to take initial steps to get things off the ground, which we already have done with building.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Up a substation in the water, these would be foundational steps. Any data center, we are willing to invest in order to get things moving off the ground and getting to the point of getting the lease.

Jason Les, CEO, Riot Platforms: We are not looking to build.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: To suit a site on spec and take on all that risk without having.

A lease in hand.

Great.

Thanks, Jason.

Conference Operator: Thank you. Our next question coming from the line of Reggie Smith with JPMorgan. Your line is now open.

Hey Jason, congrats on a quarter. I guess I’d like to follow up on the last question, and I appreciate you guys wanting to actually build-to-suit, but I guess my question is.

Jason Chung, Executive Vice President of Corporate Development and Strategy, Riot Platforms: If.

If there’s more demand today for people just looking to buy power outright, if that were your strategy, do you think this plot or your capacity would have been sold now, if that makes sense? I’m trying to figure out if the hang up or the delay in the deal being done is the fact that there may be some haggling over whether a miner just sells power outright versus a build-to-suit type situation. I have one follow up question. Thank you.

Jason Les, CEO, Riot Platforms: Yeah, Reggie, we believe what we have is incredibly valuable.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: I think all the data that we’re seeing in the market on data center leasing validates that belief.

Jason Les, CEO, Riot Platforms: It’s important to us to maximize.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: The value of that.

Jason Les, CEO, Riot Platforms: If you’re talking about doing something like leasing powered land, yes, there is a ton of demand for leased powered land, but the value that you can expect to extract from that is going to be, I think, pretty significantly mismatched with what I think investors are expecting from.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: This type of data center opportunity.

Jason Les, CEO, Riot Platforms: With the assets that we have, with the balance sheet that we have.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Now with the team that we have.

Jason Les, CEO, Riot Platforms: We are in a great position to.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Build a data center platform and be able to pursue the value maximizing approach that we see with this build-to-suit model.

Jason Les, CEO, Riot Platforms: We are open to anything that will maximize the value.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: We’re not closed off to any type of discussion. This is the avenue that we see as the best pursuit going forward, and that’s why we’re approaching things in this manner that makes sense.

If I could ask one more question, one of the points that we’ve talked about that we thought has distinguished you guys from other operators is that you’re located so close to Dallas and Austin. As you kind of assess or appraise your assets, how important is that distance from one of those cities?

In.

Determining the attractiveness of partnering with Riot versus someone else? Is there still a premium for location? I guess is what I’m asking you.

Jason Les, CEO, Riot Platforms: Yeah, Reggie, the location is very important. Dallas is a Tier 1 data center market.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: The most in demand data center markets in the country.

Jason Les, CEO, Riot Platforms: That’s why I think Corsicana is so valuable. You have the great connections, low latency, and ability to get people and talent.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: To that site relatively easily as opposed to more remote locations.

Jason Les, CEO, Riot Platforms: For that reason, we think Rockdale is.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Also an attractive site.

Jason Les, CEO, Riot Platforms: Now Austin, San Antonio, those aren’t tier one markets yet.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: With the investments that we see in data center CapEx with the revenue forecast for AI software and the margins.

Jason Les, CEO, Riot Platforms: That AI software service providers are forecasting and able to get, we think that.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Will change over time.

Jason Les, CEO, Riot Platforms: By having these two sites both.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Near one Corsicana, near a major market today, and Rockdale near what I would say is an emerging up and.

Jason Les, CEO, Riot Platforms: Coming market, I think makes those sites very attractive and allows them, because of those elements, allows them to command perhaps better economics than other projects out there.

That’s what I assume.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Glad to hear that.

Thank you.

Conference Operator: Thank you. Our next question coming from the lineup. Mike Grondahl with Northland Capital. Your line is now open.

Hey, thanks guys. Congratulations on hiring Jonathan Gibbs. What would you say his top two priorities are this summer and fall?

Jason Les, CEO, Riot Platforms: Our number one priority is building this data center platform, bar none. I would break that down into two priorities on accomplishing that. One is building up the team. Jonathan is bringing the critical leadership to making that happen. We’ve added other individuals that are veterans.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Of data center design and development, we are bringing more talent on as we speak.

Jason Les, CEO, Riot Platforms: This is important because we want to.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Build up our expertise. We want to build up our platform.

Jason Les, CEO, Riot Platforms: It looks and feels and acts.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Like a way a hyperscale and enterprise and neo-cloud customers expect.

Jason Les, CEO, Riot Platforms: That’s the number one priority. I guess second priority in parallel. I’m not ranking one over the other.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Is completing this basis of design. Of course, Corsicana, this will allow us.

Jason Les, CEO, Riot Platforms: To have more substantive discussions with potential.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Tenants allow us to advance the design further.

Jason Les, CEO, Riot Platforms: Working different customization necessary, and really gets the critical parts of negotiations happening.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Two priorities.

Jason Les, CEO, Riot Platforms: Number one priority, building the data center.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Platform two are building the team and building the design.

Got it.

Hey.

Thank you.

Conference Operator: Thank you. Our next question coming from Delina, Stephen Glencola with JonesTrading. Your line is now open.

Jason Les, CEO, Riot Platforms: Hi, Jason.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Colin and Jason, thanks for the question.

Jason Les, CEO, Riot Platforms: How will the new requirements in Texas Senate Bill 6, such as grid.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Upgrade, cost sharing, mandatory backup generation, disclosure.

Jason Les, CEO, Riot Platforms: Containment obligations, so forth, affect the cost.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Structure and operations of your mining and data center.

Your HPC activities at both Corsicana and Rockdale?

Jason Les, CEO, Riot Platforms: Thank you. First, important to note is that.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: For both of these sites, we have FDAs already in place. We do not expect to need.

Jason Les, CEO, Riot Platforms: To renegotiate those FDAs in any way.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: As a result of this change or as a result of this new legislation.

Jason Les, CEO, Riot Platforms: This legislation launches a lot of exploratory.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Work and information gathering.

Jason Les, CEO, Riot Platforms: That’s something that Riot, our very capable public policy team, our power team, and

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Our industry partners are all very involved in. One of the parts of SB6 is looking at the 4ct program. That’s something that Riot participates in.

Jason Les, CEO, Riot Platforms: order to reduce our transmission charges, that program may see changes as the working groups from this legislation progress.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: We don’t, we hope, and we’re working to ensure this doesn’t have too much.

Jason Les, CEO, Riot Platforms: Of an impact on our transmission charges. Ultimately, there’s lots of different ideas of how changes to that program could take place.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: It is really too early, I think, to speculate on that. As far as the other requirements go.

Jason Les, CEO, Riot Platforms: I think that is probably going to.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Impact new FEAs and new interconnection agreements more than it is us.

Jason Les, CEO, Riot Platforms: It is something we’re staying very close to.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: To and making sure that we’re good stewards of the grid, we’re good industry.

Jason Les, CEO, Riot Platforms: Partners, and we’re doing what we can.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: To support the grid and give them the data and the reliability that they need.

Jason Les, CEO, Riot Platforms: All right, thank you.

Conference Operator: Thank you. I’m showing no further questions at this time. I will now turn the call back over to Phil McPherson for any closing remarks.

Phil McPherson, Vice President of Capital Markets and Investor Relations, Riot Platforms: Thank you, operator. Thank you everyone for joining us on our second quarter call. We look forward to updating you further progress on our business on the third.

Jason Les/Colin Yee, CEO/CFO, Riot Platforms: Quarter call in October.

Conference Operator: This concludes the conference. Thank you for your participation and you may now disconnect.