Riot Platforms, Inc. ((RIOT)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Riot Platforms, Inc. recently held its earnings call, revealing a mixed sentiment among stakeholders. The company showcased significant strides in expanding its data center capacity and revenue growth, fueled by strategic land acquisitions and an effective power strategy. However, challenges such as a decline in Bitcoin production, decreased net income, and high SG&A expenses were also highlighted, painting a complex picture of Riot’s current financial landscape.
Significant Expansion in Data Center Capacity
Riot Platforms announced a major development at its Corsicana data center campus, with plans for the first two buildings representing 112 megawatts of critical IT data center capacity. The company is set to mobilize construction in the first quarter of 2026, marking a significant step in its expansion strategy.
Strong Revenue Growth
The company reported a robust total revenue of $180.2 million for the third quarter of 2025, marking an 18% increase from the previous quarter’s $153 million. This growth underscores Riot’s effective strategies and market positioning.
Bitcoin Holdings and Market Value
Riot ended the third quarter holding 19,287 Bitcoin, with a market value of $2.2 billion. This substantial holding reflects the company’s strong position in the cryptocurrency market.
Strategic Land Acquisition
Riot successfully acquired 67 acres contiguous with its original Corsicana site for $40 million. This acquisition enhances the company’s development capabilities and supports its long-term growth strategy.
Power Strategy and Cost Efficiency
Riot’s power strategy yielded $31 million in power credits, reducing the net cost of power to $0.032 per kilowatt hour. This positions Riot as a low-cost leader in the industry, bolstering its competitive edge.
Decline in Bitcoin Production
The company experienced a slight decline in Bitcoin production, from 1,426 in the previous quarter to 1,406. This was attributed to an 8% increase in the global hash rate, which outpaced Riot’s 3% growth in hash rate deployed.
Decreased Net Income
Riot reported a net income of $104.5 million for Q3 2025, a decrease from $219.5 million in the previous quarter. This decline highlights some of the financial challenges the company is facing.
High SG&A Expenses
Total SG&A expenses for the third quarter amounted to $69.8 million, with non-cash stock-based compensation accounting for $32.9 million and $7.5 million in temporary litigation-related costs, indicating areas where Riot may need to optimize.
Forward-Looking Guidance
Looking ahead, Riot Platforms is focused on strategic initiatives and financial performance. The company plans to commence Core & Shell development for two buildings at the Corsicana data center campus in Q1 2026, utilizing 1 gigawatt of approved power capacity. Riot emphasized its strong balance sheet, robust cash flow, and strategic focus on transitioning power capacity towards data center development to meet growing market demand.
In summary, Riot Platforms’ earnings call revealed a company making significant strides in data center expansion and revenue growth, despite facing challenges in Bitcoin production and net income. With strategic land acquisitions and a strong power strategy, Riot is well-positioned to capitalize on future opportunities, although it must address financial challenges to sustain its growth trajectory.