This article first appeared on GuruFocus .
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Total Revenue:$167 million for Q1 2026.
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GAAP Net Loss:$500 million, or $1.44 per diluted share.
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Adjusted EBITDA Loss:$311 million.
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Bitcoin Production:1,473 Bitcoin in Q1 2026.
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Bitcoin Holdings:15,679 Bitcoin valued at approximately $1.1 billion.
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Data Center Revenue:$33.2 million, including $900,000 in operating lease revenue and $32.2 million in tenant fit-out services revenue.
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Operating Lease Revenue Gross Margin:91% for the initial 5-megawatt delivery to AMD.
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Engineering Backlog:$193.4 million, primarily driven by data center sector demand.
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CapEx for AMD Expansion:$83.2 million for 25 megawatts, at $3.3 million per megawatt.
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Projected Annualized Operating Lease Revenue Run Rate:$37.8 million by end of 2026, scaling to $55.6 million by end of 2027.
Release Date: April 30, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Riot Platforms Inc ( NASDAQ:RIOT ) successfully expanded its partnership with AMD, increasing the contracted IT capacity at the Rockdale facility to 50 megawatts, demonstrating strong execution capabilities.
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The company maintained strong capital discipline by funding data center initiatives entirely through operating cash flow and disciplined Bitcoin sales, avoiding equity issuance.
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Riot Platforms Inc ( NASDAQ:RIOT ) reported a significant reduction in CapEx per megawatt for the AMD expansion, enhancing development yield and cost efficiency.
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The Corsicana facility development is on track, with a new design increasing planned campus capacity to 756 megawatts without additional capital expenditure.
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Riot Platforms Inc ( NASDAQ:RIOT ) has a robust balance sheet, holding 15,679 Bitcoin valued at approximately $1.1 billion, providing a strong financial foundation for future growth.
Negative Points
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Riot Platforms Inc ( NASDAQ:RIOT ) reported a GAAP net loss of $500 million for the first quarter of 2026, driven by non-cash mark-to-market accounting adjustments and depreciation expenses.
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The company faces challenges in the broader data center market, where power access is a significant bottleneck, requiring aggressive pursuit of power portfolio growth.
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Despite progress, the timeline for securing additional leases at Rockdale and Corsicana remains unpredictable, with potential delays in full lease-up of capacity.
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Riot Platforms Inc ( NASDAQ:RIOT ) relies heavily on Bitcoin sales for upfront financing, which may pose risks given the volatile nature of cryptocurrency markets.
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The company is in the early stages of scaling its data center operations, with initial revenues primarily from tenant fit-out services, which carry lower margins compared to operating lease income.
Q & A Highlights
Q: Can you explain the financial dynamics of the 25-megawatt expansion with AMD, particularly regarding the contract value and CapEx per megawatt? A: Jason Les, CEO, explained that the expansion falls under the original lease with AMD, maintaining the same rental rate and terms. The difference in contract value is due to an escalator clause. The lower CapEx per megawatt is achieved by leveraging the full building preparation from the initial phase, resulting in improved yields from the original deal.
Q: How are current lease discussions progressing beyond AMD at Rockdale and Corsicana? A: Jason Les, CEO, stated that discussions have advanced considerably with substantial interest for capacity at both sites. There are no gating items, and the company is pursuing opportunities in parallel, focusing on high-quality tenants to maximize value.
Q: Can you provide details on the initial data center revenue and margins for this quarter? A: Jason Chung, CFO, explained that the data center segment generated $33.2 million, with $32.2 million from tenant fit-out services at a 5% margin. The core operating lease revenue was $900,000 with a 91% margin, expected to normalize to 80% as AMD scales operations.
Q: What is the financing strategy for the AMD lease, and how are discussions with lenders progressing? A: Jason Chung, CFO, mentioned positive feedback from lenders due to the strong cash flow profile and AMD's investment-grade status. While specific spreads were not disclosed, the financing structure is expected to be competitive with broader market rates.
Q: How do recent leadership changes impact lease discussions, and is the team equipped to handle leasing at both Rockdale and Corsicana? A: Jason Les, CEO, assured that leadership changes have not impacted discussions, with AMD's expansion as evidence. The company has a strong team in place to execute at both sites concurrently, with plans for incremental hiring as needed.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
