Riot Platforms Inc. (NASDAQ:RIOT) shares are soaring Wednesday after reporting third-quarter results that beat analyst expectations on both earnings and revenue.
- Riot Platforms stock is showing exceptional strength. What’s behind RIOT gains?
Riot Platforms Stock Rises After a Third-Quarter Beat
Riot Platforms shares are climbing after the company’s third-quarter report topped Wall Street’s forecasts. Riot earned 1 cent a share, while analysts had projected a loss of 27 cents, although the year-earlier quarter produced 26 cents. Revenue totaled around $181.43 million, beating the roughly $160.75 million estimate by 12.86% and inching up 0.7% from $180.2 million a year ago.
Beneath the steady total, Riot’s mix of businesses is shifting. Bitcoin (CRYPTO: BTC) mining sales dropped to $116.0 million from $160.8 million because the average bitcoin price fell to $70,855 from $114,361, though output rose 16% to 1,637 bitcoin.
Engineering sales more than doubled to $47.0 million from $19.1 million as other companies building data centers bought custom electrical equipment. Data centers contributed $18.4 million, the first complete quarter in which the 25 megawatts delivered to AMD produced income.
Riot Signs its Largest Lease Yet at Corsicana
Riot also announced a 15-year agreement with an unnamed top AI lab to rent its whole Corsicana campus, which holds 910 megawatts of computing capacity.
CEO Jason Les described it as “the largest lease in Riot’s history.” Across its base 15-year term, the lease should bring in about $28 billion, an average of roughly $1.8 billion a year, and the total could climb to about $54 billion if the tenant exercises two five-year renewals. The tenant pays nearly all operating costs, so Riot puts its net operating income margin near 99%.
Riot now has 1,151 megawatts under contract, worth about $38 billion, counting its Rockdale lease with the same lab and its deal with AMD. Les said the lower capital needs and Riot’s balance sheet should cover the announced projects without a stock sale.
Riot ended September with $950.2 million, split between cash and 2,418 bitcoin, and cash made up $748.2 million of it. Since January, the company has parted with 20,264 coins, taking in roughly $1.5 billion that mostly went to data center construction. It also repaid and closed a $200 million line of credit from Coinbase.
RIOT Shares Are Flying
RIOT Price Action: Riot shares were up 14.48% at $16.05 at the time of publication on Wednesday, according to Benzinga Pro.
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