Riot Platforms attracting blue-chip partners for AI ventures amid Q3 losses
Riot Platforms CEO Jason Les revealed substantial interest from blue-chip companies looking to partner with the Bitcoin miner on AI and high-performance computing (HPC) initiatives.
Speaking during the Oct. 30 earnings call, Les explained that the company has received numerous inbound offers to secure large-scale power capacity. The\ inquiries come from highly credible, financially stable organizations capable of committing to long-term agreements.
Les attributed the interest to Riots reputation and extensive energy capacity. He stated:
Riots reputation and our image of having so much power capacity is whats resulting in us getting these unsolicited offers for really significant amounts of power capacity. The interest that were seeing is for hundreds of megawatts, not necessarily smaller amounts.
The statement corroborates an earlier interview where the CEO emphasized Riots readiness to consider AI ventures if it sees the right partnership and deal structure.
According to Les, Riots facilities such as the 750-megawatt Rockdale facility and the Corsicana mining site with a one-gigawatt capacity offer strategic advantages that could help advance the companys effort in the sector.
Riots interest in AI is unsurprising because the sector could provide a lucrative revenue stream for Bitcoin miners who allocate a portion of their energy capacity to it. One example is how Core Scientific is expected to earn more than $8 billion over a 12-year period in a deal with AI Hyperscaler CoreWeave.
Q3 losses
A potential revenue boost from AI would be timely for Riot, which reported a widening year-over-year net loss for the third quarter despite a notable rise in revenue.
According to a press statement, Riot posted a net loss of $154.4 million$0.54 per share, compared to a $80 million loss during the same period last year. This increased loss occurred alongside a 65% rise in total revenue to $80 million, fueled by higher Bitcoin prices and greater operational output.
Additionally, Riots average Bitcoin mining cost, excluding depreciation, was $35,376 per coin for the quarter. This increase was driven by a reduction in power creditsdown 75% from Q3 2023and a recent Bitcoin halving event in April 2024, which cut block rewards by half.
Further, the global network hash rate saw a 59% rise, putting additional pressure on mining costs.
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