Riot Platforms, a Bitcoin miner, is currently attracting interest from big-name companies for potential partnerships in AI and high-performance computing initiatives. CEO Jason Les mentioned during an earnings call that they have been receiving offers for large-scale power capacity from financially stable organizations interested in long-term agreements. The company’s reputation and extensive energy capacity are contributing to these offers, with inquiries for hundreds of megawatts of power.
Les emphasized Riot’s readiness to explore AI ventures and mentioned their strategic advantage with facilities like the 750-megawatt Rockdale facility and the Corsicana mining site with a one-gigawatt capacity. This interest in AI aligns with the potential for Bitcoin miners to generate additional revenue by allocating some of their energy capacity to the sector.
Despite the promising outlook, Riot reported a widening net loss of $154.4 million, or $0.54 per share, for the third quarter. This loss represents an increase from the $80 million loss reported in the same period last year. However, the company did see a significant rise in total revenue, reaching $80 million due to higher Bitcoin prices and increased operational output.
The average Bitcoin mining cost for Riot in the quarter was $35,376 per coin, excluding depreciation. This increase was influenced by a reduction in power credits, a result of the Bitcoin halving event in April 2024 that cut block rewards in half. The global network hash rate also experienced a 59% increase, adding pressure to mining costs.
Riot’s potential entry into the AI sector could be a strategic move to diversify revenue streams and leverage their existing power capacity. This shift aligns with industry trends, as seen in Core Scientific’s lucrative deal with AI Hyperscaler CoreWeave, expected to generate over $8 billion in revenue over 12 years.
Overall, Riot Platforms’ approach to attracting blue-chip partners for AI ventures amid Q3 losses showcases their commitment to innovation and strategic growth in a rapidly evolving market. By capitalizing on their power capacity and industry reputation, Riot is positioning itself for potential success in the AI and high-performance computing sectors.
