Riot Platforms CEO Jason Les has revealed substantial curiosity from “blue chip” firms trying to companion with the Bitcoin miner on AI and high-performance computing (HPC) initiatives.
Talking on the October 30 earnings convention name, Les defined that the corporate had acquired quite a few incoming presents to safe large-scale energy capability. Requests come from extremely credible and financially secure organizations able to committing to long-term agreements.
Les attributed this curiosity to Riot's status and huge vitality capability. He declared:
“Riot's status and our picture of getting giant electrical capability is what leads us to obtain these unsolicited presents for actually giant quantities {of electrical} capability. The curiosity we're seeing is within the a whole bunch of megawatts, not essentially smaller quantities.
The assertion corroborates an earlier interview during which the CEO highlighted Riot's willingness to contemplate AI tasks if it noticed the proper partnership and deal construction.
In keeping with Les, Riot's amenities, such because the 750-megawatt Rockdale facility and the one-gigawatt Corsicana mining web site, supply strategic benefits that might assist advance the corporate's efforts within the sector.
Riot's curiosity in AI is no surprise because the sector might present a profitable income stream for Bitcoin miners who allocate a part of their vitality capability to it. One instance is how Core Scientific is predicted to earn greater than $8 billion over a 12-year interval in a cope with AI Hyperscaler CoreWeave.
Third quarter losses
A possible improve in income by way of AI can be well timed for Riot, which reported a widening year-over-year internet loss for the third quarter regardless of a notable improve in income.
In keeping with a press launch, Riot reported a internet lack of $154.4 million ($0.54 per share), in comparison with a lack of $80 million throughout the identical interval final yr. This elevated loss occurred alongside a 65% improve in whole income to $80 million, fueled by increased Bitcoin costs and better operational manufacturing.
Moreover, Riot's common Bitcoin mining value, excluding depreciation, was $35,376 per coin for the quarter. This improve is because of a discount in vitality credit – down 75% from Q3 2023 – and a latest Bitcoin halving occasion in April 2024, which halved block rewards.
Moreover, the worldwide community hash fee noticed a 59% improve, placing additional stress on mining prices.
