“Riot achieved a number of important milestones and records during the first quarter of 2023,” said
“Riot’s vertically integrated strategy has once again positioned us during this quarter as an industry leader in low-cost, large-scale Bitcoin mining, and I continue to be excited to work with our team to achieve Riot’s vision of becoming the leading Bitcoin-driven infrastructure platform.”
First Quarter 2023 Financial and Operational Highlights
Key financial and operational highlights for the first quarter include:
- Total revenue of
$73.2 million for the three-month period endedMarch 31, 2023 , as compared to$79.8 million for the same three-month period in 2022. The decrease was primarily driven by lower Bitcoin prices, which averaged$22,704 for the three-month period endedMarch 31, 2023 , a decrease of 44% as compared to$41,241 for the three-month period endedMarch 31, 2022 . The decrease in Bitcoin price was offset by a 51% increase in Bitcoin mined during the same three-month period in 2022. - Produced 2,115 Bitcoin during the three-month period ended
March 31, 2023 , as compared to 1,405 Bitcoin during the same three-month period in 2022. Higher Bitcoin production was driven by a significant increase in miners deployed year over year. - The average cost to mine Bitcoin for the three-month period ended
March 31, 2023 was$10,354 per Bitcoin, as compared to$13,590 per Bitcoin for the same three-month period of 2022. - Earned
$3.1 million in power curtailment credits for the three-month period endedMarch 31, 2023 , as compared to$2.6 million in power curtailment credits earned for the same three-month period in 2022. - Mining revenue of
$48.0 million for the three-month period endedMarch 31, 2023 , as compared to$57.9 million for the same three-month period in 2022, primarily driven by lower Bitcoin prices and increased curtailment driven by our power strategy to reduce overall power costs. - Data center hosting revenue of
$9.0 million for the three-month period endedMarch 31, 2023 , as compared to$9.7 million for the same three-month period in 2022, driven by reduced customer billings as a result of lower revenue share from customers due to lower Bitcoin prices. - Engineering revenue of
$16.1 million for the three-month period endedMarch 31, 2023 , as compared to$12.1 million for the same three-month period in 2022, primarily driven by increased demand from third-party data center and engineering customers. - Maintained industry-leading financial position, with
$253.6 million in working capital, including$158.3 million in cash on hand (and excluding an additional$29.5 million in restricted cash), and$202.0 million Bitcoin (unaudited), all of which were produced by the Company’s self-mining operations, as ofMarch 31, 2023 .
First Quarter 2023 Financial Results
Total revenue for the three-months ended
Bitcoin Mining revenue in excess of mining cost of revenues for the three-month period ended
Data Center Hosting cost in excess of revenues for the three-month period ended
Engineering revenue in excess of engineering cost of revenue for the year three-month period ended
Power curtailment credits received, based on ancillary services fees earned from our participation in ERCOT’s demand response programs and our ability under long-term power agreements to sell power back to the
If power credits were directly allocated between Bitcoin Mining cost of revenues and Data Center Hosting cost of revenues based on proportional power consumption, Bitcoin Mining cost of revenues would have decreased by
Selling, general and administrative expenses during the three-month period ended
Net loss for the three-month period ended
Non-GAAP Adjusted EBITDA for the three-month period ended
First Quarter 2023 and Recent Operational Highlights
- As of
April 30, 2023 , the Company had a deployed fleet of 94,176 miners and achieved an all-time record hash rate capacity of 10.5 EH/s (which excludes 17,040 miners currently offline inBuilding G ). - Ended the month of April with 800 miners staged for deployment. Upon deployment of the staged miners, the Company expects to have a total of 94,976 miners deployed with a hash rate capacity of approximately 10.6 EH/s.
- Continued the ongoing 400 megawatt (“MW”) expansion at our Rockdale Facility, which is expected to be fully completed in Q2 2023. In
Building D , the installation of water-cooling pads has been completed, while inBuilding E , the evaporative water wall system framing has been installed.
Hash Rate Growth
As previously disclosed, severe winter storms in
Building F has since been brought back online and based on the ongoing repair to
ATM Offering
In
About
Riot’s (NASDAQ: RIOT) vision is to be the world’s leading Bitcoin-driven infrastructure platform.
Our mission is to positively impact the sectors, networks and communities that we touch. We believe that the combination of an innovative spirit and strong community partnership allows the Company to achieve best-in-class execution and create successful outcomes.
Riot is a Bitcoin mining and digital infrastructure company focused on a vertically integrated strategy. The Company has Bitcoin mining data center operations in central
For more information, visit www.riotplatforms.com.
Safe Harbor
Statements in this press release that are not historical facts are forward-looking statements that reflect management’s current expectations, assumptions, and estimates of future performance and economic conditions. Such statements rely on the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Words such as “anticipates,” “believes,” “plans,” “expects,” “intends,” “will,” “potential,” “hope,” and similar expressions are intended to identify forward-looking statements. These forward-looking statements may include, but are not limited to, statements about the benefits of acquisitions, including financial and operating results, and the Company’s plans, objectives, expectations, and intentions. Among the risks and uncertainties that could cause actual results to differ from those expressed in forward-looking statements include, but are not limited to: unaudited estimates of Bitcoin production; our future hash rate growth (EH/s); the anticipated benefits, construction schedule, and costs associated with the
For further information, please contact:
Investor Contact:
IR@Riot.Inc
303-794-2000 ext. 110
Media Contact:
303-794-2000 ext. 118
PR@Riot.Inc
Non-
In addition to financial measures presented under generally accepted accounting principles in
Adjusted EPS is a financial measure defined as Adjusted EBITDA divided by our diluted weighted-average shares outstanding.
We believe Adjusted EBITDA and Adjusted EPS can be important financial measures because they allow management, investors, and our board of directors to evaluate and compare our operating results, including our return on capital and operating efficiencies, from period-to-period by making such adjustments.
Adjusted EBITDA and Adjusted EPS are provided in addition to, and should not be considered to be a substitute for, or superior to, net income, the most comparable measure under GAAP for Adjusted EBITDA, and to diluted net income (loss) per share, the most comparable measure under GAAP for Adjusted EPS. Further, Adjusted EBITDA and Adjusted EPS should not be considered as an alternative to revenue growth, net income, diluted earnings per share or any other performance measure derived in accordance with GAAP, or as an alternative to cash flow from operating activities as a measure of our liquidity. Adjusted EBITDA and Adjusted EPS have limitations as analytical tools, and you should not consider such measures either in isolation or as substitutes for analyzing our results as reported under GAAP.
The following table reconciles Adjusted EBITDA to Net income (loss), the most comparable GAAP financial metric:
Three Months Ended | ||||||||
2023 | 2022 | |||||||
Net income (loss) | $ | (55,688 | ) | $ | 36,578 | |||
Interest (income) expense | 3,830 | 357 | ||||||
Income tax expense (benefit) | (4,969 | ) | 312 | |||||
Depreciation and amortization | 59,340 | 14,245 | ||||||
EBITDA | 2,513 | 51,492 | ||||||
Adjustments: | ||||||||
Non-cash/non-recurring operating expenses: | ||||||||
Stock-based compensation expense | (2,296 | ) | 3,042 | |||||
Acquisition-related costs | — | 78 | ||||||
Change in fair value of derivative asset | 5,778 | (43,683 | ) | |||||
Change in fair value of contingent consideration | — | 176 | ||||||
Unrealized (gain) loss on marketable equity securities | — | 1,611 | ||||||
Casualty-related charges (recoveries), net | 1,526 | — | ||||||
Other revenue, (income) expense items: | ||||||||
License fees | (24 | ) | (24 | ) | ||||
Adjusted EBITDA | $ | 7,497 | $ | 12,692 | ||||
The following table reconciles Adjusted EPS to Diluted net income (loss) per share, the most comparable GAAP financial metric:
Three Months Ended | ||||||||
2023 | 2022 | |||||||
Diluted net income (loss) per share | $ | (0.33 | ) | $ | 0.31 | |||
Interest (income) expense | 0.02 | — | ||||||
Income tax expense (benefit) | (0.03 | ) | — | |||||
Depreciation and amortization | 0.35 | 0.12 | ||||||
EBITDA | 0.01 | 0.43 | ||||||
Adjustments, per share: | ||||||||
Non-cash/non-recurring operating expense: | ||||||||
Stock-based compensation expense | (0.01 | ) | 0.03 | |||||
Acquisition-related costs | — | — | ||||||
Change in fair value of derivative asset | 0.03 | (0.37 | ) | |||||
Change in fair value of contingent consideration | — | — | ||||||
Unrealized (gain) loss on marketable equity securities | — | 0.01 | ||||||
Casualty-related charges (recoveries), net | 0.01 | — | ||||||
Other revenue, (income) expense items: | ||||||||
License fees | — | — | ||||||
Adjusted EPS | $ | 0.04 | $ | 0.10 | ||||
Diluted weighted average number of shares outstanding | 167,342,500 | 117,042,347 | ||||||
In addition to the non-GAAP financial measures of Adjusted EBITDA and Adjusted EPS described above, we believe “Bitcoin Mining revenue in excess of cost of revenues, net of power curtailment credits”, “Data Center Hosting revenue in excess of cost of revenues, net of power curtailment credits”, “Cost of revenues – Bitcoin Mining, net of power curtailment credits” and “Cost of revenues – Data Center Hosting, net of power curtailment credits” are additional performance measurements that represent a key indicator of the Company’s core business operations of both Bitcoin mining and Data Center Hosting.
We believe our ability to offer power back to the grid at market-driven spot prices, thereby reducing our operating costs, is integral to our overall strategy, specifically our power management strategy and our commitment to supporting the
We also believe netting the power sales against our costs can be an important financial measure because it allows management, investors, and our board of directors to evaluate and compare our operating results, including our operating efficiencies, from period-to-period by making such adjustments. We have allocated the benefit of the power sales to our Data Center Hosting and Bitcoin Mining segments based on their proportional power consumption during the periods presented.
Bitcoin Mining revenue in excess of cost of revenues, net of power curtailment credits, Data Center Hosting revenue in excess of cost of revenues, net of power curtailment credits, Cost of revenues – Bitcoin Mining, net of power curtailment credits and Cost of revenues – Data Center Hosting, net of power curtailment credits are provided in addition to and should not be considered to be a substitute for, or superior to Revenue – Bitcoin Mining, Revenue – Data Center Hosting, Cost of revenues – Bitcoin Mining or Cost of revenues – Data Center Hosting as presented in our consolidated statements of operations.
The following table presents reconciliations of these measurements to the most comparable
Three Months Ended | |||||||||
2023 | 2022 | ||||||||
Bitcoin Mining | |||||||||
Revenue | $ | 48,023 | $ | 57,945 | |||||
Cost of revenues | 21,899 | 19,094 | |||||||
Power curtailment credits | (1,937 | ) | (611 | ) | |||||
Cost of revenues, net of power curtailment credits | 19,962 | 18,483 | |||||||
Bitcoin mining revenue in excess of cost of revenues, net of power curtailment credits | $ | 28,061 | $ | 39,462 | |||||
Bitcoin mining revenue in excess of cost of revenues, net of power curtailment credits as a percentage of revenue | 58.4 | % | 68.1 | % | |||||
Data Center Hosting | |||||||||
Revenue | $ | 9,042 | $ | 9,694 | |||||
Cost of revenues | $ | 25,660 | $ | 14,985 | |||||
Power curtailment credits | (1,138 | ) | (1,941 | ) | |||||
Cost of revenues, net of power curtailment credits | 24,522 | 13,044 | |||||||
Data Center Hosting revenue in excess of cost of revenues, net of power curtailment credits | $ | (15,480 | ) | $ | (3,350 | ) | |||
Data Center Hosting revenue in excess of cost of revenues, net of power curtailment credits as a percentage of revenue | (171.2 | )% | (34.6 | )% | |||||
Total power curtailment credits | $ | (3,075 | ) | $ | (2,552 | ) |
Source:
2023 GlobeNewswire, Inc., source