Riot Platforms’ Bitcoin sales hit 10,599 as reserves fell nearly 79%

Riot Platforms’ Bitcoin sales reached 10,599 Bitcoin in the third quarter, cutting its reserves by nearly 79% between June 30 and September 30 as it funded a data-center expansion. Figures accompanying its November 4 earnings release show the scale of that shift, alongside a 15-year AI lease at its Corsicana campus in Texas worth approximately $28 billion over its initial term.

Key takeaways

• Riot held 2,418 Bitcoin at September’s end.
• Nine-month Bitcoin disposals raised approximately $1.5 billion.
• Corsicana’s AI lease covers 910 megawatts of IT capacity.
• Quarterly mining revenue declined despite higher Bitcoin production.

Riot Platforms’ Bitcoin sales outpace production

Riot sold about 6.5 times its quarterly Bitcoin production, drawing down holdings from 11,380 Bitcoin on June 30 to 2,418 on September 30. It produced 1,637 Bitcoin during the quarter.

The 10,599 sales total reconciles opening reserves, production and closing holdings. It also matches the difference between the 20,264 Bitcoin sold over the first nine months and the 9,665 sold during the first half, recorded in Riot’s June quarterly filing.

Riot said its Bitcoin sales generated approximately $1.5 billion over nine months, primarily for data-center development. Its largest projects are scheduled to begin delivery in 2027.

Corsicana AI lease carries $28 billion initial value

Riot’s Corsicana agreement covers 910 megawatts of critical IT capacity for an artificial intelligence laboratory over 15 years. Riot expects about $28 billion in contracted revenue during that period, increasing to approximately $54 billion if the tenant exercises both five-year extension options.

Riot will supply the land, power infrastructure and prepared sites. The tenant will purchase, own and operate the modular computing facilities and bear substantially all operating costs. The agreement requires rent on the entire contracted capacity, regardless of utilization.

Including existing Rockdale agreements, such as its AMD lease, Riot’s contracted data-center capacity reaches 1,151 megawatts. Riot projects average annual net operating income above $2 billion at full deployment.

Development costs and phased delivery

Riot estimates Corsicana development spending at approximately $5.5 billion, or $6 million per megawatt. The rollout plan calls for 400 megawatts to arrive in September 2027, with an additional 200 megawatts in January 2028 and 310 megawatts more in July 2028.

The funding structure assigns $2 million per megawatt to site preparation and electrical infrastructure. Another $4 million per megawatt will reimburse the tenant after each phase enters service and starts paying rent.

Riot expects project debt to finance those reimbursements. If comparable market financing is unavailable, the tenant will provide that funding directly and recover it through future rent credits. Riot said it does not currently expect to issue equity for its announced projects.

Mining revenue falls as other businesses grow

Growth in data-center and engineering operations helped offset weaker mining income, lifting Riot’s third-quarter revenue to $181.4 million, up from $180.2 million in the same period a year earlier. Mining revenue declined about 28% to $116 million despite a 16% production increase.

The average Bitcoin price Riot reported fell from $114,361 to $70,855. Its average mining cost per Bitcoin, excluding depreciation, decreased from $46,324 to $39,265, supported by $24.7 million in power-curtailment credits.

Data-center revenue reached $18.4 million, including $7.7 million of base rent and $10.2 million of tenant fit-out reimbursements. Engineering revenue increased from $19.1 million to $47 million.

By the end of September, Riot held $748.2 million in cash (of which $79.2 million was restricted) along with roughly $202 million worth of Bitcoin, and the company also paid off and shut down its $200 million Coinbase credit facility, releasing all previously pledged Bitcoin collateral.

Article produced with the assistance of artificial intelligence and reviewed by the editorial team.