Engages Expert Consultants to Assess AI/HPC
Opportunities and Plans to Accelerate Engagement with Potential
AI/HPC Partners
Halts Previously Announced Phase II Bitcoin
Mining Expansion at Corsicana Facility
Believes Mixed Use of Facility Has Potential to
Maximize Value for Shareholders by Providing Long-Term, Predictable
Cash Flows to Complement Existing Bitcoin Mining Operations
Riot Platforms, Inc. (NASDAQ: RIOT) (“Riot” or “the Company”),
an industry leader in vertically integrated Bitcoin mining, today
provided an update on strategic actions it is taking to maximize
the value of its unique asset in Navarro County, Texas (the
“Corsicana Facility”).
Evaluating Development of Corsicana Facility Power Capacity
for AI/HPC Use
Riot is launching a formal process to evaluate the feasibility
of developing the approximately 600 megawatts (“MW”) of remaining
power capacity at the Company’s Corsicana Facility for artificial
intelligence (“AI”)/high-performance computing (“HPC”) uses. To
support the assessment of the feasibility of this site for AI/HPC,
Riot has engaged Altman Solon, a leading consultant to the data
center industry, and other industry experts. The Company currently
utilizes 400 MW of capacity for Bitcoin mining at the Corsicana
Facility and has up to one gigawatt of total capacity at the site
approved by the Electric Reliability Council of Texas.
As previously disclosed, Riot has been engaged in preliminary
discussions with potential AI/HPC counterparties for a number of
months. The Company is now expanding and accelerating outreach to
potential partners in the AI/HPC sector in parallel with this
feasibility analysis.
Jason Les, CEO of Riot, stated:
“Our focus has always been on maximizing the potential of our
assets and ensuring that any agreement we enter into with an AI/HPC
counterparty would be the result of an informed, thorough process
that puts the best interests of all our shareholders first. This is
why we are taking the actions announced today. While any conversion
of our existing Bitcoin mining facilities to AI/HPC use presents
meaningful challenges and investments of time, we believe there is
a significant opportunity to maximize the value of the 600 MW of
remaining capacity available at the Corsicana Facility and deliver
substantial benefit for our shareholders. We are excited to be
taking these next steps and look forward to accelerating our
process.”
Benjamin Yi, Executive Chairman of Riot, added:
“While we continue to believe in the significant upside of our
Bitcoin mining operations, we have recognized for some time the
value of having long-term, predictable cash flows from a
well-capitalized AI/HPC counterparty. We look forward to providing
further updates to our shareholders and the broader market as we
and our advisors make progress toward this goal.”
Halting Corsicana Bitcoin Mining Expansion and Associated
Impacts
In connection with its evaluation of AI/HPC opportunities, Riot
is halting the development of its previously announced 600 MW Phase
II Bitcoin mining expansion at the Corsicana Facility. Existing
mining operations, constituting the first 400 MW Phase I
development at the Corsicana Facility and Riot’s Rockdale and
Kentucky Facilities – as well as associated expansion plans at
these locations – remain in place.
As a result of this action, Riot is reducing its previously
announced total self-mining hash rate capacity growth and
associated capital expenditures for 2025 and will provide
additional updates as this review process progresses further.
Previously, the Company expected to end 2025 with a total hash rate
capacity of 46.7 EH/s, but in connection with this halt of the
expansion of Bitcoin mining operations at the Corsicana Facility,
Riot now expects to end the year at 38.4 EH/s.
The Company will continue developing the substation to support
the additional 600 MW of power capacity at the Corsicana Facility,
but now projects capital expenditures at the Corsicana Facility in
2025 will be reduced by $245 million.
There is no assurance that Riot’s existing assets are suitable
for AI/HPC conversion, that AI/HPC conversion can be achieved on
financially advantageous terms or that an AI/HPC partnership can be
negotiated on suitable terms that provide sufficient value for
shareholders.
About Riot Platforms, Inc.
Riot's (NASDAQ: RIOT) vision is to be the world's leading
Bitcoin-driven infrastructure platform.
Our mission is to positively impact the sectors, networks and
communities that we touch. We believe that the combination of an
innovative spirit and strong community partnership allows the
Company to achieve best-in-class execution and create successful
outcomes.
Riot is a Bitcoin mining and digital infrastructure company
focused on a vertically integrated strategy. The Company has
Bitcoin mining operations in central Texas and Kentucky, and
electrical switchgear engineering and fabrication operations in
Denver, Colorado.
For more information, visit www.riotplatforms.com.
Cautionary Statement Concerning Forward-Looking
Statements
Statements in this press release that are not historical facts
are forward-looking statements that reflect management’s current
expectations, assumptions, and estimates of future performance and
economic conditions. Such statements rely on the safe harbor
provisions of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Because such statements are subject to risks and
uncertainties, actual results may differ materially from those
expressed or implied by such forward-looking statements. Words such
as “anticipates,” “believes,” “plans,” “expects,” “intends,”
“will,” “potential,” “hope,” similar expressions and their
negatives are intended to identify forward-looking statements.
These forward-looking statements may include, but are not limited
to, statements relating to the Company’s development at its
Corsicana Facility and the Company’s plans, projections,
objectives, expectations, and intentions about future events and
trends that it believes may affect the Company’s financial
condition, results of operations, business strategy, short-term and
long-term business operations and objectives and financial needs.
These forward-looking statements are subject to a number of risks
and uncertainties, including, without limitation: risks related to
the Company’s growth, the anticipated demand for AI/HPC uses, the
feasibility of developing the Company’s power capacity for AI/HPC
uses, competition in the markets in which the Company operates,
market growth, the Company’s ability to innovate and expand into
new markets, the Company’s ability to realize benefits from its
implementation of new strategies into its business, estimates of
Bitcoin production; our future hash rate growth (EH/s); the
anticipated benefits, construction schedule, and costs associated
with the development of our mining facilities in Texas, Kentucky
and elsewhere; our expected schedule of new miner deliveries; our
access to electrical power; the impact of weather events on our
operations and results; our ability to successfully deploy new
miners; the variance in our mining pool rewards may negatively
impact our results of Bitcoin production; our megawatt capacity
under development; risks related to the Company’s inability to
realize the anticipated benefits from immersion cooling; the
inability to integrate acquired businesses successfully, or such
integration may take longer or be more difficult, time-consuming or
costly to accomplish than anticipated; or the failure of the
Company to otherwise realize anticipated efficiencies and strategic
and financial benefits from our business strategies. Detailed
information regarding the factors identified by the Company’s
management which they believe may cause actual results to differ
materially from those expressed or implied by such forward-looking
statements in this press release may be found in the Company’s
filings with the U.S. Securities and Exchange Commission (the
“SEC”), including the risks, uncertainties and other factors
discussed under the sections entitled “Risk Factors” and
“Cautionary Note Regarding Forward-Looking Statements” of the
Company’s Annual Report on Form 10-K for the fiscal year ended
December 31, 2023, as amended, and the other filings the Company
makes with the SEC, copies of which may be obtained from the SEC’s
website, www.sec.gov. All forward-looking statements included in
this press release are made only as of the date of this press
release, and the Company disclaims any intention or obligation to
update or revise any such forward-looking statements to reflect
events or circumstances that subsequently occur, or of which the
Company hereafter becomes aware, except as required by law. Persons
reading this press release are cautioned not to place undue
reliance on such forward-looking statements.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250121261484/en/
Investor Contact
Phil McPherson 303-794-2000 ext. 110 IR@Riot.Inc
Media Contact
Alexis Brock PR@Riot.Inc
Riot Platforms (NASDAQ:RIOT)
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