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    RIOT
    Earnings call· Jun 2026(Q2 FY26)

    Riot Platforms Q2 FY26 earnings call RIOT

    Aug 10, 2026 Source

    Executive summary

    Riot Platforms Q2 FY26 — Data Center Expansion and AI Lab Lease

    Riot Platforms significantly advanced its data center strategy in Q2 FY26, securing a major 191 MW lease with a frontier AI lab and placing its 1 GW Corsicana site under LOI. The company is leveraging its power-first approach and vertical integration to rapidly deliver mission-critical AI infrastructure, funding expansion through strategic Bitcoin sales and project-level financing.

    Highlights

    5

    • Secured a 20-year data center lease with a frontier AI lab for 191 MW, expected to generate $9.1 billion in total contract revenue.

    • Total contracted data center revenue reached $9.8 billion across 241 MW with AMD and the AI lab.

    • Corsicana's 1 GW site is under a nonbinding LOI with a single tenant for 756 MW of critical IT capacity.

    • Achieved 84% operating lease gross margin in the Data Center segment, generating $4.1 million gross profit from recurring lease revenue.

    • Engineering segment revenue more than tripled YoY to $37.3 million, with gross margin expanding to over 27%.

    Concerns

    4

    • Reported a GAAP net loss of $237 million or $0.68 per diluted share.

    • Adjusted EBITDA loss of $70 million.

    • Incurred a $75 million mark-to-market loss on Bitcoin holdings.

    • Recorded a $28 million impairment of mining-related construction items at Rockdale due to repurposing for data centers.

    Guidance & targets

    19
    CategoryTargetConfidence
    AI Lab Lease Capacity Delivery (Phase 1)
    First 96 MW delivered
    high materiality
    High
    AI Lab Lease Capacity Delivery (Full Deployment)
    Full 191 MW deployment completed
    high materiality
    High
    AMD Expansion Capacity Delivery (Initial Phase)
    Initial 10 MW delivered
    medium materiality
    High
    AMD Expansion Capacity Delivery (Full Phase)
    Remaining 15 MW delivered
    medium materiality
    High
    AI Lab Lease Total Contract Revenue
    $9.1 billion
    high materiality
    High
    AI Lab Lease Net Operating Income (NOI)
    $7.3 billion to $8.2 billion
    high materiality
    High
    AI Lab Lease Illustrative Capital Expenditures
    $11 million to $12 million per IT megawatt
    high materiality
    High
    AMD Lease Average Annual Revenue
    $63.6 million
    medium materiality
    High
    AMD Lease Average Annual NOI
    $51 million
    medium materiality
    High
    AI Lab Lease Average Annual Revenue
    $457 million
    high materiality
    High
    AI Lab Lease Average Annual NOI
    $365 million to $411 million
    high materiality
    High
    Combined Average Annual Revenue (AMD + AI Lab)
    $520 million
    high materiality
    High
    Combined Average Annual NOI (AMD + AI Lab)
    $416 million to $462 million
    high materiality
    High
    AMD Initial 25 MW Financing Close
    Close before the end of the third quarter
    medium materiality
    High
    AMD Initial 25 MW Debt Proceeds
    Nearly double initial equity position
    medium materiality
    High
    AI Lab Financing Debt-to-Cost Range
    80% to 90% loan-to-cost
    high materiality
    High
    AI Lab Financing Equity Requirement (Net)
    $30 million to $280 million
    high materiality
    High
    AI Lab Build-out CapEx Cadence
    Ramp up H2 2026, peak H1 2027, continue into early 2028
    medium materiality
    High
    Combined Project CapEx Peak (AMD + AI Lab)
    Around Q2 and Q3 of 2027
    medium materiality
    High

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    Data Center
    Recurring operating lease revenue grew over 400% QoQ, driving gross profit growth despite lower total segment revenue due to fluctuating fit-out activity. The 84% operating lease gross margin is in line with expectations.
    Critical IT capacity online: 25 MWOperating lease revenue: $4.9 millionOperating lease gross margin: 84%Tenant fit-out services revenue: $18.3 million
    		$23.2 million—Down from $32.2 million (Q1 FY26)$6.5 million gross profit
    Bitcoin Mining
    Power strategy generated significant curtailment credits, maintaining industry-leading low power costs and mining efficiency despite a 9% YoY increase in the average global network hash rate. Hash rate utilization was partially impacted by minor downtime in Kentucky.
    Bitcoin produced: 1,587Bitcoin per day: 17.4Deployed hash rate: 44.4 EH/sGlobal network share: 4.6%Hash rate utilization: 87%Power curtailment credits: $10 millionNet cost of power: $0.036 per kWhDirect cost to mine per Bitcoin: $49,912
    		$113.7 million———
    Engineering (ESS Metron and E4A Solutions)
    Strong growth and margin expansion, with accelerated backlog conversion due to a 25% increase in manufacturing capacity. This segment plays a key supporting role in Riot's vertically integrated data center strategy.
    Backlog: $177.1 millionData center sector share of backlog: 90%Manufacturing capacity increase: 25%
    		$37.3 millionMore than triple from $10.6 million—Over 27% gross margin

    Operational metrics

    17
    Total liquidity
    $1.2 billion
    Q2 FY26

    Consisting of Bitcoin and cash.

    Cash and investments balance
    $549 million
    Q2 FY26

    Includes restricted cash securing the $200 million credit facility.

    Bitcoin holdings value
    $666 million
    Q2 FY26

    Represents a significant reduction in holdings as inventory is used for data center development.

    Adjusted EBITDA
    -$70 million
    Q2 FY26

    Reflects over $240 million in noncash items.

    GAAP net loss
    $237 million
    Q2 FY26

    Includes noncash items such as mark-to-market loss on Bitcoin, depreciation, and impairment.

    Diluted EPS
    -$0.68
    Q2 FY26

    Based on GAAP net loss.

    Noncash items total
    Over $240 million
    Q2 FY26

    Exceeded the entire net loss for the quarter.

    AMD total capital expenditures
    $170.2 million
    Full deployment by May 2027

    For 50 megawatts of capacity.

    Corsicana potential critical IT capacity
    756 MW
    Future

    Supported by 1 gigawatt of fully approved power on Riot owned land.

    Total power portfolio
    More than 2 GW
    Current

    Across all sites.

    Total contracted or advanced discussion capacity
    Approximately 1 GW
    Current

    Across the portfolio.

    AMD initial 25 MW CapEx
    $90 million
    Initial deployment

    Financed entirely with cash on hand.

    AMD second 25 MW expected CapEx
    $81 million
    Second phase deployment

    Expected total capital expenditures.

    Morgan Stanley interim financing facility
    $573 million
    Near term

    To fund initial development CapEx while investment-grade backstop is finalized.

    AMD initial 25 MW term loan
    Approximately $180 million
    Q3 FY26

    Nearing finalization, sized against stabilized value of contracted asset.

    AMD second 25 MW delayed draw term loan
    $70 million
    Future

    Will fund $69 million of the expected $81 million in total CapEx for the second 25 MW.

    ESS Metron cumulative acquisition CapEx savings
    Approximately $23.8 million
    Since December 2021

    Achieved through vertical integration.

    Industry KPIs

    4
    MetricValueDetails
    Capacity CAPEX$2.1 billion to $2.3 billionUSD
    Revenue growth$174 millionUSD
    Bookings billings$9.1 billionUSD
    Operating FCF margin rule of 4080% to 90%%

    Orderbook & backlog

    2
    Engineering segment backlog$177.1 millionQ2 FY26

    Approximately 90% related to the data center sector.

    Total contracted data center revenue$9.8 billionQ2 FY26

    Across 241 MW with AMD and a leading frontier AI lab.

    Deals & partnerships

    3
    One of the world's leading frontier AI labsData center lease for 191 MW critical IT capacity at Rockdale.$9.1 billion total contract revenue (initial 20-year term); $16.1 billion with two 5-year extension options20 years (initial term), with two 5-year extension options

    Custom-built Tier 3 data center based on tenant's latest design specifications, with annual escalations in base rent. First 96 MW targeted for delivery in December 2027, full deployment by June 2028.

    AMDExpansion option exercised for 25 MW, bringing total contracted capacity to 50 MW at Rockdale.

    Initial 25 MW delivered in May. The second 25 MW is under construction, with initial 10 MW expected by November 2026 and remaining 15 MW by May 2027. AMD retains expansion options for up to an additional 150 MW at Rockdale.

    Single tenant (unnamed)Nonbinding Letter of Intent (LOI) for the entirety of the Corsicana site.

    Covers 756 MW of critical IT capacity. Advanced commercial and design discussions are underway. This milestone reflects strong demand for large-scale, fully approved power.

    Capital programs

    2
    Frontier AI Lab Data Center Build-out (Rockdale)underway$2.1 billion to $2.3 billion
    Funding: $573 million interim financing from Morgan Stanley, anticipated debt financing (80%-90% loan-to-cost), equity from balance sheet and recycled AMD proceeds
    Start: Development work already underway

    Benefit: 191 MW critical IT capacity

    Custom-built Tier 3 data center based on tenant's latest design specifications. Design finalized, procurement begun, Yates Construction selected as general contractor. ESS Metron and E4A integrated into delivery plan. Required power capacity secured under active interconnection.

    AMD Data Center Expansion (Rockdale)underway$81 million
    Funding: $70 million delayed draw term loan (85% loan to cost), $12 million net equity requirement
    Start: Construction underway

    Benefit: 25 MW critical IT capacity

    Design nearly complete. ESS Metron's engineering and manufacturing capabilities embedded in the delivery plan for schedule certainty and cost discipline.

    Risks & headwinds

    5
    Bitcoin Price VolatilityQ2 FY26

    $75 million mark-to-market loss on Bitcoin holdings

    Mitigation: Utilizing Bitcoin inventory as a primary funding source for data center capital expenditures and increasing cash on hand to enhance liquidity visibility.

    Mining Asset ImpairmentQ2 FY26

    $28 million impairment of mining-related construction items

    Mitigation: Repurposing the affected capacity at Rockdale for data center development, aligning with the strategic shift towards AI infrastructure.

    Nonbinding LOI Uncertainty (Corsicana)Ongoing, 'coming months'

    Nonbinding nature of the LOI for the Corsicana site, which is subject to twists and turns

    Mitigation: Deep engagement in technical, commercial, and legal discussions with the prospective tenant; continuing development and procurement of long-lead items to derisk execution regardless of the LOI outcome.

    Supply Chain Bottlenecks (Long-lead equipment)Ongoing

    Electrical equipment (switchgear, PDUs) remains supply chain constrained

    Mitigation: Leveraging vertical integration through ESS Metron and E4A Solutions to control the supply chain, accelerate substation development, and reduce equipment risk for data center builds.

    ERCOT Batch Process and Regulatory ScrutinyOngoing

    Evolving ERCOT batch process and Governor Abbott's comments on data center requirements, making new power acquisition more challenging

    Mitigation: Existing sites are not subject to the batch process due to existing interconnection agreements; active engagement with ERCOT; adherence to responsible development practices (e.g., paying for infrastructure, closed-loop water cooling) to maintain good standing and enhance value of current sites.

    What to watch in Q3 FY26

    5

    Corsicana LOI conversion to definitive lease

    Coming months
    CurrentNonbinding LOI with single tenant for 756 MW
    TargetExecuted lease agreement

    Why it matters

    Represents a significant portion of Riot's power portfolio and a major step in its data center strategy, with potential for over $1 billion in annual rent.

    We will update the market in the coming months⏳ when there's more to share about this process.

    Q&A highlights

    8

    How was the CapEx range for the new AI lab deal determined, and what factors contribute to its clarity?

    Jason Les explained that the CapEx range benefits from finalized design work with the tenant, advanced procurement of long-lead items, and collaborative efforts with a general contractor experienced with the tenant. These factors provide strong visibility into labor availability and pricing, allowing for a well-defined CapEx figure that includes a healthy contingency.

    “So this has allowed us to have really good clarity on labor availability and pricing to fully deliver the projects.”

    asked by Stephen Byrd · answered by Jason Les

    3 min read6 chapters

    Detailed Narrative

    01

    Strategic Shift to Data Centers

    Riot Platforms is strategically pivoting from a Bitcoin mining-centric model to a diversified data center business, leveraging its substantial power infrastructure. The company emphasizes its "power-first" approach and vertical integration through ESS Metron and E4A Solutions to derisk execution and control costs in data center development. This strategic shift is a direct response to the accelerating demand for critical IT capacity from AI labs and hyperscalers, positioning Riot as a key infrastructure provider in the AI era.

    02

    Rockdale Campus Transformation

    The Rockdale campus is undergoing a significant transformation, evolving from a single-use Bitcoin mining site into a premier data center development hub. With 241 MW now contracted to AMD and a leading frontier AI lab, the campus is diversifying its tenant base and is expected to generate high-margin, recurring revenue. This evolution validates Riot's vision for the site, which was acquired with the intent to become one of the country's leading data center development campuses, attracting tenants with requirements for certainty of power at scale and reliable execution.

    03

    Corsicana Development Momentum

    The Corsicana site, boasting 1 gigawatt of fully approved power on Riot-owned land, has achieved a significant milestone by entering into a nonbinding Letter of Intent (LOI) with a single tenant for its entire 756 MW critical IT capacity. This development underscores the strong market demand for large-scale, pre-approved power and the confidence prospective tenants have in Riot's ability to deliver. Despite the non-binding nature of the LOI, the company is engaged in advanced commercial and design discussions, continuing development and procurement to derisk execution timelines for this multi-year project.

    04

    Disciplined Financing Strategy

    Riot employs a multi-pillar financing strategy to fund its data center expansion, utilizing its strong balance sheet, which includes $666 million in Bitcoin and $549 million in cash. The strategy involves capital recycling from completed projects, such as the initial 25 MW for AMD, to generate net new capital. This capital is then redeployed into new, higher-return projects like the AI lab lease, with the goal of minimizing reliance on external equity financing and extending the runway of its balance sheet.

    05

    Vertical Integration Advantage

    The Engineering segment, comprising ESS Metron and E4A Solutions, provides a crucial competitive advantage by manufacturing critical long-lead components in-house, such as low and medium voltage switchgear and power distribution units. This vertical integration accelerates substation development, reduces long-lead equipment risk, and generates meaningful CapEx savings, estimated at $23.8 million cumulatively since ESS Metron's acquisition. This capability was key to the on-schedule delivery for AMD and is fully integrated into the AI lab build-out plan.

    06

    Power Management Expertise

    Riot's power strategy remains a fundamental strength, with its Bitcoin mining segment generating $10 million in power curtailment credits in Q2 FY26. This expertise resulted in a net cost of power of $0.036 per kilowatt hour, which is among the lowest in the industry. The company's ability to manage its power portfolio and trading capabilities is a core aspect of its operations, reflecting its identity as a "power-first" company and providing a competitive edge in its data center offerings.

    AI-generated summary of the company’s earnings call. Not investment advice.