Q1 2025 Riot Platforms Inc Earnings Call

Operator: Good day and thank you for standing by.

Good day and thank you for standing by welcome to the right platforms first quarter 2025 earnings Conference call. Please note that all participants have been placed in listen only mode until the question and answer session begins following the company's presentation of his prepared remarks.

Operator: Welcome to the Riot Platform's first quarter 2025 earnings conference. Please note that all participants have been placed in listen-only mode until the question and answer session begins following the company's presentation of its prepared remarks. Please also be advised that today's call is being recorded.

Speaker Change: Please also be advised that today's call is being recorded I would now like to hand, the conference over to Phil Mcpherson, Vice President of capital markets and Investor Relations and bright platforms. Please go ahead.

Phil Mcpherson: I would now like to hand the conference over to Phil McPherson, Vice President of Capital Markets and Investor Relations at Riot Platforms. Please go ahead. Thank you, Lisa. Good afternoon, and welcome to Riot Platform's first quarter 2025 earnings conference call. My name is Phil McPherson, Vice President of Capital Markets and Investor Relations.

Speaker Change: Thank you Lisa good afternoon, and welcome to riot platforms first quarter 2025 earnings Conference call. My name is stomach person Vice president of capital markets and Investor Relations and joining me on today's call from Ryan or Jason less.

Phil Mcpherson: And joining me on today's call from Riot are Jason Les, CEO, Benjamin Yee, Executive Chairman, Colin Yee, CFO, and Jason Chung, Executive Vice President and Head of Corporate Development and Strategy.

Speaker Change: Benjamin the executive Chairman colony, CFO, and Jason Chang Executive Vice President and head of corporate development and strategy.

Phil Mcpherson: On the Riot Investor Relations website, you can find our first quarter 2025 earnings press release and 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 first quarter 2025 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 uncertainty.

Speaker Change: On the right Industrial relations website, you can find our first quarter 2025 earnings press release and accompanying earnings presentation, which are intended to supplement todays 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.

Speaker Change: 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 first quarter 2025 performance.

Speaker Change: 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 and comments and responses made during today's call Andy.

Phil Mcpherson: Actual results could materially differ due to factors discussed in today's earnings press release, in comments and responses made during today's call, and in the risk factors section of our Form 10-K and Form 10-Q, including for the three months ended March 31st, 2025, which will be filed later today, as well as other filings with the Securities and Exchange Commission.

Speaker Change: The risk factors section of our Form 10-K, and Form 10-Q, including for the three months ended March 31, 2025, which will be filed later today as well as other filings with the Securities and Exchange Commission.

Jason Les: With that, I will turn the call over to Jason Les, CEO of Riot Platforms. Thank you, Phil, and good afternoon, everyone. Before we dive into Riot's first quarter 2025 results, I'd like to begin with a review of Riot's key accomplishments during the first quarter of 2025. mining uptime. Throughout the quarter, we were able to achieve an average uptime of nearly 90% in our Bitcoin mining operation. representing a significant improvement on prior periods and a testament to the work our teams have been putting in to enhance our operating efficiency.

Speaker Change: With that I will turn the call over to Jason less CEO of REIT platforms.

Yeah.

Speaker Change: Thank you Phil and good afternoon, everyone.

Speaker Change: Before we dive into Reits first quarter 2025 results I'd like to begin with a review of key accomplishments during the first quarter of 2025 months.

Speaker Change: Mining uptime.

Speaker Change: Throughout the quarter, we were able to achieve an average uptime at nearly 90% and a bitcoin mining operations, representing a significant improvement on prior period and a testament to the work our teams have been putting in to enhance our operating efficiency.

Jason Les: The Acquisition of Rhodium Assets and Settlement Agreement. As announced on April 28th, Riot has acquired certain assets of Rhodium, Riot's final hosting customer, including all of Rhodium's mining operations and access to 125 megawatts of contracted power at the Rockdale facility. Riot and Rhodium have also entered into a settlement agreement in which we have mutually agreed to end all litigation between the two parties. This acquisition can potentially enhance our hashrate capacity in the near future, while giving us access to significant power capacity for future development. Further, it will significantly reduce operating losses and litigation costs associated with this legacy contract, which was inherited as part of our acquisition of Windstone US in 2021.

Speaker Change: The acquisition of rhodium assets and settlement agreement.

Speaker Change: As announced on April 28th right, that's acquired certain assets of rhodium why its final hosting customer, including all of rhodium mining operations and access to 125 megawatts of contracted power at the Rockville facility.

Speaker Change: And rhodium have also entered into a settlement agreement in which we have mutually agreed and all litigation between the two parties.

Speaker Change: This acquisition can potentially enhance our hatchery capacity in the near future, while giving us access to significant power capacity for future development.

Speaker Change: Further it will significantly reduce operating losses and litigation costs associated with this legacy contracts, which was inherited as part of our acquisition of <unk> in 2021.

Jason Les: This strategic acquisition aligns closely with Riot's long-term objectives to streamline operations, significantly reduce ongoing operating costs, and reallocate resources to our more profitable core business.

Speaker Change: This strategic acquisition aligns closely with Reits long term objective to streamline operations significantly reduce ongoing operating costs and reallocate resources to our more profitable core business.

Jason Les: Prudent Financial Management. As a result of our strong balance sheet, Riot has had limited use of our ATM program in 2025 year-to-date, limiting dilution to our shareholders. Instead, we have been able to access other sources of financing to fund the necessary capital for growth and operating expenses.

Speaker Change: Prudent financial management.

Speaker Change: As a result of our strong balance sheet riot has had limited use of our ATM program in 2025 year to date limiting dilution to our shareholders.

Speaker Change: We have been able to access other sources of financing to fund the necessary capital for growth and operating expenses.

Jason Les: For example, during the month of April, Riot sold our monthly Bitcoin production and also entered into our first Bitcoin collateralized credit facility with Coinbase, allowing us to leverage our strength to reduce solution while maintaining a strong balance sheet, which remains a core pillar of our business strategy.

Speaker Change: For example, <unk>.

Speaker Change: During the month of April right sold our monthly Bitcoin production and also entered into our first bitcoin collateralized credit facility with coinbase, allowing us to leverage our strength to reduce solution, while maintaining a strong balance sheet, which remains a core pillar of our business strategy.

Jason Les: Advancing our AIHPC data center business. Riot has made significant progress on building our data center business this quarter and advancing on this objective remains our primary focus as a management team. In addition to the completion of Altman Salon's feasibility study of Corsicana for data center development, we are expanding our site footprint with additional land acquisitions, are enhancing our internal expertise with key additions to the team, and are advancing ongoing engagement with potential counterparts.

Speaker Change: Advancing our AI HCC data center business.

Speaker Change: Riot has made significant progress on building our data center business this quarter and advancing on this objective remains a primary focus of the management team.

Speaker Change: In addition to the completion of all <unk> salons feasibility study of Corsicana.

Speaker Change: Turning to development, we are expanding our footprint with additional land acquisitions are enhancing our internal expertise with key additions to the team and are advancing ongoing engagement with potential counterparties.

Jason Les: I am proud of what we've been able to achieve in the first quarter of 2025 and look forward to continuing to report on our progress throughout the year and beyond.

Speaker Change: I am proud of what we've been able to achieve in the first quarter of 2025 and look forward to continuing to report on our progress throughout the year and beyond.

Colin Yee: With that, I would now like to turn the call over to Colin Yee, CFO of Riot Platforms, to present our Q1 2025 financial update. Thank you, Jason. I'm excited to present Riot's financial results for the first quarter of 2025.

Speaker Change: With that I would now like to turn the call over to colony CFO, Brian platforms to present, our Q1 2025 financial update.

Brian Platforms: Thank you Jason I'm excited to present <unk> financial results for the first quarter of 2025.

Colin Yee: For ease of reference, we have highlighted key metrics on slide six, which presents a snapshot of key financial and operating metrics for the first quarter of 2025. I'll give everyone a moment to look over the snapshot before I jump into the details on the following slide. During the first quarter of 2025, Riot increased its self mining hash rate from 31.5 exahash to 33.7 exahash, representing a 7% increase over the course of the quarter, nearly keeping pace with the increase in global hash rate, which rose by 10% in the same period. Despite the global network hash rate growing at a slightly greater pace than Riot's deployed hash rate, Riot produced 1,530 Bitcoin in the first quarter of 2025, an increase as compared to the 1,516 Bitcoin produced in the prior quarter.

Brian Platforms: For ease of reference we have highlighted key metrics on slide six which presents a snapshot of key financial and operating metrics for the first quarter of 2025.

Brian Platforms: I'll give everyone a moment to look over the snapshot before I jump into the details on the following slides.

Brian Platforms: Yeah.

Brian Platforms: During the first quarter of 2025.

Brian Platforms: Right increased itself mining hash rate from 31, five extra harsh to $33 seven extra hash representing a 7% increase over the course of the quarter nearly keeping pace with the increasing global harsh rate, which rose by 10% in the same period.

Brian Platforms: Despite the global network hash rate growing at a slightly greater pace and writes deployed harsh rate right produced 1530, <unk> point in the first quarter of 2025.

Brian Platforms: An increase as compared to the 1516 bitcoin produced in the prior quarter.

Colin Yee: Riot was able to mine more Bitcoin than in the prior quarter due to substantial improvements in our operating efficiency. Year to date for 2025, we have increased Bitcoin holdings per million fully diluted shares from 44.3 to 47.4, representing a Bitcoin yield of 7% through the period ended March 31, 2025. Going forward, we will continue to focus on generating an accretive Bitcoin yield in order to ensure that our shareholders are able to participate in the long term value creation opportunity that Bitcoin represents. Riot also ended the quarter holding 19,223 Bitcoin, an increase of 8% relative to the 17,722 Bitcoin that we held at the end of 2024.

Brian Platforms: Right was able to mine more bitcoin than in the prior quarter due to substantial improvements in our operating efficiency.

Brian Platforms: Year to date for 2025, we have increased bitcoin holdings per million fully diluted shares from $44 three to 47, four representing a bitcoin yield of 7% through the period ended March 31 2025.

Brian Platforms: Going forward, we will continue to focus on generating and accretive bitcoin yield in order to ensure that our shareholders are able to participate in the long term value creation opportunity that bitcoin represents.

Brian Platforms: Ryan also ended the quarter, holding 19223, bitcoin and increase of 8% relative to the 17722 bitcoin that we held at the end of 2024.

Colin Yee: For the first quarter of 2025, Riot reported total revenue of $161.4 million as compared to $142.6 million for the previous quarter, a 13% increase quarter over quarter. This increase was primarily driven by increased uptime and improved operating efficiency in our Bitcoin mining business. Gross profit for the first quarter of 2025 was $73.6 million as compared to gross profit of $55.7 million for the prior quarter. Gross margin in the first quarter of 2025 equaled 46%, an increase from 39% in the prior quarter. Non-GAAP-adjusted EBITDA for the first quarter of 2025 was negative $176.3 million as compared to non-GAAP-adjusted EBITDA of $296.3 million for the prior quarter.

Brian Platforms: For the first quarter of 2025, right reported total revenue of $161 4 million as compared to $142 6 million for the previous quarter, a 13% increase quarter over quarter.

Brian Platforms: This increase was primarily driven by increased uptime and improved operating efficiency and our bitcoin mining business.

Brian Platforms: Gross profit for the first quarter of 2025 was $73 6 million as compared to gross profit of $55 7 million for the prior quarter.

Brian Platforms: Gross margin in the first quarter of 2025 equaled, 46% an increase from 39% in the prior quarter.

Brian Platforms: Yeah.

Brian Platforms: non-GAAP adjusted EBITDA for the first quarter of 2025 was negative $176 3 million as compared to non-GAAP adjusted EBITDA of $296 3 million for the prior quarter.

Colin Yee: Net loss for the first quarter of 2025 was $296.4 million or $0.90 per share compared to a net income of $136.4 million or $0.43 per share for the prior quarter. This net loss is primarily driven by mark-to-market adjustments due to the quarter-end decline in Bitcoin price and marketable securities, totaling $271.2 million. As a reference, the Bitcoin price at the end of the fourth quarter of 2024 was $93,354, while the price at the end of the first quarter of 2025 was $82,534. This resulted in a mark-to-market downward adjustment of $208 million for the quarter. Net loss for the quarter also included depreciation and amortization expense of $77.9 million and non-cash stock-based compensation expense of $29.6 million.

Brian Platforms: Net loss for the first quarter of 2025 was $296 4 million or 90 per share compared to a net income of $136 4 million or <unk> 43 per share for the prior quarter.

Brian Platforms: This net loss was primarily driven by mark to market adjustments due to the quarter and decline in bitcoin price and marketable securities totaling $271 2 million.

Brian Platforms: As a reference the bitcoin price at the end of the fourth quarter of 2024 was $93354 while the price at the end of the first quarter of 2025 was $82534.

Brian Platforms: This resulted in a mark to market downward adjustment of $208 million for the quarter.

Brian Platforms: Net loss for the quarter also included depreciation and amortization expense of $77 9 million and noncash stock based compensation expense of $29 6 million.

Colin Yee: Cash SG&A for the quarter was $41.9 million, including one-time litigation expenses of $8.6 million and advisory fees of $3.0 million. Excluding these one-time expenses, Riot's cash SG&A expenses equaled $30.6 million. in line with our prior guidance of a run rate of $30 to $33 million per quarter for 2025. For the first quarter of 2025, Bitcoin mining revenue totaled 142.9 million, a 13% increase relative to the prior quarter Bitcoin mining revenue of 126.3 million. This increase was primarily driven by an increase in Bitcoin production for the quarter, which resulted from our 7% increase in self mining hash rate and enhanced operating efficiency.

Brian Platforms: Cash SG&A for the quarter was $41 9 million, including one time litigation expenses of $8 6 million and advisory fees of 3.0 million.

Brian Platforms: Excluding these one time expenses right cash SG&A expenses equaled $30 6 million.

Brian Platforms: In line with our prior guidance of a run rate of $30 million to $33 million per quarter for 2025.

Brian Platforms: For the first quarter of 2025, Bitcoin mining revenue totaled $142 9, million% to 13% increase relative to the prior quarter Bitcoin mining revenue of $126 3 million.

Brian Platforms: This increase was primarily driven by an increase in bitcoin production for the quarter, which resulted from our 7% increase in self mining hatch rates and enhanced operating efficiency.

Colin Yee: Bitcoin mining gross margin for the quarter was 48%, nearly flat when compared to the Bitcoin mining gross margin of 50% for the prior quarter. Direct cost to mine excluding depreciation in the first quarter of 2025 was $43,808 per Bitcoin, of which power costs amounted to $35,313 per Bitcoin, or 81% of total direct costs per Bitcoin. quarter over quarter, our net power costs decreased from 3.8 cents a kilowatt hour to 3.4 cents a kilowatt hour, as Riot's power strategy continued to yield strong results. direct non power costs, which include direct labor, minor insurance, minor and minor related equipment repairs, land lease and related property taxes, network costs, and other utility expenses totaled $8,495 or 19% per Bitcoin mined down from the fourth quarter of 2024.

Brian Platforms: It quite mining gross margin for the quarter was 48% nearly flat when compared to the bitcoin mining gross margin of 50% for the prior quarter.

Brian Platforms: Direct cost of mine, excluding depreciation in the first quarter of 2025 was $43808 perfect coin.

Brian Platforms: Of which power costs amounted to $35313 per bitcoin or 81% of total direct cost per bit coin.

Brian Platforms: Quarter over quarter, our net power costs decreased from three eight cents per kilowatt hour to $3.04 a kilowatt hour as Reits power strategy continued to yield strong results.

Brian Platforms: Direct non power costs, which include direct labor minor insurance minor minor related equipment repairs.

Brian Platforms: Land lease and related property taxes.

Brian Platforms: Our costs and other utility expenses totaled $8495 or 19% per bit quite mind down from the fourth quarter of 2024, when direct non power costs accounted for 21% of total costs.

Colin Yee: When direct non power costs accounted for 21% of total costs. This represents the third consecutive quarter in which direct non power costs as a percentage of total direct cost per Bitcoin have dropped, and is a strong demonstration of Riot's ability to leverage improved economies of scale at our operating facilities. For the first quarter of 2025, engineering revenue totaled $13.9 million, a 20% increase relative to the prior quarter engineering revenue of $11.6 million. Total revenue does not include $6.4 million of intercompany purchases made in the first quarter by Riot for capital expenditures associated with our mining operations.

Brian Platforms: This represents the third consecutive quarter in which direct non power costs as a percentage of total direct cost per bitcoin have dropped.

Brian Platforms: And as a strong demonstration of <unk> ability to leverage improved economies of scale at our operating facilities.

Brian Platforms: For the first quarter of 2025 engineering revenue totaled $13 9, million% to 20% increase relative to the prior quarter engineering revenue of $11 6 million.

Brian Platforms: Total revenue does not include $6 4 million of intercompany parrot purchases made in the first quarter by riot for capital expenditures associated with our mining operations.

Colin Yee: Riot's prior fiscal year 2025 guidance of $100 million in engineering revenue included approximately $16 million of intercompany purchases, which under GAAP accounting are not included in our reported consolidated results. That being said, we remain on track to meet GAAP guidance of $84 million and we expect revenue to continue increasing in upcoming quarters. The Engineering Division also saw a return to profitability this quarter, achieving a gross profit of $2.1 million, representing a gross margin of 15%, as compared to a gross loss of $2.4 million in the prior quarter.

Brian Platforms: Brian its prior fiscal year 2025 guidance of $100 million and engineering revenue included approximately $16 million of intercompany purchases, which under GAAP accounting are not included in our reported consolidated results.

Brian Platforms: That being said we remain on track to meet GAAP guidance of $84 million and we expect revenue to continue increasing in upcoming quarters.

Brian Platforms: The Engineering Division also saw a return to profitability this quarter, achieving a gross profit of $2 1 million, representing a gross margin of 15% as compared to a gross loss of $2 4 million in the prior quarter.

Colin Yee: Our recent acquisition of E4A Solutions has helped support this profitability rebound in our engineering division, which continued to see robust demand growth as this was the first full quarter, which incorporated the financial results of E4A Solutions in our engineering business.

Brian Platforms: Our recent acquisition of <unk> solutions has helped support this profitability rebound and our engineering division, which continue to see robust demand growth. As this was the first full quarter, which incorporated the financial results of <unk> solutions in our engineering business.

Jason Chung: With that, I would now like to turn the call over to Jason Chung to provide an update on our most recent transaction. Thank you, Colin. On April 28, Riot announced the acquisition of Rhodium's operations and tangible assets, including all ASIC miners, at our Rockdale facility, as part of a settlement agreement, which also included an agreement to mutually dismiss all existing litigation and a release on all future claims not connected to the closing of this transaction. The transaction consideration totaled $185 million and was comprised of $129.9 million in cash. return of Rhodium's $6.1 million power security deposit and $49 million in Riot common stock.

Brian Platforms: With that I would now like to turn the call over to Jason Chang to provide an update on our most recent transaction.

Jason Chang: Thank you Colin.

Jason Chang: On April 28, right announced the acquisition of rhodium operations' intangible assets, including all ASIC miners at our Rockville facility as part of our settlement agreement, which also included an agreement to mutually dismissed all existing litigation and a relief on all future claims not connected to the closing of this transaction.

Jason Chang: <unk>.

Jason Chang: The transaction consideration totaled $185 million and was comprised.

Jason Chang: Rice of $129 $9 million in cash.

Jason Chang: <unk> <unk> $6 1 million power security deposit.

Jason Chang: And $49 million in riot common stock.

Jason Chung: For background context, Riot assumes certain legacy Winstone hosting agreements, including the agreement with Rhodium, as part of Riot's acquisition of Winstone US in May 2021. As outlined on this slide, Rhodium formerly occupied roughly one half of building B and all of building C at our Rockdale facility and had contractual rights to 125 megawatts of power capacity. representing a significant portion of total square footage and power capacity available on-site. This legacy hosting contract was responsible for an approximately $14.6 million loss in 2024 alone, and had a remaining term through December 2030. With this acquisition and settlement agreement, Riot has completely exited the hosting business and now has full control over the on-site infrastructure and 125 megawatts of power capacity previously dedicated to Rhodium at our Rockdale facility.

Jason Chang: For background context, right assumes certain legacy winstone hosting agreements, including the agreement with rhodium as part of rights acquisition of Winstone U S. In May 2021.

Jason Chang: As outlined on this slide rhodium, formerly occupied roughly one half of building D and all of building <unk> at our Rockville facility had contractual rights to 125 megawatts of power capacity, representing a significant portion of total square footage and power capacity available on site.

Jason Chang: This legacy hosting contract was responsible for an approximately $14 $6 million loss in 2024 alone and has a remaining term through December 2030.

Jason Chang: With this acquisition and settlement agreement right has completely exited the hosting business and now has full control over the onsite infrastructure and 125 megawatts of power capacity previously dedicated to iridium at our Rockville facility.

Jason Chung: We are in the process of evaluating the best use of this additional capacity to optimize the value of the additional infrastructure, power capacity, and on-site assets going forward.

Jason Chang: We are in the process of evaluating the best use of this additional capacity to optimize the value of the additional infrastructure power capacity and onsite assets going forward.

Jason Les: I will now turn the call back over to Jason Les. Thank you, Jason. Riot had $48.9 million in capital expenditures in the first quarter, primarily to continue the 600 megawatt substation expansion at Corsicana and advance on initiatives to enhance the optionality of the site for data center development. We have also encouraged capital expenditures to grow Bitcoin mining hash rate at our Kentucky facility. As part of our work developing our AI HPC data center business, Riot has secured the necessary easements for EGIS or Water or Secanum, while also acquiring additional land parcels for data center development.

Jason Less: I will now turn the call back over to Jason less.

Speaker Change: Thank you Jason.

Speaker Change: Why it had $48 9 million in capital expenditures in the first quarter, primarily to continue the 600 megawatt substation expansion at Corsicana and advance on initiatives to enhance the optionality of the site are data center development.

Speaker Change: We have also incurred capital expenditures to grow bitcoin mining cash rate at our Kentucky facilities.

Speaker Change: As part of our work developing our AI HTC datacenter business riot has secured the necessary easements.

Speaker Change: Or can you just for water corsicana, while also acquiring additional land parcels for data Center development.

Jason Les: Riot is also in the process of securing additional fiber capacity for Corsicana, which will increase the number of connections from two to four. By taking these early steps to address long-lead items, we continue to aggressively pursue a value-maximizing outcome for our data center business. Riot's hashrate growth forecast for 2025 remains unchanged from our previously issued guidance. However, with the recent acquisition of Rodion's assets at our Rockdale facility, there is potential upside to our hashrate forecast. Our operations team is currently in the process of performing a full evaluation of the assets to determine the value maximizing use of this new capacity.

Ryan: Ryan It's also in the process of securing additional fiber capacity for Corsicana, which will increase the number of connections from two to four.

Ryan: By taking these early steps to address long lead items, we continue to aggressively pursue a value maximizing outcome for our data center business.

Ryan: Right past rate growth forecast for 2025 remains unchanged from our previously issued guidance. However, with the recent acquisition of rhodium assets at our Rockies facility, there is potential upside to our <unk> forecast.

Ryan: Our operations team is currently in the process of performing a full evaluation of the assets to determine the value maximizing use of this new capacity.

Jason Les: As this work is completed, we will update investors on the anticipated impact these new assets will have on our hash rate guidance.

Ryan: As this work is completed we will update investors on the anticipated impact these new assets will have on our tax rate guidance.

Jason Les: Earlier this year, Riot commissioned a feasibility study with Altman Salome, a leading consultant to the data center industry, to validate the opportunity for an AIHPC data center campus at our Corsicana facility and to identify potential areas for improvement. We were pleased with the results of Altman Salon's feasibility study, which reinforced our thesis that large scale access to power in close proximity to Tier 1 markets, as we have at Corsicana, is scarce and valuable. Altman Stallone identifies four primary factors at our Corsicana facility that they believe make it ideally suited for data center development. Number one, secured power.

Ryan: Earlier this year, Ryan commissioned a feasibility study with <unk>, a leading consultants to the data center industry to validate the opportunity for an AI HCC data Center campus.

Ryan: Corsicana facility and to identify potential areas for improvement.

Ryan: We were pleased with the result of augment salons feasibility study, which reinforced our thesis than large scale access to power in close proximity to tier one markets. As we have of course scanner is scarce and valuable.

Ryan: <unk> alone identified four primary factors at our Corsicana facility that they believed make it ideally suited our data center development.

Ryan: Number one secured power.

Jason Les: Corsicana is fully approved to draw 1 gigawatt of power, and we are actively developing infrastructure to support this power availability. Number two, owned land. Corsicana has 35 acres immediately ready to develop a first phase data center. And in the coming weeks, we are closing on the acquisition of significant additional land. Number three, the attractive location. Corsicana is only 60 miles from a Tier 1 data center market in Dallas, in close proximity to existing core hyperscaler architectures. And finally, scalability. Beyond the 600 megawatts of available capacity at Corsicana, Riot has additional expansion potential through its existing portfolio, and our engineering division provides critical advantages to deliver on aggressive timelines.

Ryan: Corsicana, it's fully approved to draw one gigawatt of power and we are actively developing infrastructure to support this power availability.

Ryan: Number two owned land Corsicana has 35 acres immediately ready to develop a first phase data center and in the coming weeks. We are closing on the acquisition of significant additional land.

Ryan: Number three the attractive location.

Ryan: Corsicana is only 60 mile on tier one data center market in Dallas in close proximity to existing core Hyperscale architecture.

Ryan: And finally scalability.

Speaker Change: Beyond the 600 megawatts of available capacity at Corsicana, Ryan has additional expansion potential through its existing portfolio and our engineering Division provides critical advantages to deliver on our aggressive timelines.

Jason Les: The civil work already completed at Corsicana provides a prime development path for immediate first phase development for our AIHTC data center campus. The overview map on this slide shows the current layout of the site, which features the existing Bitcoin mining operation on 20 acres, our current and future substation expansion, which upon completion will cover 15 acres, and the remaining available footprint, totaling 35 acres. While this area is well suited for a first phase development, we have proactively been procuring additional development acreage to fully utilize all one gigawatt of power. This month, we will be closing on an additional 355 acres of land less than a mile away from our Corsicana facility, and we are actively pursuing multiple options to add additional acreage in the immediate vicinity of our Corsicana facility for future development.

Speaker Change: The civil work already completed.

Speaker Change: Our Corsicana provides a prime development path for immediate first space development more AI HCC data Center campus.

Speaker Change: Overview map on this slide shows the currently out of the site, which features the existing bitcoin mining operation on 20 acres, our current and future substation expansion, which upon completion will cover 15 acres and the remaining available footprint totaling 35 acres.

Speaker Change: While this area is well suited for our first phase development, we have proactively been procuring additional development acreage to fully utilize all one gigawatt of power.

Speaker Change: This month, we will be closing on an additional 355 acres of land less than a mile away from our <unk>, Canada facility and we are actively pursuing multiple options to add additional acreage in the immediate vicinity of our corsicana facility for future development.

Jason Les: This additional land, combined with the favorable zoning and tax treatment in Navarro County, allows for maximum flexibility and expedited development timelines that we can offer to tenants. The Corsicana facility is already well suited for data center development, and some of the largest constraints facing the market today, such as access to power, have already been solved. We are actively working to further improve the site and enhance its attractiveness to tenants. In addition to the progress on the power and land we have already made, additional areas where we have made progress in Forsakana include water. We are progressing with the development of two on-site wells and a municipal water source to bring ample additional water supply in 2026.

Speaker Change: This additional land combined with the favorable zoning and tax treatment and Navarro County allows for maximum flexibility and expedited and expedited development timelines that we can offer to tenants.

Speaker Change: The Corsicana facility is already well suited for data center development and some of the largest constraints facing the market today, such as access to power have already been solved.

Speaker Change: We are actively working to further improve the site and enhanced its attractiveness to tenants.

Speaker Change: In addition to the progress on the power and land we have already made additional areas, where we have made progress and of course. We cannot include water. We are progressing with the development up to on site wells and our municipal water source to bring ample additional water supply in 2026.

Jason Les: and Connectivity. We are in the process of bringing in additional fiber lines to the site to ensure an optimal amount of redundancy and diverse paths. This continued progress will ensure that our Corsicana site is the most attractive overall offering possible. We are working on an aggressive timeline to achieve the key milestones required for Riot to execute on our data center business objective. In just the past few months, we have engaged industry experts, added expertise to our board of directors, and engaged financial advisors. all while continuing to develop the critical infrastructure components needed to achieve energization in 2026.

Speaker Change: In connectivity, we are in the process of bringing in additional fiber lines to the site to ensure an optimal amount of redundancy and diverse paths.

Speaker Change: This continued progress will ensure that our corsicana site is the most attractive overall operating possible.

Speaker Change: We are working on an aggressive timeline to achieve the key milestones required for riot to execute on our data center business objectives and.

Speaker Change: In just the past few months, we have engaged industry experts added expertise to our board of directors and engaged financial advisors, all while continuing to develop the critical infrastructure components needed to achieve <unk> in 2026.

Jason Les: Over the next few quarters, we will be further expanding our internal expertise to key hires. We anticipate we will soon announce a best-in-class team to further drive top-level execution on our data center business. This will allow us to complete the basis of design for the first phase of the Corsicana Data Center campus, which will ultimately result in us securing an attractive lease with a high quality tenant. We are continuing to make rapid progress through the pursuit of this initiative and have engaged with several counterparties who are already performing due diligence and will continue to share updates on our completion of these key milestones as they occur.

Speaker Change: Over the next few quarters, we will be further expanding our internal expertise to key hires and anticipate we will soon announce a best in class team to further drive top level execution on our data center business.

Speaker Change: This will allow us to complete the basis of design for the first phase of the CT scanner data Center campus.

Speaker Change: Which will ultimately result in a secure and attractive lease with a high quality tenant.

Speaker Change: We are continuing to make rapid progress through the pursuit of this initiative and have engaged with several counterparties, who are already performing due diligence and will continue to share updates on our completion of these key milestones as they occur.

Jason Les: In closing, Riot's first quarter 2025 results were driven by our Bitcoin mining business and resulted in one of our strongest quarters as a result of improved operating uptime and other efficiencies. Riot's cost to mine in the first quarter of 2025 was essentially flat with the fourth quarter of 2024, despite the network difficulty increasing by 10%. Riot's proven power strategy continues to differentiate us from our competitors. This strategy continues to result in one of the lowest cost to mine Bitcoin amongst our peers, a key differentiator in our industry. Strong and efficient Bitcoin production combined with prudent financial management has resulted in a Bitcoin yield of 7% year to date.

Speaker Change: In closing.

Speaker Change: <unk> first quarter 2025 results were driven by our bitcoin mining business and resulted in one of our strongest quarters as a result of improved operating uptime and other efficiencies.

<unk> cost of mine in the first quarter of 2025 was essentially flat with the fourth quarter of 2024, despite the network difficulty increasing by 10%.

Speaker Change: Rice proven tower strategy continues to differentiate us from our competitors. This strategy continues to result in one of the lowest cost to mine bitcoin amongst our peers a key differentiator in our industry.

Speaker Change: Strong and efficient bitcoin production combined with prudent financial management has resulted in a bitcoin yield of 7% year to date.

Jason Les: We will continue to focus on achieving industry-leading results while minimizing dilution and accomplishing our goal of maximizing value of all available power capacities. The development and leasing of an AIHPC data center is our primary focus in 2025, and we will continue to build on the incredibly positive momentum already underway. We are investing in building a design ready to meet hyperscaler demand and create the most compelling data center offering possible, as we sit in an enviable position with one of the most attractive data center sites available in the country.

We will continue to focus on achieving industry, leading results, while minimizing dilution and accomplishing our goal of maximizing value of all available power capacity.

Speaker Change: The development and leasing of an AI HCC data center is our primary focus in 2025, and we will continue to build on the incredibly positive momentum already underway.

Speaker Change: We are investing in building a design ready to meet Hyperscale demand and create the most compelling data center offering possible as we sit in an enviable position with one of the most attractive data center sites available in the country.

Jason Les: I look forward to updating you on our progress.

Speaker Change: I look forward to updating you on our progress.

Operator: We will now open the call up for questions. Operator. Thank you.

We will now open the call up for questions operator.

Operator: As a reminder, if you would like to ask a question, please press star 11 on your. You will then hear an automated message advising your hand is If you would like to remove yourself from the queue, press star 11.

Speaker Change: Thank you as a reminder, if you would like to ask a question. Please press star one on your telephone you will then hear an automated message advising your hand as rates.

Speaker Change: I would like to remove yourself from the queue plus or one line of that.

Operator: We also ask that you wait for your first and last name to be announced before proceeding with your question. One moment.

Speaker Change: We also ask that you wait for your first and last name to be announced before proceeding with your question one moment.

Operator: for the first question. And our first question will come from the line of Nick Giles of B. Reilly Securities.

Speaker Change: So the first question.

Speaker Change: And our first question will come from the line of Nick <unk> of B Riley Securities. Your line is open.

Nick Giles: Your line is open. Thank you, operator. Good afternoon, everyone. And guys, congrats on the progress so far.

Speaker Change: Thank you operator, good afternoon, everyone and guys. Congrats on the progress so far my first question.

Jason Les: My first question, you know, if I'm not mistaken, Riot was behind the inception of the large flexible load task force, if I'm saying that correctly. And so I was curious what your main learnings are thus far in this process, where you could be moving away from power loads that are more flexible towards, you know, power loads that are more redundant in nature. Yeah, Nick, I wouldn't say Riot was necessarily behind the large flexible load task force. The inception of that task force was from legislative action in Texas. But we are closely involved in public policy efforts.

Speaker Change: If I'm not mistaken right was behind the inception of the large flexible load task force, if im saying that correctly. So I was curious what your main learnings or thus far in this process, where you could be moving away from power loads that are more flexible towards.

Speaker Change: Power loads that are more redundant in nature.

Speaker Change: Okay.

Speaker Change: Yes.

Ryan: Hey, Ryan it was necessarily behind the large flexible task force.

Speaker Change: Inception of that task force was from <unk>.

Speaker Change: Legislative actions in Texas, but we are closely involved in public policy efforts. So we really keep our ear to the ground on that and try to contribute.

Jason Les: So we really keep our ear to the ground on that and try to contribute industry insight, expertise, and viewpoints to ensure regulators are as successful as possible with what they're trying to accomplish. So the color I can give you is that you think about the large flexible load task force, it's not just about curtailing for high prices or participating in the ancillary services, although that's a big part of it. There's a host of technical qualities and characteristics that it's important for all large loads to meet on a grid. I think we've developed a very strong capability with respect to understanding regulator viewpoints, understanding grid operator requirements and what they're looking for for any type of large load.

Speaker Change: EMS industry insights expertise and.

Speaker Change: <unk> insurance regulators are as successful as possible.

Speaker Change: Trying to accomplish so the color I can give you is that when you think about the large flexible low task force is not just about.

Speaker Change: Our tailing for high prices are participating in ancillary services, although thats a big part of it there is a host.

Speaker Change: Technical qualities.

Speaker Change: Qualities and characteristics that it's important for all large loads to meet on a grid.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: Sure.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: The technical aspects and requirements and I think.

Speaker Change: Very strong capability with respect to understanding regulator viewpoints understanding grid, operator, Clermont them, what they're looking for any type of Barcelona.

Jason Les: I think that experience interacting with grid operators is one of the reasons that Riot is so successful at securing power land and operating sites at really unprecedented volumes of power.

Speaker Change: Experience interacting with great operators.

Brian Platforms: The reasons that Brian.

Brian Platforms: So successful at Sperry empowered land and operating sites.

Brian Platforms: Really unprecedented volumes of power.

Nick Giles: Jason, I appreciate all that color.

Speaker Change: Jason I appreciate all that color. My next question was just really how youre thinking about how youre approaching potential economics here given that it seems like some of these key capital projects are being completed now what could the benefit ultimately be in any deal or is there any tar.

Jason Les: My next question was just really how you're thinking about how you're approaching potential economics here, given that it seems like some of these key capital projects are being completed now, what could the benefit ultimately be in any deal? Or is there any targeted level of CapEx that we should be thinking about on the back? I think it's too early to know what that exact type of target is, you know, there remains a variety of structures and flavors that this could come together. Of course, we're focused on the structure that is going to maximize shareholder value.

Speaker Change: Good level of Capex that we should be thinking about on the bankruptcies.

Speaker Change: I think.

Speaker Change: It's too early to know what that exact type of target is.

Speaker Change: There remains a variety of structures and flavors that this could come together of course, we're focused on the structure that is going to maximize shareholder value. So.

Jason Les: So we don't prejudice any structure necessarily, but we're looking at the options and looking at what is going to get us the maximum value of our which we believe are scarce and invaluable. What we're doing, Nick, with the work we have going on right now is ensuring the ball moves forward. The fact that we are continuing to build on substation, bringing additional fiber to the site, to bring additional land, to bring in additional water, all of these things continue progress on the site. And it's really, you can think about it as advancing on what would be the powered shell stage of traditional development.

Speaker Change: Without prejudice any in any structure necessarily but we're looking at the options and looking at what is going to get us the maximum value of our assets, which we believe are scarce.

Speaker Change: And valuable what we're doing Nick with the work we have going on right now is ensuring the ball moves forward. The fact that we are continuing to build our substation, bringing additional fiber to the site to bring additional land to bringing in additional water. All of these things continued progress on the site and it's really you can think about it.

Speaker Change: <unk> on what would be the powered shelf space to collect sufficient development and doing this work. We think is making the overall off offering just more attractive as time goes on.

Jason Les: And doing this we think is making the overall offering just more attractive as time goes on. But the core of your question, you know, what does this mean for a development cost or those types of specifics, I think it's too early to say. Our focus is on making this as valuable as possible and ensuring we're as successful as possible when engaging with hyperscale.

Speaker Change: Core of your question.

Speaker Change: What does this mean for our development.

Speaker Change: Cost side of it.

Speaker Change: I think it's too early to say.

Speaker Change: Focus is on making this as valuable as possible and ensuring that we're successful as possible went into AG with hyperscale.

Nick Giles: Hey, fair enough.

Nick Giles: Well, again, congrats on the progress so far and continue to best Thank you. Thank you.

Speaker Change: Okay fair enough well again, congrats on the progress so far and continued best of luck.

Speaker Change: Thank you.

Operator: One moment for the next question.

Thank you one moment for the next question.

Operator: And our next question is coming from the line of Patrick Moley of Piper Sandler. Your line is open. Hey, how's it going?

Speaker Change: And our next question is coming from the line of Patrick Morley of Piper Sandler Your line is open.

Will Kops: This is Will Kops. I'm for Patrick. Thanks for taking my question.

Speaker Change: Hey, John This is <unk> on for Patrick Thanks for taking my question.

Jason Les: So since you all began looking at AI HPC opportunities, in your comments and conversations with potential tenants, have you sensed any tone shift or change in demand or change in potential decision making timelines or signed deal? Thanks. Yeah, well, I would say that demand continues to be robust, as it's ever been. And I think we're starting to see more commentary from other hyperscalers that reinforces that. So we've continued to be very encouraged by the feedback that we've received, not just from hyperscalers, but potential financing partners, which would be critical in this development as well. And everyone continues to recognize the value of power that can be delivered in the near term, in this case, we're talking about 2026.

Speaker Change: So since you all began looking at AI HBC opportunities.

Speaker Change: Your comments or conversations with potential tenants have you sensed.

Speaker Change: Any tone shift or change in demand or change in potential decision, making timelines.

Speaker Change: Or sign deal. Thanks.

Speaker Change: Yes, well I would say that demand continues to be robust.

Speaker Change: It's ever been and I think we're starting to see more commentary from other hyperscale that reinforces that so we've continued to be very encouraged by the feedback that we've received not just from hyper scaler, a potential financing partners, which will be critical in this development as well and everyone continues to recognize the value of <unk>.

Speaker Change: Power that can be delivered in the near term in this case, we're talking about 2026.

Jason Les: The fact remains, there's approximately five gigawatts of data center capacity being used for generative AI today. And the forecast is we're going to need about 30 gigawatts by 2030. So that's a pretty big delta to fill in a pretty short period of time. And as a result, we continue to see strong demand. There's been commentary, I believe on Meta's call yesterday about how they're increasing CapEx spend and commentary from other hyperscalers that they continue to be extremely focused on securing more data center capacity. So we're encouraged.

Speaker Change: Fact remains there is approximately five gigawatts of data center capacity being used for generative AI today and the forecast is we're going to need about 30 gigawatts by 2030, So that's a pretty big delta to feel to fill and a pretty short period of time.

Speaker Change: As a result, we continue to see strong demand. There has been commentary I believe are met his earnings call yesterday about how they are increasing capex spend in commentary from other a hyperscale or start day continue to be extremely focused on securing more data center capacity. So we're encouraged.

Jason Les: And then maybe the quick follow up, I mentioned financing partners. Can you give us an idea of what would project level financing for one of these deals look like? Would you tap into the Bitcoin treasury kind of like you were mentioned with the April production? Or what would that look like? Yeah, well, we will look at whatever is the value-maximizing option and whatever is going to give us the best cost of capital. That's what that decision comes down to. So I wouldn't preclude any option.

Speaker Change: And then maybe the quick follow up I know you mentioned financing partners can.

Speaker Change: Can you give us idea of what would project level financing for one of these deals look like would you.

Speaker Change: Tap into the big coin Treasury kind of like you mentioned with the April production or.

Speaker Change: And what would that look like.

Speaker Change: Yes, we are.

Speaker Change: We'll look at whatever is the value maximizing margin and whatever we gave us the best cost of capital decision.

Speaker Change: Decision comes down to yourself.

Speaker Change: Any option.

Jason Les: I think details of what a financing deal would look like would really be dependent on the off-taker terms. We're not, of course, at the level of discussing, we're not at the stage of discussing that level of detail yet, but we believe we're very well positioned on the financing sources with our advisors, Evercore and Northland. And we really think the quality of the tenant is going to, that we eventually would be able to secure, is going to positively influence the amount and the quality of financing options available to us. So that's why our focus remains on not just getting a deal in a binary sense, but going after blue chip, very strong counterparties where the market will value those cash flows and those cash flows can be secured.

Speaker Change: I think details of what our financing deal would look like would really be dependent on the off taker terms and we're not at the level of discussing manifest stage of discussing that level of detail yet, but we believe we're very well positioned on the.

Speaker Change: The financing sources.

Speaker Change: With our advisors ever Evercore Northland, and we really think the quality of the tenant is going to that.

Speaker Change: Eventually we'll be able to secure is going to positively influence the amount and the quality of financing options available to us. So thats why our focus remains on not just getting a deal at a binary.

Speaker Change: But going after blue chip very strong counterparties, where the market will value those cash flows and those cash flows can be securitized.

Will Kops: Thanks a lot, guys. Thank you.

Speaker Change: Thanks, a lot guys.

Speaker Change: Okay.

Operator: One moment for the next. And our next question will be coming from the line of Paul Golding of Macquarie. Your line is open.

Speaker Change: Thank you one moment to the next question.

And our next question will be coming from the line of Paul Golding of Macquarie. Your line is open.

Paul Golding: Thanks so much. Congrats on the efficiency approaching 90 percent.

Thanks, so much congrats on the efficiency.

Speaker Change: <unk>, 90%.

Paul Golding: I wanted to dive into some of the commentary around the HPC focus for this year.

Speaker Change: I wanted to dive into some of the commentary around the HTC focus for this year.

Paul Golding: To what extent is the vertical integration with PSS Metron something that has come up in discussions or that you see as being additive to timelines or ability to deliver on an HPC client's expectations?

Speaker Change: To what extent is the vertical integration with PSS Medtronic something that has come up in discussions or that you see as being additive to timelines or ability to deliver on HTC clients' expectations and then <unk>.

Paul Golding: And then secondly, just wanted to touch base on power across a couple items, one being backup generation. In the presentation, you noted on-site backup diesel generation.

Speaker Change: Secondly, just wanted to.

Speaker Change: Touch base on power across a couple of items, one being backup generation in the presentation.

You noted.

Speaker Change: On site backup diesel generation, just wanted to get a sense of some of those other long lead time items.

Jason Les: Just wanted to get a sense of some of those other long lead time items, how you're approaching that, how much is stocked or how you're looking at that. Thanks so much. Yeah, Paul.

Speaker Change: How you are approaching that.

Speaker Change: How much is stocked or how youre looking at that thanks, so much.

Jason Les: Thank you for the question on the vertical integration. We think this is a really important differentiator that Riot has. We have an electrical engineering and manufacturing division with ESS Metron that engineers and manufactures critical switchgear, and, by the way, manufactures it here in the United States, which is becoming increasingly important when you think about de-risking supply chains. But our recent acquisition of E4A also enhances our ability to do electrical work using the skill set that, as you can imagine, when everyone is doing these data center demands is very constrained and difficult to secure that type of expertise.

Paul: Yes, Paul.

Speaker Change: For the question on the vertical integration. We think this is a really important differentiator that Ryan has we have a electrical engineering and manufacturing division with DSS, Medtronic engineers and manufacturers critical switch gear and manufactured here in the United States, which is becoming increasingly important when you think about deep.

Speaker Change: Risking supply chains, but our recent acquisition of <unk> also enhances our ability to do electrical work.

Speaker Change: The skill set as you can imagine when everyone is getting these data center demand.

Speaker Change: Very constrained and difficult to secure that type of expertise I'll also add that <unk> does a considerable amount of work in generation. So they can be very helpful. On the backup generation side. So feedback that we've gotten broadly from counterparties from those who have been evaluating the opportunity they have.

Jason Les: I'll also add that E4A does a considerable amount of work in generation, so they can be very helpful on the backup generation side. So feedback that we've gotten broadly from counterparties and from those who have been evaluating the opportunity, they have been positively, I'd say, inclined around the fact that we have this differentiating capability. On the generator side, as I touched on, that's something that our engineering division has an expertise and does on a regular basis for counterparties, so we think we come well-positioned there and we'll have good insights into that supply chain. We don't have any commentary on what we secured or when we will secure backup generation and the lead time on that yet, but that is a key component, so that's something that we'll be paying close attention to in order to be aggressive on delivery time on that.

Speaker Change: Positively obtaining inclined around the fact that we have this differentiated capability.

Speaker Change: On the general generator side as I touched on that's something that our engineering division hasnt expertise than it does on a regular basis and are already so we think we come well positioned there and we'll have good.

Speaker Change: Insights into that supply chain.

Speaker Change: Don't have any commentary on when we secure when we will secure backup generation of lead time on that yet but that is a key component. So that's something that we'll be paying close attention to in order to be aggressive on time delivery timelines.

Paul Golding: Thanks, Jason.

Jason Les: If I could just squeeze one housekeeping question in here as well. I see in the presentation that you have a one gigawatt approved, obviously, that's the entirety of the current Corsicana site, and then pass to HPC fully contracted one gigawatt as well, presumably, that's adding 400, not reallocating some Bitcoin mining power. Is that correct? What we're trying to show on that slide is that we have one gigawatt of... 400 megawatts is currently being utilized for Bitcoin mining and 600 megawatts is available for a AIHTC data center deal. Now, however, if economics are attractive and things develop on the line, you know, the whole one gigawatt is potentially on the table.

Speaker Change: Thanks, Jason if I could just squeeze one housekeeping question in here as well I see in the presentation that you have.

Speaker Change: One gigawatt approved obviously, that's the entirety of the current Corsicana site and then path to HTC.

Speaker Change: Fully.

Speaker Change: Contracted one gigawatt as well, presumably that's adding 400 not a.

Speaker Change: Reallocating some bitcoin mining.

Speaker Change: Power is that correct.

Speaker Change: Yes.

Speaker Change: We're trying to show on that slide is that we have.

Speaker Change: One gigawatt improved 400 megawatts is currently being utilized for bitcoin mining and 600 megawatts is available for AIG to see data center deal.

Speaker Change: However, economics are attractive things develop.

Speaker Change: On the line a whole one gigawatt potentially on the table, but the focus is just maximizing the value of that asset overall.

Jason Les: The focus is, you know, just maximizing the value of that asset overall.

Paul Golding: Great, thanks so much. Thank you.

Speaker Change: Great. Thanks, so much Jason.

Speaker Change: Thank you.

Operator: One moment for the next question. And the next question is coming from the line of Ben Somers.

Speaker Change: Thank you one moment for the next question.

Speaker Change: And the next question is coming from the line of Ben Summers.

Ben Somers: of BTIG, your line is open.

Speaker Change: Of <unk> your line is open.

Ben Somers: Hey, guys, good afternoon. Thanks for taking my questions. So first on the recent I got to get up to taking my questions on the recent $100 million I'm just kind of curious why now for this and how are we thinking about the capital strategy moving forward.

Ben Summers: Hey, guys. Good afternoon. Thanks for taking my questions. So first on the <unk>.

Ben Summers: Hey, guys. Good afternoon. Thanks for taking my questions on the reset of $100 million credit facility with Coinbase, just kind of curious why now for this and how are we thinking about the capital strategy moving forward here.

Jason Chung: Let me turn that over to Jason Chung. Sure. Thanks, Jason. Thanks for the question. I think our financing activities this quarter give a good sense of how we're thinking about all the different financing options that we have available to us. we saw extremely limited use of the ATM and therefore very minimal dilution to our shareholders. When we did issue into the ATM, we achieved an average share price of $13.05 per share. So we feel pretty good about our timing when we did utilize the ATM on a limited basis. But in addition to that, we took two other steps.

Jason Zhang: Ill turn that over to Jason Zhang.

Ben Summers: Sure. Thanks, Jason Thanks for the question.

Speaker Change: I think our financing activities this quarter give a good sense of how we're thinking about all the different financing options that we have available to us.

Speaker Change: So we saw extremely limited use of the ATM and therefore very minimal dilution to our shareholders.

Speaker Change: When we did.

Speaker Change: Issuing through the ATM, we achieved an average share price of $13 five per share. So we feel pretty good about our timing when we did utilize the ATM on the on a limited basis, but.

Speaker Change: In addition to that we took two other steps right in April we started selling our monthly bitcoin production as well for raising additional funds outlay.

Jason Chung: In April, we started selling our monthly Bitcoin production as well, raising additional funds that way. And now with the Coinbase facility, we've opened up another avenue of financing for us that again, sidesteps the ATM. So as we see weak valuations in the market at the moment, we've been very actively exploring these alternate financing options and will continue to aggressively pursue other options in the market as they're available. That comes within the constraint on the debt side, on the leverage side, as we previously mentioned of targeting no more than 40% debt to Bitcoin on our balance sheet to maintain what we feel is a fairly comfortable sort of margin of safety on that.

Speaker Change: And now with Coinbase facility.

Speaker Change: Opens up another avenue of financing for us.

Speaker Change: Again sidesteps the ATM, so as we see kind of weak valuations in the market at the moment, we have been very actively exploring alternative financing options and we.

Speaker Change: We will continue to aggressively pursue other options in the market as they are available.

Speaker Change: That comes within the constraint on the debt side on the leverage side as we previously mentioned of.

Speaker Change: Targeting no more than 40% debt to bitcoin.

Speaker Change: On our balance sheet to maintain what we feel fairly comfortable sort of margin of safety on that.

Ben Somers: Awesome. Thank you.

Ben Somers: Then my follow up.

Speaker Change: Awesome. Thank you then my follow up so kind of on the topic of global Ash any color on how you think about global has trending in the current tariff environment and kind of can this open up any opportunities for you guys to increase market share with 25 or beyond there.

Jason Les: So kind of on the topic of global hash, any color and how you think about global hash trending and the current tariff environment, and kind of can this open up any opportunities for you guys to increase market share, whether in 25 or beyond there? Yeah, Ben, I think tariffs will generally impact a fair amount of miners' growth plans. And I think we're already seeing some commentary from different miners on how they're re-evaluating their hash rate growth forecast. Riot is in a good position for a number of years now, dating back to 2023, when we entered into a long-term miner purchase agreement with out of their U.S.

Speaker Change: Yeah, Ben I think tariffs are all generally impact.

Speaker Change: Paramount a minor growth plans and I think we're already seeing some commentary from different miners.

Speaker Change: How they're reevaluating their high shrink growth forecast right is in a good position for a number of years now dating back to 2023 and when we entered into a long term minor purchase agreement with Micron <unk> out of the U S production.

Jason Les: production facilities. That's really helped insulate us from tariffs, at least for growth plans in 2025 for hash rate so far. So I think the opportunity for Riot is that is with it being more expensive to perhaps grow Bitcoin mining operations, global network cash rate may not grow as quickly towards the end of the year. Assuming the Bitcoin price remains where it is, of course, if the price goes up, that would probably incentivize more development. So I think with where Riot is today and the development that we have going on, we get a good market share from where we're at and our low cost operations will ensure that we continue to have a healthy margin through any volatility in cash.

Speaker Change: Facilities, that's really helped insulate us from Paris at least for our growth plans in 2025 for harsh rate. So far so I think the opportunity for riot is that.

Speaker Change: Would it be more expensive.

Speaker Change: Grow victory mining operations Global network cash rate may not grow as quickly towards the end of the year.

Speaker Change: Assuming the bitcoin price remains where it is of course, if the price goes up that would probably incentivize more development. So I think with where it is today and the development that we have.

Speaker Change: One on <unk>.

Speaker Change: We get a good market share from where we're at and our low cost operations will ensure that we continue to have a healthy margin through any volatility in hedge price.

Ben Somers: Thanks for taking my questions. Thank you.

Speaker Change: Okay.

Speaker Change: Thanks, Sharon Thanks for taking my questions.

Operator: One moment for the next question. And the next question will be coming from the line of Darren Aftahi of Roth, your line is open. Hey guys, thanks for taking my questions. First one, if I may, just, Jason, you talked about there's a lot of moving parts here with acquiring more land, kind of expanding your water capabilities and then redundant fiber.

Speaker Change: Thank you one moment to the next question.

Speaker Change: And our next question will be coming from the line of Darren <unk> of Roth. Your line is open.

Speaker Change: Hey, guys. Thanks for taking my questions.

Speaker Change: One if I may.

Speaker Change: Jason you talked about there's a lot of moving parts here with acquiring more land.

Speaker Change: Expanding their water capabilities in them.

Darren Aftahi: So I guess first question is just around, once you get the substation in the existing pad you have in the deck, like what's the capacity theoretically for HPC there? And then I guess, what steps have to be taken to kind of make that other piece of land that you're in the process of acquiring kind of usable and what's kind of the timeline we can think about in terms of phases theoretically? And I guess, how is that kind of dovetailing into kind of lease discussions? Thanks. Yeah, so there's a number of development strategies that you can take with the amount of land that's available there.

Speaker Change: Done with fiber. So I guess first question was around once you get the substation in the existing <unk>.

Pat: Pat do you have in the deck.

Pat: Like what's the capacity theoretically for HBC, there and then I guess, what steps have to be taken to kind of make that other piece of land that you are in the process.

Pat: Acquiring.

Pat: Usable and what's kind of a timeline, we can think about in terms of stages theoretically and I guess, how is that kind of dovetailing into kind of lease discussions. Thanks.

Pat: Yeah. So there's a number of development strategies that you can take.

Pat: With the amount of land.

Jason Les: You can get, you know, very aggressive on density. The trade-off could be higher cost and potential limitations on future proofing of the design, or, you know, the reason that we are procuring more land is the more footprint you have available, just the more development options that you have. So the fact that we have a substation that's coming on and a development pad that's already completed makes conversations really helpful with potential tenants, hyperscalers, because this isn't a greenfield exercise for a first phase. You can begin on a first phase and, you know, work on additional phases in parallel.

Pat: That's available that you can get very aggressive on density.

Pat: The trade off of it could be higher cost and potential limitations on future proofing of the design or.

Pat: The reason that we are procuring more land is the more footprint you have available just some more development options that you have so the fact that we have a substation that is coming on and a development path. That's already completed makes conversations really helpful with potential tenants hyper scaler, because this isn't a greenfield exercise.

Pat: As for our first phase you can begin on a per space and work on additional phases in parallel.

Jason Les: The main thing we would need to do to get those additional phases ready would be some civil work. We're not acquiring just development pads there. There would need to be civil work done to get those sites ready for development, as well as some electrical work. But I think, you know, typically, from what we've seen in the market, Large players, large tenants are looking for multiple-phase developments, and the fact that we can get started with one right away and then being able to continue from additional phases in parallel in the future makes the offering possible. So, you know, we don't have, like, strong guidance on what I can tell you what's possible on that site, on that footprint.

Pat: The main thing we would need to do to get those additional phases ready would be some civil work, we're not acquiring just development pads there they will need to be civil work done to get those sites ready for development as well as some electrical work but.

Pat: I think.

Pat: Typically.

Pat: From what we've seen in the market.

Pat: Large players large tenants are looking for multiple phase development and the fact that we can get started with one right away and then being able to continue.

Pat: Continue.

Pat: From additional phases in parallel in the future makes the offering possible.

Pat: Don't have strong guidance on what I can tell you possible on that site.

Jason Les: You know, I think something in the range of 100 to 200 megawatts of critical IT load, depending on that tenant's preference, can be done there. But, you know, with higher expense, higher capital expense, you could get higher density there. The name of the game for us is Proving the optionality of the site, making it as successful a position as possible when we're engaging with hyperscalers.

Pat: Print I think something in the range of 100 to 200 megawatts of critical it load depending on that kind of prep.

Pat: Preference can be done there.

Pat: With higher expense higher capital expense, you could get a higher density there.

Pat: The name of the game for Us.

Pat: Improving the optionality of the site, making it making.

Pat: A successful position as possible when we're engaging with hyperscale.

Jason Les: Great. And if I could squeeze one more in, just with the rhodium building, what's the feasibility that that could be used for something other than Bitcoin? And I guess what's the decision process between potentially retrofitting that 125 for HPC or actually using existing capacity at your course of Canada that you just built? Well, I think, you know, it's too early to tell exactly what we're going to do with the assets and the power capacity that we acquire. We want to choose the value-maximizing approach with these assets. The fact that there's part of a substation that's already been built means that, you know, this could potentially work for an AIHPC data center development as well.

Pat: Great and then if I could squeeze one more.

Pat: Just with the rhodium building.

Pat: What's the feasibility of it that could be used for something other than bitcoin and I guess, what's the decision process between.

Pat: Potentially retrofitting that $1 25 for HBC are actually using existing capacity of course, but we just felt thanks.

Pat: Well I think.

Pat: It's too early to tell exactly what we're going to do with the assets and the power capacity that we acquire we want to choose the value maximizing approach.

Pat: Yes.

Pat: And as part of the substation has already been built means that this could potentially.

Pat: Work for NII, HBC datacenter development as well it doesn't have always think all of these as a corsicana, which is why we're most focused on.

Jason Les: It's going to have all the same qualities as Corsicana, which is why we're most focused on Corsicana. But what we get that's really valuable with this acquisition is we eliminate the ongoing hosting loss, we eliminate the ongoing litigation loss, and we get a meaningful amount of power that we can decide what to do with. So like I said, we're going to choose the value-maximizing approach with that capacity.

Pat: Most focus on corsicana.

Pat: While we get that's really valuable with this acquisition is.

Pat: We get we eliminate the ongoing dose two loss, we eliminate the ongoing litigation loss and we get a meaningful amount of power that we can decide what to do with so I guess that we're going to choose the value maximizing approach with that capacity.

Jason Les: More specifically, to address your question, Darren, I don't think we would retrofit that building for AIHPC, but we have land available around there. We have the potential to build, you know, a data center development or building around there to just use the power that's already available, if that's the path we chose. Still too early to say.

Speaker Change: More specifically to address your question Darren I don't think were retrofit that building for AIA HBC, but we have land available around there.

Pat: Without the potential to build.

Pat: Data Center development are building around they're just used to power thats already available if that's the path we chose still too early to say.

Reggie Smith: John Paul, thank you. And the next question's coming from the line of Reggie Smith of J.P. Morgan.

Speaker Change: Helpful. Thank you.

Pat: Okay.

Pat: Thank you one moment to the next question.

Speaker Change: And the next question is coming from the line of Reggie Smith of Jpmorgan. Your line is open.

Reggie Smith: Your line is open. Hey, thank you.

Reggie Smith: Alright, thank you.

Reggie Smith: So two questions for me. The first, I know you talked about tariffs, and I think you were referring to ACIP prices. I was curious if there's any exposure on the power infrastructure side to higher tariffs, and I got a follow up. Yeah, so Reggie, good question. So on the power infrastructure side, it can kind of depend on the component, right? So when you're looking at at least like the switchgear side, and what components like our engineering division produce, they produce those domestically. So at least, you know, purchasing from the OEM would not be subject to tariffs.

Speaker Change: So two questions from me Firstly, I know you talked about tariffs and I think you were referring to AC prices I was curious if theres any exposure on the power infrastructure side.

To higher tariffs and I've got a follow up thank you.

Speaker Change: Yes, so rajeev good question, so on the power infrastructure side.

Speaker Change: Kind of depend on the component right. So when youre looking at.

Speaker Change: Switch gear side.

Speaker Change: What components like our engineering Division produced they produced those domestically so at least.

Speaker Change: <unk> seen from the OEM I would not be subject to tariffs.

Jason Les: They have their own components that they source to put these. To put this equipment together though, and it's such a fluid situation with tariffs, it really is changing in the views, ideas are changing on a day-to-day basis. too early to say what it would impact, how it would impact our engineering division and their components. But more broader from other suppliers of electrical infrastructure, in particular if you're talking about high voltage transformers, it would of course impact the cost of transformers that would be produced in China or other electrical equipment that would come from China. So we're seeing a lot of things happen all over the marketplace.

Speaker Change: Their own components would be sourced to put these.

Speaker Change: To put this equipment together, though and it's such a fluid situation with tariffs.

Speaker Change: It really is changing and the views ideas or change on a day to day basis.

Speaker Change: Too early to say, what it would impact.

Speaker Change: How it would impact our engineering division and their components, but more broader from other suppliers of electrical infrastructure in particular that you're talking about high voltage transformers.

Speaker Change: It would of course impact the cost of Transformers that would be produced in China or other electrical equipment that would come from China. So we're seeing a lot of things happening all over the marketplace, we're staying really close to it.

Jason Les: We're staying really close to it. Too early to say what the overall impact would be. Understood. Got it.

Speaker Change: Too early to say, what the overall impact would be.

Reggie Smith: And then this may be a tough question to answer. But I'm thinking about, you know, milestones along the path, more client facing milestones on the HPC side. And so as we think about the next 12 months or so, like, what are some things we should look for to kind of let us know that you guys are kind of moving the ball down the field? Yeah. Obviously you don't have to give me any dates, but what type of announcements should we be looking for or thinking about? Yeah, that's a good question, Reggie. I think you'll see us continuing to work at building internal team to optimize our success here.

Speaker Change: Understood.

Speaker Change: Got it and then maybe a tough question to answer, but I'm thinking about <unk>.

Speaker Change: Milestones along the path.

Speaker Change: More client facing milestones on the HCC side and so as we think about the next 12 months or so what are some things we should look for to kind of let us know that you guys are kind of moving the ball down the field.

Speaker Change: Obviously that you'd have to give me any dates but like what type of announcements soon.

Speaker Change: Should we be looking for.

Speaker Change: We're thinking about.

Speaker Change: Yes, that's a good question Rajeev I think youll see us.

Speaker Change: Continuing to work at building internal team to optimize our success here that doesn't necessarily mean that we won't be building something like this on our own building internal expertise with augment and support our ability to be successful in a JV type of structure as well. So we're going to continue to work on building that.

Jason Les: That doesn't necessarily mean that we would be building something like this on our own. Building internal expertise would augment and support our ability to be successful in a JV type of structure as well. So we're going to continue to work on building that team. We are working on completing a basis of design for what a potential data center would look like. That way, we have something more concrete that we can have discussions around. We think that would be very helpful. And, of course, the ultimate milestone finish line would be securing a lease at a tenant.

Speaker Change: Team.

Speaker Change: We are working on completing our basis of design for what a potential data center would look like that way, we have something more concrete that we can have discussions around we think that would be very helpful and of course the ultimate.

Speaker Change: Milestone finish line will be securing at least at a tenant and.

Jason Les: And, you know, they would ultimately have the requirements on what a design work would look like. So, you know, we would work collaboratively with them on what that design would be. And in addition, also, you know, financing would be an important milestone along the way there. So we are really focused on this. We strongly believe in the opportunity here. And we think there is a great opportunity for Riot to build a AI HPC data center business. And that's our priority. And I think we are in a very good position to be successful at doing that.

Speaker Change: They would ultimately.

Speaker Change: We.

Speaker Change: Have the requirements on what a design work will look like so we would work collaboratively with them on what that design would be and then also financing would be an important milestone along the way there so.

Speaker Change: We are really focused on this.

Speaker Change: We strongly believe in the opportunity here and we think Theres a great opportunity for riot to build a AIA HBC datacenter business and that's our priority and I think we are in a very good position to be successful in doing so.

Reggie Smith: That makes a lot of sense.

Speaker Change: That makes sense.

Reggie Smith: I'm not sure if you can, if there is anything else that would happen, but related to that, that tenant agreement, is there are there any, you know, kind of milestones there that may precipitate a deal or precede a deal that we may look for? I don't know if it's a, it's a solution negotiating window, like, what typically happens there? Or is it just that, you know, a lease is announced with no forewarning from the from market perspective? Reggie, I think you'd probably see some commentary around an LOI before a lease takes place. A lease in this type of arrangement, it's a pretty big undertaking, and it's typically preceded by the two parties entering into an LOI.

Speaker Change: Sure. If you can if there is anything else that would happen but related to bet that tenant agreement is there are there any.

Speaker Change: Kind of milestones there that may.

Speaker Change: Precipitated deal or a proceed of deal that we may look for I don't know if its.

Speaker Change: Exclusive negotiating window.

Speaker Change: What typically happens there or is it just that.

Speaker Change: Recent analysis no four warning from the from a market perspective.

Speaker Change: Richie I think you'd probably see some commentary around an LOI or lease takes place.

Speaker Change: No.

Speaker Change: And this type of arrangement, it's a pretty big undertaking and it's typically preceded by the two parties entered into an LOI what the terms around that LOI are I can't say right now, but that would probably be a first step that you see before lease.

Reggie Smith: What the terms around that LOI are, I can't say right now, but that would probably be a first step that you see before a lease. Okay, that makes sense. Perfect.

Speaker Change: Got it okay that makes sense perfect. Thank you guys.

Reggie Smith: Thank you, guys.

Operator: Thank you. One moment for the next.

Speaker Change: Thank you thank.

Speaker Change: Thank you one moment for the next question.

Bill Papanastasiou: The next question is coming from the line of Bill Papanastasiou of KBW, your line is Good evening. Thanks for taking my questions, gentlemen. For the first one I was hoping you could provide some more color on how you expect Cash OpEx to trend following the settlement with Rhodium. Is that $27 to $30 million target for quarterly SG&A still in play or could we expect that to come even lower in the second half of 2025 now that that settlement has finalized? So Bill, our guidance on run rate SG&A for 2025 was 30 to 33 million per quarter.

Speaker Change: The next question is coming from the line of Bill Popper and ask the idle.

Speaker Change: K B definitely your line is open.

Speaker Change: Good evening, Thanks for taking my questions gentlemen.

Speaker Change: For the first one which.

Speaker Change: I was just hoping you could provide some more color on how you expect cash opex to trend following the settlement with rhodium.

Speaker Change: Is that 27% to $30 million target for.

Speaker Change: Quarterly SG&A is still in play or could we expect that to come even lower in the second half of 2025 now that that settlement is finalized.

Speaker Change: So bill.

Speaker Change: Our guidance on run rate SG&A for.

Speaker Change: For 2025 was $30 million to $33 million per quarter now that does not include these one off non run rate expenses like youre asking about like litigation expenses, it's really just so difficult to predict those.

Colin Yee: Now that does not include these one-off non run rate expenses like you're asking about like litigation expenses. It's really just so difficult to predict those. Those come so lumpy and different milestones come up. You know, for example, this this quarter all of a sudden working on an acquisition and limit agreement with Rhodium in the midst of a bankruptcy process they had underway. That's not something we could have forecasted 12 months ago but suddenly, you know, a bunch of expenses are incurred around that. So we feel good about our guidance on 30 to 30 million run rate SG&A, a cash SG&A, so the expenses that are quarter running our business.

Speaker Change: So lumpy and different milestones come up for example.

Speaker Change: This quarter all of a sudden working on an acquisition and settlement agreement with rhodium.

Speaker Change: In the midst of a bankruptcy process they had under underway.

Speaker Change: It's not something we could have forecasted 12 months ago, but suddenly a bunch of expenses are incurred around that so we feel good about our guidance on 30% to $30 million run rate SG&A, our cash SG&A. So the expenses that are core to running our business litigation or any type of special advisory fees. That's more unpredictable, we still do have.

Colin Yee: Litigation or any type of special advisory fees, that's more unpredictable. We still do have active litigation with one of the former hosting customers, GMO, and we very likely will we will incur litigation expenses on that but it's very difficult to predict so we can't provide guidance around that right now.

Speaker Change: Active litigation with <unk>.

Speaker Change: The former hosting customers GMO and.

Speaker Change: Very likely we will incur litigation expenses on that but it's very difficult to predict so.

Speaker Change: We can't provide guidance around that right now.

Bill Papanastasiou: Appreciate that caller and apologies, I got that that target number incorrect.

Speaker Change: I appreciate that color and apologies I got that target number and correct.

Colin Yee: In the last earnings call, it was mentioned that you guys were analyzing all sorts of deal structure options in order to maximize shareholder value. Has your assessment of these options changed since the last update and have you been able to narrow down that selection further? Harry Tompkins Yeah, so as you noted, Bill, we're most inclined to the options that's going to maximize the value of our assets. And from that perspective, we are narrowing down, narrowing in on a bill to suit data center being our optimal path. We believe that We that that type of structure can take all sorts of flavors from us.

Speaker Change: In the last earnings call. It was mentioned that you guys were analyzing all sorts of deal structure options in order to maximize shareholder value.

Speaker Change: Is your assessment of these options changed since the last update in August.

Speaker Change: April to narrow down on collection further.

Speaker Change: How are you.

Speaker Change: Yes, so as you noted bill where most inclined to the options thats going to maximize the value of our assets.

Speaker Change: And from that perspective, we are narrowing down nearing in on a build to suit data center, bringing our optimal path.

Speaker Change: We believe.

Speaker Change: That.

Speaker Change: Yes.

Speaker Change: That type of structure can take all sorts of flavors from.

Speaker Change: Us.

Speaker Change: Solely social self performing in developing that.

Speaker Change: Highly reliant on the JV.

Speaker Change: Development partner or kind of somewhere in between and any one of those scenarios, though our financing partners critical that's an area, where our advisors Evercore Northland has been especially helpful. And we've received strong interest from potential financing partners because of the.

Colin Yee: Thank you and the rest of the team. The goal of the project is to provide a high-quality solution that would involve greater internal capabilities than what we entered 2025 with. But we are rapidly assembling a data center team and we are bringing upgraded capabilities to the table for more serious discussions. All that being said, if there is a world where another structure or option, such as doing a powered shell or doing leased land, maximizes value, we are very open to that. But that's not what we're seeing in the marketplace today. So what we're trying to do is maximize our ability to be successful with a built-to-suit data center option while keeping an eye on any potential deal structures and keeping an open-minded approach.

Speaker Change: The quality of.

Speaker Change: I would evolve greater internal internal capabilities than what we entered 2025 with but we are rapidly assembling the data center team and we are bringing upgraded capabilities to the table are more serious discussions all of that being said if there is a world where another structure our option such as doing a powered shell.

Speaker Change: Doing lease land maximizes value, we're very open to that but that's not what we're seeing in the marketplace. Today. So what we're trying to do is maximize our ability to be successful with a build to suit data center option, while keeping an eye on any potential deal structures and keeping an open minded approach.

Bill Papanastasiou: Appreciate the colors. Thank you. One moment for the next.

Speaker Change: I appreciate the color. Thank you.

Speaker Change: Thank you one moment for the next question and our next question will be coming from the line.

Operator: And our next question will be coming from the line.

Martin Toner: of Martin Toner of ATB Capital Markets. Your line is open. Thank you for taking the question. Is there now that you are being more flexible with respect to the way you raise capital. Is there a way we should think about like the range around which you guys will choose to hold mine Bitcoin going forward? Martin, I think the way that we're thinking about it is we're in a great position where we've created, we've put ourselves in a position where we have lots of leverage for financing all the time. We have the ability to run an ATM.

Martin Toner: Martin Toner.

Speaker Change: ATB capital markets. Your line is open.

Speaker Change: Thank you for taking the question.

Speaker Change: Is there now that you are.

Speaker Change: Being more flexible with respect to.

Speaker Change: The way you raise capital.

Speaker Change: The way, we should think about the range.

Speaker Change: Around which you guys will.

Speaker Change: Choose to hold mine going forward.

Martin Toner: Martin I think the way that we're thinking about it is we're.

Martin Toner: We're in a great position, where we've created we've put ourselves in a position where we have lots of levers for financing all the time, we have the ability to run the ATM, we have a large bitcoin balance.

Jason Les: We have a large Bitcoin balance. With the Coinbase facility demonstrated, we can make it a very low-risk vehicle to borrow against that balance. We're working on other types of financing options as well. As you noted, we can sell out of our monthly production and still maintain a very strong Bitcoin balance. So the way we look at it, Martin, is we're looking at our capital needs, and we're trying to choose the lowest cost capital, least dilutive option at any time. And in the recent month, that was selling our monthly production. We may continue to do that in upcoming months, but it's something that we evaluate on an ongoing basis, and we're just always looking at what our best position is amongst all the options that we have.

Martin Toner: We with the Columbia facility demonstrated that we can.

Low risk.

Martin Toner: Vehicle to borrow against that balance.

Martin Toner: We're working on other types of financing options as well as you noted we can spell out our monthly production and still maintain a very strong <unk>. So the way we look at it is we're looking at our capital needs and were trying to choose the lowest cost of capital at least dilutive option any time and in the recent months.

Martin Toner: That was selling our Montana for production.

Martin Toner: We may continue to do that in upcoming months, but it's something that we evaluate and ultimately pacer.

Martin Toner: We're just always looking at what our best positioned amongst all the options that we have.

Martin Toner: We're grateful to be in the position we have this many lovers to choose from every day. makes sense. Thanks.

Martin Toner: We are grateful to be in the position we have as many levers to choose from every day.

Martin Toner: Makes sense. Thanks.

Martin Toner: Alright.

Jason Les: this nearby Corsicana. I'm assuming that we'll need to go through like the regular typical, like a process before you guys can start holding. No, there's no regulatory process. We already have the power approved at our location. Us buying additional land is a very simple land acquisition, and that just gives us additional land on which to use the power from our existing FBA. it's completely, it's perfectly fungible with the existing assets that are already approved. Yes. Awesome, thanks. Thank you.

Speaker Change: This nearby of course, the Canada, I'm, assuming that would need to go through like the ratio.

Martin Toner: The typical like.

Martin Toner: Thank you.

Martin Toner: Before you guys can hurt.

Martin Toner: Okay.

Martin Toner: No Theres no regulatory process, we already have the power per location.

Martin Toner: Buying additional land in a very simple land acquisition and that just.

Martin Toner: It gives us additional add on my.

Martin Toner: What's the use of power from our existing FDA.

Martin Toner: It's.

Martin Toner: Perfectly fungible with the existing assets that are already approved.

Martin Toner: Yes.

Martin Toner: Awesome. Thanks.

Martin Toner: Okay.

Martin Toner: Okay.

Operator: One moment for the next question.

Martin Toner: One moment for the next question and.

Mark Grandall: And our next question will be coming from the line of Mark Grandall of Northland Capital. Your line is open. Hey, guys, thanks.

Speaker Change: And our next question will be coming from the line of Mark Grantor of Northland Capital. Your line is open.

Speaker Change: Hey, guys. Thanks.

Mark Grandall: Um, in your discussion with potential tenant Any interesting or helpful feedback you're getting from them? on the Corsicana site. And then as a follow up to that, at this point, does any one or two potential tenants stick out? Or is it kind of a wide open contest? You know, starting with your second question, Mike, there are a number of hyperscalers and even large companies beyond hyperscalers that are in high need of power data center capacity to meet their growth targets. So I would say, especially because of the location of our site that allows it to be used for generative AI training, inference, or cloud applications being 60 miles away from Dallas, a tier one data center, there's a lot of different things you can do with that site.

Speaker Change: Your discussion with potential tenants.

Speaker Change: Interesting are helpful feedback youre getting from them.

Speaker Change: On the course of the Kansas site.

Speaker Change: And then as a follow up to that.

Speaker Change: At this point does any one or two potential tenants stick out or is it kind of wide open contest right now.

Speaker Change: Starting with your second question Mike.

Speaker Change: There are a number of hyperscale and even large companies got hyper scalar that are.

Speaker Change: In high need power data center capacity to meet their growth targets, So I would say.

Speaker Change: Especially because of the location of our site that allows it to be used for generative AI training inference or clients holiday party client applications being 60 miles away from Dallas, a tier one data center, there's a lot of different things you can do at that site. So RV.

Jason Les: So, you know, our view is the hyperscaler landscape, and beyond that, our potential tenants for the Corsicana facility. As far as feedback, Feedback from our advisors has matched really what we've gotten from tenants, and that's why we've been working on improving the land, adding water, and additional fiber connectivity. These weren't things that were holding us back, but we've gotten feedback on what we can do to make the offering more compelling and put ourselves in the best position possible to be successful. So we have a great site. It is in a very good position as it is, and what we've just been working on in parallel with having these conversations is doing different things to enhance the overall offering and put ourselves in the best position to be successful.

Speaker Change: Our view is the whole hyperscale or landscape and beyond that are potential tenants in.

Speaker Change: Over the course of Canada facility.

Speaker Change: As far as feedback.

Speaker Change: Sure.

Speaker Change: Feedback from our advisors has matched really what we've gone from tenants and that's why we've been working on improving the land.

Speaker Change: Adding why adding water and additional fiber connectivity fees.

Speaker Change: Weren't things that we are holding us back, but we've gotten feedback on what we can do to make the offering more compelling and put ourselves in the best position possible to be successful. So we have a great site is in a very good position.

Speaker Change: And what we've just been working on in parallel we're having these conversations is doing different things to enhance the overall offering and put ourselves in the best position to be successful.

Jason Les: Got it. Thank you. That's helpful. Thank you. One moment for the next question.

Speaker Change: Got it. Thank you that's helpful.

Speaker Change: Okay.

Speaker Change: Thank you one moment for the next question.

Brian Dobson: That next question is coming from the line of Brian Dobson of Clearwater. Your line is open. Hi, thanks so much for taking my question. I was wondering if you could comment and give us a little bit of color on what you're seeing as the core driver of the semi-recent uptick in global hash. Can you perhaps opine on where that's coming from, which regions of the globe, and if you think it's sustainable? It certainly appears that way.

Speaker Change: The next question is coming from the line of Brian Johnson of Clearwater. Your line is open.

Speaker Change: Okay.

Brian Johnson: Hi, Thanks, so much for taking my question.

Brian Johnson: I was wondering if you could comment and give us a little bit of color on what Youre seeing is the core driver.

Brian Johnson: Call It semi recent uptake uptick in global hash key.

Brian Johnson: Can you, perhaps opine on where that's coming from which regions of the globe and if you think it's sustainable certainly appears that way.

Jason Les: Yeah, Brian, it's a good question. You know, there's always a lag between when hash rate is getting deployed relative to market signals. So here we are now on May 1. And it was, you know, about six months ago when Bitcoin really started taking off, leading up to and then after the election. So for miners who saw that increase in hash price then and wanted to act on it, their hash rate is coming on now. I think we're seeing global advancement in hash rate. You know, I don't have any particular area that I could tell you is a particular global hotbed.

Brian Johnson: Yes, Brian it's a good question.

Brian: Theres always a lag between when hatch rate is getting deployed relative to market signals. So here. We are now on may one.

Brian Johnson: And it was.

Brian Johnson: Six months ago, when bitcoin really started taking off leading up to and then after the election. So for minors, who saw that increase in cash price then and wanted to act on it Theyre Tartrate is coming on now I think we're seeing global events and attach rate.

Brian Johnson: I don't have any particular area, but I can tell you.

Brian Johnson: Our global hotbed.

Jason Les: But there remains to be, I think, robust continued growth here in the United States. A number of our publicly traded peers are still under some accomplished significant hash rate growth this year and have more underway. So it seemed to me that the publicly traded Bitcoin miners continue to contribute to a lot of the Yeah, certainly.

Brian Johnson: It remains to be I think robust continued growth here in United States at a number of our publicly traded peers are still under sub accomplished a significant hash rate growth this year and have more underway.

Brian Johnson: It seemed to me that the public traded pikmin miners continue to contribute to a lot of the global harsh rate growth.

Brian Dobson: Thanks very much for that color. I mean, we're hearing that there are some pockets globally that are that are pushing that forward. So we appreciate it. Thanks very much. Thank you.

Brian Johnson: Yes, certainly thanks very much for that color.

Brian Johnson: We're hearing that there are some pockets globally, but are they are pushing it forward. So we appreciate it thanks very much.

Joe Flynn: One moment for the next question. And the next question is coming from the line of Joe Flynn of Compass Point Research. Your line is open. I was hoping maybe you'd expand on the initial development you're doing at the site. You kind of touched on it, but specifically was, you know, adding a firewall and customer directed, and ultimately kind of what that process entails. Outsourcing to OpticsPrior and any... Completion Timelines. Yeah, Joe, good question. It was not a request from a potential tenant. It was just something that we've identified in the process that adding that would enhance our ability to sign a lease quicker and be able to have a data center fully utilized on that site quicker.

Brian Johnson: Thank you one moment to the next question.

Speaker Change: And the next question is coming from the line of Joe Flynn of Compass Point Research. Your line is open.

Joe Flynn: Hi, guys I was hoping maybe you could just expand on the initial development you are doing at the site.

Speaker Change: Could you kind of touched on it but specifically was.

Speaker Change: Adding a fiber lines customer directed and ultimately kind of what that.

Speaker Change: Process entails.

Speaker Change: Outsourcing to Opex supplier.

Speaker Change: Completion.

Speaker Change: Completion time lines would be helpful.

Speaker Change: Yes, Joe Good question. It was not a request from a potential tenant. It was just something that we've identified in our process not adding that would enhance our ability to sign.

Speaker Change: <unk> quicker and get a b.

Speaker Change: To be able to have a data center fully utilized on that site quicker. So we have just been looking at things from feedback. We've got that we can do to improve the offering to the site and improve our ability to get a lease with strong economics with a strong candidate.

Jason Les: So we have just been looking at things from feedback we've gotten that we can do to improve the offering of the site and improve our ability to get a lease with strong economics with a strong tenant. We think additional fiber probably could be completed in about 12 months. That would be used by, we would use a third party to get that done. The good news is because of the area that the Corsicana site is in, 60 miles from this tier one market in Dallas, that there's a significant amount of fiber that we can tap into that area to add additional lines.

Speaker Change: We think additional fiber probably can be completed in about 12 months that would be used by we would use a third party to get that done.

Speaker Change: The good news is because of the area that the corsicana side than 60 miles from this tier one in that market in Dallas.

Speaker Change: A significant amount of fiber that we can tap tap into that area to add additional lines. So it's not as daunting, but activity is it may be in a more remote location.

Jason Les: So it's not as daunting of an activity as it may be in a more remote location. What's also interesting is because of the close proximity of our two sites, we even have the ability to potentially run dark fiber between the two sites. So for a tenant that was looking for a substantial amount of capacity and was interested in both sites, they could potentially have a 1.7 gigawatt campus connected with their own fiber in between. So we're in a good area to do this. We're bringing in outside help to help us get this done. Probably take about 12 months to complete the additional fiber.

Speaker Change: What's also interesting is because of the close proximity of our two sites, we even have the ability to potentially run dark fiber between the two sites. So for a tenant that was looking for a substantial amount of capacity and interestingly both sites that could potentially have a $1 seven gigawatt campus.

Speaker Change: <unk> with their own fiber in between so good.

Speaker Change: We're in a good area to do this we're bringing in outside help to help us get this done probably would take about 12 months to complete.

Speaker Change: <unk> hardware.

Jason Les: Uh, that's a really good caller. And then, um, those of you with longer term... All thumbs up! Peace. um...

Speaker Change: That's really good color and then does this.

Speaker Change: With longer term.

Speaker Change: Opportunity, but they got.

Speaker Change: One of your site visits you talked about the potential to do onsite generation.

I think that the.

Speaker Change: <unk> says.

Speaker Change: Generators, but theres also been a lot of interest in kind of this micro grids.

Speaker Change: Ultimately see the opportunity for net.

Speaker Change: To run that gas turbines as a source of redundancy. In addition to your credit correct.

Jason Les: that i thought i would Yeah, from the work that we've done, Joe, we think that diesel generation would be the ideal way to provide backup, redundant power at the core security facility. You know, with our capabilities from E4A, like I touched on with earlier question, they bring a strong expertise in nat gas generation. So, if there was an opportunity to use power, I'm sorry, to use gas to provide nat, I'm sorry, if we had the ability to use gas to provide backup generation using natural gas, that was something we'd be very well positioned to do with them.

Speaker Change: Any color there would be helpful.

Joe Flynn: Yes from the work that we've done Joe we think that diesel generation will be the ideal way to provide backup redundant power at the corsicana facility.

Joe Flynn: With our capabilities from beforehand like I touched on that earlier question they bring a strong expertise in.

Joe Flynn: That cash generation. So if there was an opportunity to use power I'm, sorry to use gas to provide not yet no.

Joe Flynn: I'm sorry.

Joe Flynn: The ability to use gas to provide backup generation using natural gas, that's something we'd be very well positioned to deal with them, but of course, it came out likely would be useful.

John Todaro: But, of course, it came out likely would. All right, thanks. Thank you. One moment for the next question. And the next question is coming from the line of John Todaro of Needham. Your line is. Great, thanks for taking my question. I just wanted to go back to two points that were brought up earlier. You mentioned an LOI is not in place right now. I just want to confirm that. So no LOI right now. And then the second point, you said you'd be very open to a powered shell, but you didn't think the market wanted that right now.

Joe Flynn: Alright. Thanks.

Joe Flynn: Yes.

Speaker Change: Thank you one moment for the next question and the next question is coming from the line of John to Darrow of Needham. Your line is open.

Speaker Change: Great. Thanks for taking my question I just wanted to go back to two point.

Speaker Change: That were brought up earlier, you mentioned an LOI.

Speaker Change: Not in place right now I just want to confirm that so no LOI right now and then the second point you said you would be very open to a powered shell, but you didn't think the market wanted that right now.

Jason Les: You know, I think we kind of got some of the sense that hyperscalers are maybe pushing Bitcoin miners to do a powered shell. So that'd be interesting if that's not the case, if they want a full stack build, but would love to get color on Yeah, John, so there's not an LOI in place right now. With respect to my comments on a powered shell, what I meant to convey was we do not believe that is a value-maximizing route for Riot specifically. There's, you know, for example, there's a lot of interest in just leasing land. That would not be value-maximizing for Riot based on what we're seeing right now, but we remain open to that, you know, in case the right deal structure came along.

Speaker Change: I think we kind of get some of the sense that hyperscale or maybe pushing bitcoin miners to do a powered shell. So that'd be interesting if thats not the case that they want a full stack built.

Speaker Change: But would love to get Colorado's too.

Speaker Change: Yes, John so.

Speaker Change: There is not an LOI in place right now with respect to my comments on our powered shell.

Speaker Change: What I meant taking day was we do not believe that is the value maximizing route for riot specifically.

Speaker Change: Yes.

Speaker Change: For example, there is a lot of interest in just leasing land.

Brian Johnson: That would not be value maximizing Brian based on what we're seeing right now, but we remain open to that.

Speaker Change: In case, the REIT deal structure came along.

Jason Les: I think they Hyper scalers out there are looking at all types of options. They are looking to just lease powered land. They are looking to take power shells and they are looking at build to suit data centers as well. So our objective as a management team is to maximize the value of our assets, to keep an eyes wide open approach on the way that might be. But what we're seeing right now is that a build to suit data center is likely the best way for Riot to accomplish. understood and you get the sense that if if they want a power gel instead of that you would maybe just do Bitcoin mining with Corsicana is that kind of option number We're not really thinking about it like that right now.

Brian Johnson: I think they.

Brian Johnson: Hyperscale there's out there are looking at all types of options.

Brian Johnson: They are looking to just lease tower land. They are looking to take powered shells and they are looking at build to suit data centers as well. So our objective as a management team is to maximize the value of our assets keeping eyes wide open approach on the way that might be.

Brian Johnson: What we're seeing right now is that our build to suit data center is likely the best wafer right.

Brian Johnson: Yeah.

Speaker Change: Understood and do you get the sense that.

Speaker Change: If they want a powered shell instead of that you would maybe just do bitcoin mining with of course, the Canada is that kind of option number two.

Speaker Change: We're not really thinking about it like that right now to be honest, Sean we're pretty committed to this path. We believe that we can be successful and building a data center.

John Todaro: To be honest, John, we're pretty committed to this path. We believe that we can be successful in building a data center at Corsicana. We think it's just such an attractive offering. We are working on putting together a team that will be able to deliver a build here. And I think that's an important differentiator that we'll probably have when it comes to these conversations. So yeah, we're not thinking of HPC or Bitcoin mining right now. We are committed to the data center path. Understood. Makes sense. Sounds good. Thank you, gentlemen. Thank you.

Speaker Change: Corsicana, we think it's just such an attractive offering.

Speaker Change: Working on putting together a team that will be able to deliver a build here and I think thats a important differentiator that Brian is going to have when it comes to these conversations so.

Speaker Change: Yeah, we're not thinking of HTC or bitcoin mining right now we are committed to the data center.

Speaker Change: Understood makes sense sounds good thank you gentlemen.

Operator: Thank you and this does conclude today's Q&A session.

Speaker Change: Thank you.

Speaker Change: Thank you and this does conclude today's Q&A session I would like to turn the call back over to Phil for closing remarks.

Phil Mcpherson: I would like to turn the call back over to Phil for closing remarks. Thank you, Lisa. I'd like to thank everybody for joining us today on Riot's first quarter earnings call and we look forward to updating you on our future progress.

Phil Mcpherson: Thank you Lisa Thank you everybody for joining us today on <unk> first quarter earnings call and we look forward to updating you on our future progress take care.

Operator: Take care. Thank you all for participating in today's conference.

Phil Mcpherson: Thank you all for participating in today's conference you may now disconnect.

Operator: You can now disconnect.

Phil Mcpherson: Okay.

Phil Mcpherson: [music].

Phil Mcpherson: Okay.