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Introduction & Market Context
Riot Platforms (NASDAQ:RIOT) presented its Q2 2025 results on July 31, 2025, highlighting strong Bitcoin mining performance while accelerating its strategic pivot toward data center operations. The company reported a net income of $219.5 million ($0.65 per share), significantly exceeding analyst expectations of -$0.2065 per share. Total (EPA:TTEF) revenue reached $153 million, slightly above the forecasted $150.87 million, driving a 1.11% increase in the stock price during after-hours trading. However, premarket trading on August 1 showed a 7.9% decline, suggesting mixed investor sentiment despite the positive results.
Quarterly Performance Highlights
Riot delivered impressive Bitcoin production metrics in Q2 2025, mining 1,426 BTC (averaging 15.7 BTC daily) while maintaining a Bitcoin treasury of 19,273 BTC valued at approximately $2.1 billion. The company achieved a 5% quarter-over-quarter increase in hash rate to 35.4 EH/s, with improved operational uptime of 87% compared to 61% in the same quarter last year.
As shown in the following comprehensive snapshot of Riot’s Q2 2025 performance:
Bitcoin mining operations generated $140.9 million in revenue (92% of total revenue), with a gross margin of 50%, slightly improved from 48% in Q1 2025. The company maintained an industry-leading power cost of 3.5 cents per kWh and earned $8.3 million in power curtailment credits. Adjusted EBITDA reached $495.3 million, with significant adjustments for non-cash expenses.
The following chart illustrates Riot’s impressive growth in Bitcoin mining efficiency and scale from Q2 2024 to Q2 2025:
Strategic Initiatives
Riot’s presentation emphasized its strategic transition from pure Bitcoin mining toward data center operations, positioning the company to capitalize on the growing demand for data center capacity, particularly in the Dallas market. The company articulated a three-pronged approach to drive shareholder value:
A key component of this strategy involves the expansion of the Corsicana facility for data center development. In July 2025, Riot acquired an additional 238 acres contiguous with its existing property, bringing the total available land at Corsicana to 858 acres. This expansion provides greater flexibility for deploying power according to various tenant designs.
To strengthen its data center capabilities, Riot hired Jonathan Gibbs as Chief Data Center Officer, bringing over 15 years of global leadership experience in data center development and operations. Gibbs previously led projects totaling more than 1 GW of capacity across multiple continents, representing over $17 billion in global infrastructure investment.
The company highlighted the significant market opportunity in data centers, noting that existing grid infrastructure is insufficient to meet forecasted demand. With Dallas representing the fifth largest data center market in the U.S. and vacancy rates at just 3.5%, Riot is strategically positioned to capitalize on this growing demand.
Detailed Financial Analysis
Riot’s Bitcoin mining profitability remained strong despite increasing costs. The cost to mine per Bitcoin increased from $43,808 in Q1 2025 to $48,992 in Q2 2025, primarily due to a 9% increase in global network hash rate and property tax reassessment at the Corsicana facility.
The company provided a detailed sensitivity analysis of its Bitcoin mining business under various hash price scenarios, demonstrating strong run-rate profitability even in less favorable market conditions:
Riot’s engineering business continues to be a key component of its vertical integration strategy, with revenue increasing to $10.6 million (7% of total revenue) and gross margin improving to 15%. The engineering backlog reached a record $118.7 million, up from $72.8 million in Q2 2024, indicating strong future growth potential.
Capital expenditures for 2025 are forecasted at $381.2 million, with $179.6 million already spent and $201.6 million planned for the second half of the year. These investments are primarily directed toward infrastructure development at Corsicana, Rockdale, and Kentucky facilities, as well as miner purchases to support hash rate growth.
Forward-Looking Statements
Riot has increased its 2025 hash rate growth target from 38.4 EH/s to 40.0 EH/s, representing a 26% year-over-year growth. The company also set a Q1 2026 hash rate target of 45 EH/s, aiming to maintain approximately 4% share of the global network.
The company outlined an aggressive roadmap for its data center business, progressing from engaging consultants and building internal expertise to securing leases with tenants and developing a future pipeline. This methodical approach reflects Riot’s commitment to a measured transition from Bitcoin mining to data center operations.
During the earnings call, CEO Jason Less emphasized that "Riot is in the business of monetizing megawatts," highlighting the company’s focus on maximizing the value of its power assets. Management reiterated its commitment to a strategic approach in developing data center capabilities while maintaining flexibility in tenant negotiations.
Despite the positive quarterly results, investors should be aware of potential risks, including power supply constraints, Bitcoin price volatility, increased competition, and regulatory changes. The premarket trading decline suggests that some investors may be concerned about these factors or the sustainability of the company’s profitability as it navigates its strategic transition.
Full presentation:
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