Riot Platform attracts AI venture ‘blue chip’ partners despite deficit in 3rd quarter
Jason Les, CEO of Riot Platforms, revealed significant interest from “blue chip” companies looking to collaborate with Bitcoin miners on AI and high-performance computing (HPC) initiatives.
Les explained on the October 30 earnings call that the company had received numerous inbound proposals to secure large-scale power capacity. Inquiries come from highly credible and financially stable organizations capable of securing long-term contracts.
Les turned his attention to Riot’s reputation and extensive energy capacity. He said:
“Riot’s reputation and image of being oversized has actually resulted in us receiving unsolicited offers for significant amounts of power capacity. “The interest we’re seeing is for hundreds of megawatts, not necessarily less.”
This statement corroborates previous interviews in which the CEO emphasized that he is ready to consider AI ventures if he sees the right partnerships and deal structures.
Riot’s facilities, such as the 750-megawatt Rockdale facility and the 1-gigawatt capacity Corsicana mine site, provide strategic advantages that can help advance the company’s efforts in the sector, according to Les.
Riot’s interest in AI comes as no surprise. Because this sector can provide a lucrative revenue stream for Bitcoin miners who allocate part of their energy capacity to AI. One example is how Core Scientific is expected to earn more than $8 billion over 12 years from its deal with AI hyperscaler CoreWeave.
3rd quarter loss
The potential revenue boost from AI may be timely for Riot, which reported a wider net loss in the third quarter compared to the same period last year despite notable revenue growth.
Riot reported a net loss of $154.4 million per share, compared to a loss of $80 million during the same period last year, according to a press statement. These increased losses were driven by rising Bitcoin prices and increased operating production, resulting in a 65% increase in total revenue to $80 million.
Additionally, Riot’s average Bitcoin mining cost, excluding depreciation costs, was $35,376 per coin during the quarter. This increase is due to a decrease in power credits (75% decrease compared to Q3 2023) and the recent Bitcoin halving event in April 2024, which resulted in block rewards being halved.
Additionally, the global network hash rate increased by 59%, putting additional pressure on mining costs.
