- Revenue Growth: Total revenue surged to $647 million (72% YoY), driven by record Bitcoin Mining revenue of $576.3 million and $294 million gross profit.
- Rockdale Site Acquisition: Purchased 200-acre Rockdale site for $96 million using Bitcoin sales, eliminating $130 million in future rental expenses.
- Power Cost Efficiency: Achieved $0.037/kWh net power cost, one of the lowest in the industry, supporting competitive data center operations.
- Engineering Backlog Growth: Engineering backlog hit $224.6 million (302% YoY), reflecting strong demand for Riot’s infrastructure capabilities.
Operational Highlights and Business Strategy
Riot Platforms has been repositioning itself to be at the forefront of the data center industry. The company completed the fee simple acquisition of its Rockdale site, securing 200 acres of critical land, and expanded its land portfolio to support full utilization of its approved power capacity. The company's leasing strategy focuses on high creditworthy tenants to match its high-quality assets, driving capital efficiency and asset valuation. As Jason Les noted, "By partnering with highly creditworthy counterparties, we secure the most favorable, lowest-cost financing available in the market."
Data Center Development and Growth Prospects
Riot has 1.7 gigawatts of fully approved firm power across its Corsicana and Rockdale sites, providing a major competitive advantage in today's power-constrained environment. The company is targeting additional announcements in 2026, with a goal of executing on its data center strategy and converting additional megawatts into contracted data center leases. Analysts estimate next year's revenue growth at 12.5%, indicating a positive outlook for the company's growth prospects.
Valuation and Comparative Analysis
Using various valuation metrics, we can assess what's priced into Riot Platforms' stock. The company's P/S Ratio stands at 8.78, while its EV/EBITDA ratio is 16.53. The ROE and ROIC are both negative, at -21.05% and -16.69%, respectively. These metrics indicate that the market is pricing in significant growth expectations, but the company's current operational performance is a concern. The signing of the AMD lease is seen as a validation of Riot's team, sites, and development model, potentially paving the way for a rerating of the underlying value of the company's power portfolio.