RIOT

Good day, and thank you for standing by. Welcome to Riot Platforms' first quarter 2026 earnings conference call. Please note that all participants have been placed in a listen-only mode until the question and answer session begins following the company's presentation of its prepared remarks. Please also be advised that today's call is being recorded. I would now like to hand the conference over to Joshua Kane, Head of Investor Relations at Riot Platforms. Please go ahead.

Thank you, operator. Good afternoon. Welcome to Riot Platforms' first quarter 2026 earnings conference call. My name is Joshua Kane, Head of Investor Relations. Joining me on today's call from Riot are Jason Les, Chief Executive Officer, and Jason Chung, Chief Financial Officer. On the Riot investor relations website, you can find our first quarter 2026 earnings press release and accompanying earnings press presentation, which are intended to supplement today's prepared remarks and which include a discussion of certain non-GAAP items. Non-GAAP financial measures provided should not be considered as a substitute for or superior to the measures of financial performance prepared in accordance with GAAP and are included as additional clarifying items to aid investors in further understanding the company's first quarter 2026 performance. During today's call, we will be making forward-looking statements regarding potential future events.

These statements are based on management's current expectations and assumptions and are subject to risks and uncertainties. Actual results could materially differ due to factors discussed in today's earnings press release, in comments and responses made during today's call, in the Risk Factors section of our Form 10-K and Forms 10-Q, including for the three months ended March 31st, 2026, which will be filed later today, as well as other filings with the Securities and Exchange Commission. With that, I will turn the call over to Jason Les, CEO of Riot Platforms.

Thank you, Joshua, and good afternoon, everyone. The first quarter of 2026 was a definitive inflection point in Riot's transition into one of the most significant and capable data center operators in the industry. Looking at our key milestones for the quarter. First, AMD officially exercised a 25 MW expansion option, bringing their total contracted footprint at our Rockdale facility to 50 MW and validating our ability to execute at institutional scale. Initial data center capacity for this expansion will be delivered beginning in November of this year. Second, on the initial 25 MW AMD lease, we delivered the first 5 MW of critical IT capacity right on schedule in January, with the remaining 20 MW on track for delivery this May. Third, we continue to make significant progress at our Corsicana facility.

We have initiated development of our first core and shell building using our enhanced 168 MW standard design, which efficiently consolidates our previous two building design, which will now be connected by expanded administrative capacity. Concurrently, we are also securing long lead items to ensure timely delivery of full build-to-suit capacity after the core and shell is complete. Finally, we achieved this infrastructure growth while maintaining strong capital discipline, proactively funding our data center initiatives entirely through operating cash flow and disciplined Bitcoin sales, allowing us to execute on these key growth initiatives without issuing a single share of equity. Let's dive right into the AMD expansion. When we announced the initial AMD lease in January, we signed a 10-year agreement to deliver 25 MW of critical IT capacity at our Rockdale facility with extension options that created a partnership pathway of up to 25 years.

That original lease included a 75 megawatt expansion option and a right of first refusal on an additional 100 megawatts. More recently, our partnership with AMD has expanded as they worked with our team to exercise an additional 25 megawatts of their expansion option capacity. AMD now has 50 megawatts of critical IT capacity under contract with Riot at the Rockdale facility. This expansion reflects AMD's ongoing confidence in our ability to deliver and is a clear indicator that Riot is delivering exactly as promised, on time and on budget. To summarize the economics of our expanded AMD lease today, we are delivering an additional 25 megawatts of critical IT capacity, bringing the total lease to 50 megawatts. Total revenue of $636 million during the primary 10-year period.

51 million in average annual NOI over the course of the contract, which when combined with the reduced CapEx spend, will drive an even more attractive development yield relative to the initial AMD lease. The total CapEx required for the expansion is approximately $3.3 million per MW, totaling $83.2 million. A significant reduction from the initial 25 MW CapEx of $3.6 million per MW, driven by a leaner build-out scope following building preparation in the initial phase. Slide 8 presents a clear visual of exactly how this expansion is taking shape on the ground at our Rockdale facility. On the top half of the slide, you can see the physical layout of buildings F and G. We are currently finalizing the initial 25 MW of capacity for AMD, highlighted in yellow.

We are already delivering five megawatts for AMD, with the remaining 20 megawatts firmly on schedule for full delivery next month in May 2026. AMD's 25 megawatt expansion will be developed directly adjacent to the initial AMD footprint in building G and will be constructed in 2 phases. Phase 3, highlighted in blue, will deliver 10 megawatts in November 2026, while Phase 4, highlighted in orange, represents the remaining 15 megawatts for delivery in May 2027. As a result of this phase delivery, we anticipate exiting 2026 with an annualized operating lease revenue run rate of $37.8 million, scaling to a run rate of $55.6 million as we exit 2027 and AMD's full 50 megawatt footprint comes online.

Importantly, this provides a highly visible high margin baseline that has the potential to scale up even further if AMD exercises its remaining expansion options. You can see the physical footprint of those additional options mapped out in green on the site plan. AMD retains an additional 50 megawatt expansion option, and furthermore, they now hold an additional 100 megawatt option, which replaces their prior right of first refusal. Together, this provides a highly visible, de-risked pathway to potentially scale our partnership with AMD to up to 200 megawatts of critical IT capacity at Rockdale. I want to provide an update on the development activity underway at our Corsicana campus. As a reminder, at the end of last year, we announced our plan to initiate core and shell development at Corsicana. I am pleased to report the development is actively underway and tracking on schedule.

This marks the transition of Corsicana from a site with approved power into an active data center development site. Since that announcement, our team has continued to refine our standard basis of design based on market engagement and feedback. The result is a meaningful enhancement to both the density and the flexibility of what we can deliver. Our updated standard is a 168 MW critical IT building engineered to support densities beyond 1,000 watts per sq ft. The design is configurable as a 2-story standard or a single-story high-density format with oversized galleries to accept 100% liquid cooling and the densest next generation equipment without retrofit. We are using prefabricated skids and vendor-agnostic equipment specifications to further compress our schedule and de-risk procurement.

This is a design built for repeatability, speed to market, and the requirements of the most sophisticated AI and HPC tenants in the market today. Reflecting this enhancement, we have consolidated the two buildings we previously announced into a single larger building with 168 megawatts of critical IT capacity, up from the 112 megawatts we originally planned across two buildings. The core and shell CapEx is unchanged from our prior guidance, which means we are now delivering 50% more critical IT capacity for the same capital spend. This meaningfully improves our capital efficiency at the core and shell level. Development is underway today, and we have a clear line of sight to 168 megawatts of completed core and shell in the second quarter of 2027.

Applying the updated design across the full Corsicana site, our total planned campus capacity now stands at 756 megawatts of critical IT capacity, an increase over our prior plan on the same approved power, the same land, and the same development timeline. Put simply, we are extracting more capacity and more value from the infrastructure we have already secured, and we are doing so on a timeline that matches the urgency of today's market. Now, I'd like to turn it over to Jason Chung to outline our financing strategy and review the quarterly financial results.

Thank you, Jason. Turning to how we are funding this growth on slide 11, there are four primary principles that guide our approach to financing. First, we carefully manage our current liquidity. This involves the strategic management of cash and Bitcoin holdings to finance initial equity requirements for data center development. Second, we seek to broaden capital availability. By leveraging the credit profiles of our tenants and our highly visible long-term contracted cash flows, we're establishing new institutional financing and capital sources for Riot. Third, we look to systematically lower our cost of capital. As our asset base matures, we are able to translate these strong credit characteristics and funding profiles into accretive low cost capital. Fourth, we maintain prudent ongoing balance sheet management. This requires active debt management throughout market cycles in order to cleanly recycle capital, preserve our liquidity profile and support long-term growth.

Slide 12 illustrates how these principles work in practice. Our funding strategy utilizes a sequential capital cycle to fund our data center development. In phase 1, initial development funding, we use our balance sheet to advance development as seen with the initial 25 MW AMD deployment, the just announced additional 25 MW AMD option, and the core and shell development at Corsicana. During the quarter, we funded this CapEx through a disciplined sale of a portion of our Bitcoin holdings, the most capital-efficient source of funding currently available to us. Importantly, we did not issue any common equity during the quarter. Instead, we leveraged our Bitcoin treasury and our operating cash flows to fund this development. In phase 2, tenant-backed project financing. We actively engage with multiple institutional lenders on project-level, non-recourse financing structures for the AMD lease.

The quality of the AMD lease as a long-term, high-margin lease with an investment-grade leader in the AI ecosystem makes this the type of asset that project finance markets are designed to finance efficiently. We continue to target attractive loan-to-cost ratios in the range of 80% in these structures. Once we close funding, we will be in a position to recover a substantial portion of the equity we deployed into this first set of projects. Phase 3 is the capital recycling phase, where equity we recover from either a true-up during the construction period, as in our AMD discussions, or from refinancing proceeds on completed, stabilized assets, flows directly back into the next wave of data center development. The cycle is to lease, finance, build, and recycle. As we compound through this cycle, we retain ownership of high-quality, cash-flowing assets while continuously redeploying capital to finance additional growth.

Let's move on to the 1st quarter financial update on slide 14. For the 1st quarter of 2026, Riot reported total revenue of $167 million. Notably, with the delivery of our 1st 5 MW to AMD this quarter, Riot is now an active data center operator. For the 1st time, our top line now includes contracted lease revenue from an investment-grade tenant. We recorded a GAAP net loss of $500 million, or $1.44 per diluted share, and an adjusted EBITDA loss of $311 million. This loss was driven by non-cash mark-to-market accounting adjustments on our Bitcoin holdings of $326.7 million and non-cash depreciation and amortization expense of $97.7 million, which do not reflect the underlying strong fundamental economics of our operations.

Diving into these operations, our Bitcoin mining segment performance remained robust. Riot produced 1,473 Bitcoin in the 1st quarter and ended the quarter with a deployed hash rate of 42.5 exahash. We generated $21 million in power curtailment credits, driving our net cost of power down to $0.03 per kilowatt hour, thereby lowering our direct cost to mine Bitcoin to $44,629 per Bitcoin, a 26% reduction compared to the 4th quarter of 2025. In our newly added data center segment, we successfully exited the quarter with 5 megawatts of critical IT capacity fully online and generated $33.2 million in total revenue, consisting of $900,000 in operating lease revenue and $32.2 million in tenant fit-out services revenue.

Finally, we ended the quarter holding 15,679 Bitcoin on our balance sheet, valued at approximately $1.1 billion, which we will continue to leverage in order to finance the ongoing development of our data center business. Turning to slide 15, I'm proud to present the inaugural financial results of our data center segment. In the first quarter, this segment generated $33.2 million in total revenue. As we introduce this new reporting line, it is important to understand the composition of this revenue and how it will evolve as our footprint scales. The majority of our first quarter revenue, $32.2 million, was driven by tenant fit-out services. This represents the procurement and installation of customer-specific equipment, which is reimbursed by tenants on a cost-plus basis.

While this revenue naturally carries a lower margin, it requires no capital risk from Riot and accelerates our tenants' ultimate speed to market. The fundamental value of this segment, however, is reflected in the operating lease income. We recognized roughly $900,000 in recurring lease revenue, driven by the initial 5-megawatt delivery to AMD in January, which generated a 91% gross margin this quarter. As AMD scales its operations, we expect associated operations and maintenance costs to naturally increase, which will normalize this margin towards our previously stated run rate target of 80% plus. While tenant fit-out revenue is elevated today during the development phase, as the remaining megawatts for AMD come fully online, our high-margin operating lease revenue will scale dramatically.

This will layer highly predictable infrastructure-grade cash flows into our consolidated P&L, driving significant margin expansion over time. Turning to slide 16, our engineering segment, comprised of ESS Metron and E4A Solutions, serves as a key pillar of our execution strategy. The financial metrics for engineering remain exceptionally strong. Engineering backlog stood at $193.4 million during the quarter, with approximately 90% of backlog continuing to be driven by data center sector demand. Most importantly, the apparent decline in backlog for this quarter was entirely driven by our decision to strategically hold back manufacturing capacity for deployment towards our own data center business. Since acquiring ESS Metron in December 2021, Riot has realized approximately $24 million in cumulative CapEx savings across our development footprint, and these savings will continue to compound as we further scale up.

While this compounding cost advantage is accretive, the true strategic value of our engineering business is control over procurement. Low and medium voltage switchgear, transformers, and power distribution centers are among the most severely constrained components in the data center supply chain. For developers relying on third-party manufacturers, lead times are lengthening, and these lead times have become a binding constraint on delivery schedules across the industry. Because Riot owns a dedicated switchgear and power distribution manufacturer, we can sequence, prioritize, and de-risk the schedule-critical equipment required to bring a data center online. This vertical integration was a key factor supporting our ability to deliver phase one of the AMD lease on an accelerated timeline. Looking ahead, we'll continue to invest in this strategically important business.

In 2026, we expect to increase ESS Metron's total engineering capacity by approximately 25%, and we will be strategically allocating that incremental capacity to support Riot's own data center growth. Further, because we manufacture these components in-house, we design them in parallel with our data center engineering team, allowing us to move faster and reducing redesign risk. Just as importantly, the same teams that manufacture this equipment also provide maintenance in the field, which will drive long-term operational efficiencies as our data centers are energized and stabilized. Taken together, our engineering business is a core engine of our competitive moat in a market where time to power is the single most valuable commodity. Now, I'd like to turn it back over to Jason Les.

Thank you, Jason. I want to frame one of our key competitive advantages in the broader data center development market: secured power. Today, access to power is a key bottleneck to data center development globally. This makes our large portfolio of 2 gigawatts of fully approved power a strong competitive advantage, giving us one of the most significant development pipelines in our industry. We are not stopping here. We recognize that the market demand for power is strong, and we are aggressively pursuing growth in our power portfolio across 4 distinct avenues. First, through greenfield and brownfield development, securing and developing new land assets that offer immediate or near-term approved power capacity. Second, through behind-the-meter self-generation, allowing us to strategically co-locate our own power production directly with our critical load. Third, through inorganic M&A, actively targeting and acquiring portfolios or organizations that already possess established access to power.

Fourth, through strategic partnerships, forming joint ventures to expand our geographic footprint, rapidly grow our pipeline, and explore next-generation technologies. To put the scale and rigor of this effort into perspective, our corporate development team has already evaluated over 100 distinct opportunities across these four avenues. We have the team, the capital, and the strategy to continuously source the highest quality power assets required to fuel our development pipeline. Let me be clear: while we are aggressively pursuing these opportunities, we maintain rigorous capital discipline. We will only execute on transactions that are highly accretive, financially responsible, and strictly aligned with our target return thresholds.

I want to walk through the path we have taken to get to where we are today and provide investors with a clear picture of some of the obstacles Riot has navigated in order to best position our power portfolio for maximum value creation. At the start of 2025, we engaged Altman Solon to conduct a formal feasibility study on both Corsicana and Rockdale. The conclusion was unambiguous. We had two of the most attractive data center sites in the country. The same study also identified two very specific constraints that, left unresolved, would have prevented us from leasing that power to high-quality tenants at any meaningful scale. The first was land at Corsicana, where our original footprint was insufficient to accommodate the full 1 gigawatt campus development we wanted to deliver. The second was our ground lease at Rockdale.

Until we solved both of these constraints, we were not in a position to meaningfully advance design, development, or leasing at either site. Solving these two constraints required patient, disciplined execution, and that is what we did. Over the course of 2025, we successfully navigated a series of obstacles to acquire land adjacent to our original Corsicana site, unlocking the ability to develop the full 1 gigawatt of approved power on Riot-owned land in a connected campus layout. At Rockdale, we converted our interest from a long-term ground lease into a fee simple acquisition of the 200 acres underlying the site. With those two transactions closed, we own the land, we took control over our own destiny at both sites. We removed the most significant barriers between our power portfolio and high quality contracted leases.

Critically, we did not wait for one work stream to finish before beginning the next. In parallel with the land work, we systematically built out the organization starting in the second quarter of 2025 with veteran product design and engineering talent. With the Corsicana land situation on track, we completed the initial basis of design for our standard data center product and initial campus design for the full Corsicana build-out. Through the end of 2025, we took those designs to market for direct technical and commercial feedback from prospective tenants, initiated core and shell development at Corsicana, and brought on senior commercial leadership to drive leasing execution. That disciplined sequenced groundwork is exactly what allowed us to move decisively when the opportunity arrived. In January of this year, we signed our first data center lease with AMD and delivered the initial phase of capacity within the same month.

Since that initial lease, we have expanded the AMD relationship to 50 MW, enhanced our standard design to increase density and flexibility, and are now actively engaged in commercial discussions at both of our sites. Every one of the steps on this timeline was necessary in order to maximize our value creation opportunity. Every one of them has been completed on an accelerated schedule, and the result is that we now have an active commercial pipeline underpinned by secured land, a proven design, committed capital, and a tenant relationship that is already generating revenue today. This is an excellent position to be in, and we are confident in our ability to continue to execute from here. I want to zoom in on part of that timeline and take a moment to elaborate on the team we have built to execute on this opportunity.

Over the past year, building out a world-class data center organization has been one of our highest priorities because we knew from the start that the quality of our team would be every bit as important as the quality of our assets. What you see on this slide is the depth and breadth of the capabilities we have now assembled across four pillars. Commercial sales, critical operations, project execution, and design and construction. Each of these functions is led by experienced, credentialed leadership with direct track records of delivering mission-critical infrastructure at hyperscale grade platforms. On the commercial side, our sales organization is led by Rhea Williams, our Senior Vice President of AI and Hyperscale Sales.

Rhea joined us following previous sales roles at Oracle, Compass Datacenters, and Digital Realty. She brings both the relationships and the credibility necessary to engage hyperscalers and other top-tier tenants at the highest level. Rhea directly reports to me. That reporting structure is deliberate. Our leasing strategy is the single most important driver of long-term shareholder value at Riot. Having sales report directly to the CEO ensures that I am directly engaged in every major commercial discussion. I am also very pleased to announce today a significant addition to our leadership team. Adam is a proven infrastructure executive with more than 15 years of experience leading hyperscale and AI data center development at multi-gigawatt scale.

He comes to us most recently from TA Digital Group, where he served as Senior Vice President of Design and Construction, and prior to that, he held leadership positions at both Google and Meta. Adam is exactly the caliber of leader we need at this stage of our development, and we are thrilled to have him at the helm of our design, construction, and procurement teams as we scale Corsicana, Rockdale, and our broader data center platform. Rounding out the organization, our critical operations leadership brings deep experience running mission-critical environments to hyperscale SLA standards. Our project execution team combines in-house high voltage and procurement expertise with integrated program management across our development pipeline. Every one of these functions is supported by Riot's broader enterprise platform, including our vertically integrated engineering capabilities at ESS Metron and E4A Solutions.

The result is a data center organization that is experienced, credentialed, and deep. This is a team that is already delivering for AMD at Corsicana and across the leasing discussions underway today. We have the right people in the right seats to execute on the opportunity in front of us, and our confidence in this team is reflected in the pace of progress you are seeing across our business. I want to close by putting this quarter into perspective. Riot has 4 things that, in combination, are extraordinarily difficult to replicate. We have the assets. 2 GW of utility power, including 1.7 GW of fully approved energized capacity at two of the most attractive data center development sites in the U.S. We have the balance sheet.

A 15,679 Bitcoin treasury worth roughly $1.1 billion at quarter end, significant cash on hand, operating cash flow from efficient low-cost mining operations, and strong capital markets relationships give us the ability to fund our growth on value-accretive terms. We have the team. Our in-house data center organization includes veteran leadership across product design, construction, engineering, sales, and operations, and they are delivering on the AMD lease, developing our data center product, building Corsicana, and advancing our next wave of leasing discussions. We have a repeatable approach. Our power first strategy, lease to credit-worthy tenants, finance efficiently, build with discipline, recycle capital, is designed to compound through multiple deals and multiple sites. Our priorities for the balance of 2026 are clear. First, deliver contract and megawatts to AMD on schedule and on budget.

Second, execute on additional leases at both Rockdale and Corsicana with active discussions underway across hyperscale and other high-quality tenants. Third, advance core and shell development to support delivery of tier-3 built-to-suit data center capacity. Fourth, secure attractive low-cost financing that reflects the quality of our tenants and sites. Fifth, continue to selectively grow our power pipeline through greenfield and brownfield development, self-generation, partnerships, and targeted acquisitions. The opportunity in front of us is significant. Data center demand continues to grow rapidly, driven by the commercialization of AI and the accelerating need for high-density compute. Power, execution talent, supply chain access, and capital discipline remain the binding constraints and timelines for new capacity continue to extend. Riot sits on the right side of both of these trends with energized, fully approved power in exactly the right markets and with a built-out operating model that is delivering.

The AMD expansion is a direct reflection of that position. It is, we believe, just the beginning. As we continue to convert megawatts into contracted data center leases with creditworthy tenants, we expect the market to increasingly recognize the quality, scale, and cash flow visibility of our platform and to rerate Riot's valuation accordingly. On behalf of our entire management team, I want to thank our shareholders, our partners, and our employees for their continued support as we execute on this opportunity. With that, we will now open the call up for questions. Operator.

Thank you. As a reminder to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Due to time restraints, we ask that you please limit yourself to one question and one follow-up question. Please stand by while we compile the Q&A roster. Our first question will come from the line of Paul Golding with Macquarie.

Thanks so much, congrats on all the progress this quarter. I just wanted to ask a couple questions. First question, on the 25 megawatt expansion with AMD. I was just hoping you could talk through some of the puts and takes. It looks like the total contract value per for across the 25 megawatts is up versus the initial lease, while, as you noted, the CapEx per megawatt is down due to a leaner build-out. I was wondering if you could just give some color on those puts and takes on how you were able to realize a better TC-- TCR, TCV versus a leaner build-out and better CapEx profile. Then I have a follow-up. Thank you so much.

Sure. Thanks, Paul. This expansion falls under the original lease that we executed with AMD earlier this year. It is the same rental rate in terms. I think the only reason you may be seeing a difference there is that there is an escalator clause in our agreement, and this new agreement, you know, runs after over the course of those escalators occurring. It is otherwise, like, substantially the similar terms, similar rates, all of that. The only economic difference really is that lower build-out cost that you mentioned, and we're able to achieve that lower build-out cost because we're leveraging the full building preparation that was already done in the original phase. When we did the first 25 MW, we had to prepare that full building, and that had some additional expense.

Now when we exercise, execute on the next 25 MW expansion, completing that building out, we don't have to do that work over again. Lower cost by leveraging additional work and substantially the same better terms. As you see in our slide, you combine all of these factors together and you're having a lower build cost, a slightly higher contract value, and altogether an actual even improved yield from our original deal.

Great. Thanks, Jason. Maybe a two-part follow-up just on the back of those comments. It does look like it may be a bit of a longer build-out period for that 25 MW expansion. Can you talk to that and also the ROFR piece that was converted to an option just as a follow-up to that? I know there's another 50 MW in that original option, as well as the 100 MW ROFR, but just to understand how that converted as well as some of the time considerations with the expansion. Thanks so much.

This is a pretty fast timeline to deliver capacity. You know, you see we're signing this deal, we're announcing this deal here in April, we're delivering this at the end of October, beginning of November. Pretty quick timeline here. To give you some color, when we did the first 25 megawatts for AMD, we were making progress on that schedule before the lease was signed. We were taking some calculated risks, manageable risks, to be prepared and to get that first lease off the ground. With this expansion, you're really seeing the whole process from the beginning. What that means is this schedule is really broadly in line with the build schedule that you saw in the first phase. Difference being we just weren't able to announce that until farther along in the process.

As far as the expansion option and the ROFR goes, from the very beginning here, we said that we viewed our initial deal with AMD to be the beginning of a larger partnership. The best way that we at Riot can achieve that is by being a consistent and reliable partner for AMD. In doing so, we position ourselves as their preferred supplier of choice. By continuing to doing what we're doing, we believe that we are positioned to continue to grow that relationship. I think the fact that AMD has exercised part of its option so quickly, just a few months after the initial deal, I think that demonstrates that we are succeeding at our goal with growing this relationship. More specifically on the ROFR here.

We converted the ROFR to an option really just to simplify the pathway of expansion of the lease with AMD. We want to advance this relationship, AMD wants to advance this relationship, and we want to have a simple pathway to do that. Having an option instead of a ROFR really gives them what they really wanted, and that worked better for us. With the pace of interest at Rockdale, and in addition to Corsicana, it was better for us to have a defined mechanism for what AMD is looking for instead of having to call that ROFR on terms or on a design that's different than what AMD's needs are. We simplify our discussions with other potential tenants while also simplifying the pathway for expanding the relationship with AMD.

That's how we were thinking about changing this ROFR to this option.

Got it. All very clear. Thank you so much. Congrats again.

One moment for our next question. That will come from the line of John Todaro with Needham. Your line is open.

Hey, guys. Thanks for taking my question, and congrats on the additional capacity with AMD. Was wondering if we could get an update on current lease discussions, maybe beyond AMD on Rockdale and Corsicana, how you would characterize how those have progressed since last quarter, if there's been any kind of sticking points or gating factors in those conversations. I have a follow-up.

Yeah. Thank you for the question. Over the past few quarters, we've laid out the roadmap that we've been on to execute a commercial process. What we've done is completed the foundational work that we needed to fill the gaps that we had, we talked about that on the timeline slide, and bring a strong offering to the types of counterparties that we want to lease to. As a result of this preparation, we are able to act on the substantial interest that I kind of got into on our last earnings call, and those discussions have advanced considerably since then. We're in a great spot. There are no gating items or issues here. We are moving forward. We have interest for capacity across both Corsicana and Rockdale, and we are pursuing those opportunities in parallel.

On leasing, our philosophy has always been to focus on high-quality tenants that can drive the financing terms that maximize value. The feedback that I can give you is the type of engagement that we're getting has really validated the methodical approach that we've taken. Our ability to succeed in this commercial process is really enhanced when we're going through an onboarding process with a hyperscaler, and we can check the box affirmatively on the vast majority of the hundreds of requirements that they have. That is the result of preparation. Leasing this type of capacity to top-tier tenants, that is an enormous lift, and that can have an unpredictable timeline. We've seen some of our peers comment on having multiple deals start or stop or fall through before 1 got to the finish line.

While it's an unpredictable process, I can tell you that I am more confident than ever at our ability to succeed here based on the progress we've made and based on the type of engagement that we're getting. All of this to say, I can't tell you when our next lease will be signed, but I can tell you that I believe you will continue to see us make progress over the roadmap that we've laid out, ultimately culminating in a full lease-up of our capacity.

That's great. Thanks for that. If I could just get a follow-up on maybe, kinda just, I guess, more broadly kinda demand signals. Do you think we've kinda seen fewer leases in the public market so far than I think maybe some investors expected in 2026? I guess, is there anything maybe beyond your conversations where there is changes in demand signals or something of that nature in the last, you know, several weeks or months or anything that we could call out?

We see the broader theme of data center demand outpacing supply continuing, and we see that theme continuing for the foreseeable future. The fact is that the commercialization of AI is rapidly advancing, and everyone is going to continue to be short on compute because of the data center capacity that's required to support that. I think that theme was evident on all of the hyperscale hyperscaler earnings calls yesterday, where hyperscalers are growing CapEx, and they are all short on compute and capacity, and identified as a key thing that's keeping some CEOs up at night. That theme remains intact. Each buyer is always in a different phase of their own buying cycle, and at different times, different companies are in a more urgent state than others.

You can imagine, in this rapidly changing environment that AI is driving, this cycle is running through much quicker than it has historically. You're always going to be seeing the same level of urgency, across the field, that field will kind of just completely change from one quarter to the next as different companies are in different parts of their buying cycle. The important thing is that we at Riot, we've built a structure where we can come fully prepared and rapidly respond and engage as customer interest comes forward. That means that we are positioned to respond and work with what the market is bringing us, whether it's a reliance on our standard design or specific requirements that our design can easily accommodate. Our preparation is paying off, we are in the right market at the right time.

That's very helpful. Thanks for taking my questions, and congrats again.

Yeah.

Thank you. One moment for our next question. That will come from the line of Mike Grondahl with Northland. Your line is open.

Hey, thanks, guys. Can you talk about some of the initial data center revenue this quarter, how that related to the initial 25 megawatts you're delivering, and how to think about margins this quarter and going forward?

Hey, Mike, thanks for the question. This is Jason Chung. Maybe I'll take a stab at that one. To get a clear picture of our initial data center financials, it's important to break down the total segment revenues that we reported of $33.2 million for the quarter, because there's really two distinct revenue streams at play here. First, the vast majority of that total top line, $32.2 million, relates directly to tenant fit out services, which we execute on a cost-plus basis. This generated $1.4 million in gross profit at about a 5% margin. That being said, I think the remaining and more interesting data point is really around the core operating lease revenue, which came in at $900,000 for the quarter.

This reflects a little over two months of revenue from that initial 5-MW delivery to AMD, which occurred in late January. Regarding your question on margins, the margin on that core operating lease component for this quarter was 91%. That 91% is a function of being in the early stages of AMD's ramp up at Rockdale, and that means there's relatively lighter operating costs during those initial two and a bit months. As AMD scales into their full capacity and site operations mature, we expect that O&M costs will naturally scale in line with that ramp up. That'll drive NOI margins towards that targeted 80% range that we put out there publicly before. We think that'll happen as we close out Q3 and head into Q4.

Got it. Then maybe one more for you, Jason. Can you talk a little bit about the financing structure you envision for AMD and I don't know, initial conversations you've had with lenders?

Absolutely. Initial feedback has been really positive on the AMD financing, and that's really based on the strong cash flow profile of the lease, the attractive and high development yield, as well as just the overall strength of having AMD as an investment-grade tenant there on site. While I can't really comment on the specific spreads at this point, we believe that the overall structure of the deal and the combination of the relative lack of supply of AMD debt in the market today support spreads that will be highly competitive with what we're seeing across the broader financing markets.

Got it. Thank you, guys.

Thank you. One moment for our next question. That will come from the line of Stephen Glagola with KBW. Your line is open.

Hey, thanks for the questions. Just two parts from me also. With the recent changes in leadership on the data center side, has that had any impact on lease discussions you're having with hyperscalers or potential tenants in general? Second, I guess sitting here today, do you feel you've got the team in place to simultaneously advance leasing efforts at both Rockdale and Corsicana? Thank you.

Thanks for the question, Stephen. One of my ongoing responsibilities as CEO is to ensure that we have the right leadership structure and right team in place to execute on our strategy. To do that, we are constantly looking at how we are organized and where additional talent can enhance our ability to succeed. Bringing in leaders like Adam Black to lead design and construction is a perfect example of that philosophy in action. You can imagine this is not something that happened overnight. It was some time in the making, and it was the right move in order to enhance our leadership structure. These changes have had absolutely no impact on development or commercial discussions, and I think our continued rapid delivery for AMD and them deciding to exercise part of their option is a perfect example of that.

I think, further as we continue to make progress, that will become even more clear. For the second part of your question, do we feel that we have the right team in place right now? I believe we have an extremely strong team in place to execute at both Rockdale and Corsicana concurrently. The reason I say that is because we're doing that right now. From a design, construction, commercial sales, critical operations, project execution perspective, we have an incredibly strong leadership team assembled, they are all working hand in hand to advance on our strategy, we're very, very proud of that. You can, you know, definitely expect some incremental hiring for support roles in those different departments in the future.

You know, our team is gonna continue to scale as our business does, but the core leadership structure has been built, and that's the team that's executing today.

Thank you.

One moment for our next question. That will come from the line of Brett Knoblauch with Cantor Fitzgerald. Your line is open.

Hi, guys. Thanks for taking my question. I know last quarterly you talked about conversations or customer conversations for taking down the entire site. I'm curious if that is still the case. Do you have a preference if it's single tenant or multi-tenant? Maybe as a follow-up on the procurement process for the core and shell, you know, I guess, power where you at on that as well as the procurement process for what would come after the core and shell.

Sure. Thanks, Brett. your question on the majority of the conversation still around the entire site, yes, that still remains the case. That is probably our preference. I wanna emphasize that we still have the ability to accommodate multi-tenant if that is the way that things go. The only reason I say that is because at a potential of 756 megawatts of leasable capacity, Corsicana is a huge deal. We have not seen any deals signed by our peers at that scale. That is the opportunity for us. That's a fantastic asset for us. It also means that is a big bite to chew for tenants who would be committing to a multi-year deployment schedule at a huge scale. Think that still remains the case. The majority of the interest is for the full site.

That's the same as the commentary I gave on our prior call. I'm just giving you some color on the multiple potential outcomes that this can still take. Still substantial amount of interest, and we're very excited about that. On to your question about procurement. We previously secured and have actually already begun receiving the necessary substation equipment, so we are in a terrific position on the long lead equipment for core and shell. At this point on the core and shell development, it's largely an exercise in mobilizing labor. To that effect, I'm very happy to share that we've secured a general contractor for this phase of the development, and they are executing.

In fact, this is the same general contractor who executed and is executing for us with AMD on a very accelerated timeline, so we feel great about this partnership. Beyond core and shell, talking about the tier-3 eventual build-out of the site, yes, we have been securing long lead equipment for that. When I say long lead equipment, I'm talking about backup generators, chillers, and as Jason mentioned in the prepared remarks, ESS Metron scaling up and preparing capacity for Riot use. All of this procurement is a result of our confidence in how our strategy is progressing. We're doing all of this to ensure that we have an attractive offering on an attractive timeline. You can read into why we are making the moves that we are about this procurement.

We feel good about the progress, that we're making with procurement and, development remains on schedule.

Awesome. Thank you so much, guys. Congrats on the quarter.

Thank you. One moment for our next question. That will come from the line of Brian Dobson with Clear Street.

Hey, thanks so much. Just one more follow-up on financing in general. You know, Bitcoin sales have been a big part of your upfront financing. Do you expect that to continue? Would you elaborate on your view of, call it long-term debt financing and how that fits into your broader strategy moving forward?

Let me turn that question to Jason Chung.

Sure. Hey, Brian. That's correct. Right now, our Bitcoin treasury and operating cash flows remain the most capital efficient, non-dilutive sources of funding available to us. As a reminder, we executed our Q1 development entirely without issuing any common equity. I think looking ahead to our broader financing philosophy as our leasing pipeline scales, we recognize that establishing deep, diversified access to capital is critical. We're in active discussions with capital markets participants, and we're evaluating a wide spectrum of debt options, ranging from asset-specific project financing to broader corporate debt markets. To be clear, we're not looking to push all of our future growth through a single financing channel.

We fully expect our long-term capital structure is going to utilize a mix of different instruments. The specific path we take for any given project is going to be completely dependent on the dynamics of that particular underlying lease, the credit profile of the tenant, prevailing market conditions at the time, and Riot's own needs. I think regardless of whether a specific project is funded through project finance or capital markets or otherwise, the mechanics are gonna remain the same in that the debt is going to be supported by long duration, highly visible cash flows from investment-grade tenants in line with our leasing strategy. By maintaining a strong balance sheet today, what we're trying to do is preserve the optionality to tap into the right market with the right instrument at the right cost of capital for every future lease.

Yeah. Thanks so much for the color.

Thank you. One moment for our next question. That will come from the line of Nick Giles with B. Riley Securities. Your line is open.

Thank you, operator, and good afternoon, everyone. This is Henry Hurll on for Nick Giles. I wanted to ask about the potential cadence of AMD's remaining 150 MW expansion option. Is there a date where the options expire? I see the illustrative chart on slide 22, which shows that the 2nd 100 MW tranche is contingent on power availability, what does that exactly mean? Thanks.

The cadence of expansion with the AMD lease, that's really going to be driven by them. You know, like I said in the earlier question, what we are going to do is continue to be good partners, deliver capacity, and ensure that we are the first call that they make when they are looking to expand capacity. As far as the mechanics of the options, the new 100 MW option is conditional on them first utilizing all of the first option, which now is 50 MW remaining. You know, as far as some of the details of when that of how that option works, you know, there's some confidentiality to this agreement, so I don't want to elaborate too much more than that.

You know, one thing I'll comment on is this original lease in the expansion, you know, it clearly goes into these two buildings that we already have there, buildings F and G. For the next 100 MW, that would require a new building or capacity being developed. You know, I would say just stay tuned as, you know, we work on those plans and that development pipeline comes together.

Got it. Then, for my follow-up, in regards to your pipeline and the four different growth options, which one do you guys favor most? Out of the 100+ opportunities referenced in your prepared remarks, were those mostly greenfield and brownfield, behind the meter, M&A, or JVs?

I think in this environment where power is so constrained, I don't think you can have a preference. We laid out that slide because we are pulling on every lever possible to build our pipeline. As we advance our commercial discussions at Rockdale and Corsicana, this pipeline becomes even more important because that means we've built the base of our business with these huge core assets, and now we're thinking about how we are continuing the story and the strategy from there. Our philosophy is, in this environment, it's going to require creativity, and it's going to require being open-minded to all sorts of those options. I think they all have merit. They all have the pros and cons, and I think you can expect to see a little bit of everything as we progress in building our pipeline.

Got it. Thanks for the color, and continue best of luck.

Thank you. That is all the time we have today for our question and answer session. I would now like to turn the call back over to Mr. Jason Les for any closing remarks.

I wanna thank everyone for tuning in to our call today, investors, shareholders, analysts and partners. We are incredibly excited about the progress we've made and the position that we're at today. I think we can say we have more confidence than ever right now, and we are very excited to continue sharing progress as we make it. We will see you on our next earnings call, if not before.

This concludes today's program. Thank you all for participating. You may now disconnect.

Good day, and thank you for standing by. Welcome to Riot Platforms Fiscal Year 2025 Earnings Conference Call. [Operator Instructions] Please also be advised that today's call is being recorded. I would now like to hand the conference over to Joshua Kane, Head of Investor Relations at Riot Platforms. Please go ahead.

Thank you, operator. Good afternoon, and welcome to Riot Platforms Fiscal Year 2025 Earnings Conference Call. My name is Josh Kane, Head of Investor Relations. And joining me on today's call from Riot are Jason Les, Chief Executive Officer; and Jason Chung, Chief Financial Officer. On the Riot Investor Relations website, you can find our fiscal year 2025 earnings press release and accompanying earnings presentation, which are intended to supplement today's prepared remarks and which include a discussion of certain non-GAAP items. Non-GAAP financial measures provided should not be considered as a substitute for or superior to the measures of financial performance prepared in accordance with GAAP and are included as additional clarifying items to aid investors in further understanding the company's fiscal year 2025 performance. Forward-looking statements may include, but are not limited to, statements that predict future events or trends, forecast for performance and may contain words such as believe, expect, intend, project, plan, words or phrases with similar meaning. Actual results could materially different due to factors discussed in today's earnings press release and comments and responses made during today's call and in the Risk Factors section of our Form 10-K for the year ended December 31, 2025, which will be filed later today as well as other filings with the Securities and Exchange Commission. With that, I will turn the call over to Jason Les, CEO of Riot Platforms.

Thank you, Josh. 2025 was a transformational year for Riot Platforms. It was the year we fundamentally repositioned this company to be at the forefront of the data center industry. Today, I am exceptionally proud to share the significant milestones we have achieved and outline the path forward as we continue executing on our strategy to maximize the value of our power portfolio for shareholders. Riot has evolved from a Bitcoin Mining company with data center potential into a proven data center developer with a track record of rapid execution. I'd like to take a minute now to walk through some of the key achievements that made 2025 truly transformational for Riot. We completed the fee simple acquisition of our Rockdale site, securing 200 acres of critical land now under our full ownership. We also completed our basis of design platform that positions us to deliver data center capacity at the scale and speed the market demands. We built substantial internal expertise by recruiting veteran data center talent across every critical function. Our team now includes leadership across product development, construction, engineering, sales and marketing with collective experience completing over 200 data center projects totaling nearly 4.8 gigawatts of design and construction experience. This depth of experience is critical. It's what enabled us to give prospective tenants confidence in our ability to deliver mission-critical infrastructure on aggressive time lines. Data center development talent is in high demand, and we are incredibly proud of the depth of capabilities and experience that we have been able to attract to Riot. The quality of our data center team is a critical advantage in ensuring that potential tenants and partners are confident in our ability to deliver at scale. We have also significantly expanded our land portfolio to support full utilization of our approved power capacity. We acquired 3 additional parcels adjacent to and near our original Corsicana site, bringing our total land footprint at Corsicana to approximately 900 acres. This acquisition simplifies and expedites the planned development of our full 1 gigawatt of approved power capacity at Corsicana, all on Riot-owned land in a connected campus layout. In the fourth quarter of 2025, we closed on the previously leased 200-acre Rockdale site for a total consideration of $96 million, funded entirely through the sale of approximately 1,080 Bitcoin from our balance sheet. This purchase was a strategic imperative, converting our interest from a ground lease to full ownership unlocked our ability to develop data centers at Rockdale and eliminated approximately $130 million in future rental payments that would have been due over the remaining lease term and extension options. And finally, we completed our standard basis of design, which was a critical step in engaging potential tenants on both technical and commercial discussions. Together, these achievements have positioned Riot for substantial data center development in 2026 and beyond. On the leasing front, we announced our first lease with AMD in January of 2026, demonstrating Riot's capabilities as a credible developer and operator. When a company of AMD's caliber chooses Riot for mission-critical infrastructure, it sends a clear signal to the market about the strength of our capabilities and our team. Our focus for 2026 is clear: one, the delivery of the full 25 megawatts of compute for our AMD lease; two, executing on additional leases at both Corsicana and Rockdale, beginning with the development of our first core and shell at Corsicana; and three, secure attractive low-cost financing that reflects the quality of our tenants and sites. We now have active discussions ongoing with multiple high-quality tenants who have expressed strong interest at both our Corsicana and Rockdale sites. The absolute certainty to large-scale power our sites offer is incredibly rare in today's market and has led to numerous interested parties actively engaging. Our sales strategy accommodates leasing outcomes that result in either single tenant or multitenant campuses at both locations, maximizing our flexibility. On the development front, our execution is already speaking for itself. We delivered the initial phase of power capacity to AMD on time and on budget, and we are already generating revenue. In an industry where delays are common, delivering on time to a world-class tenant is a powerful validation of our execution capabilities. Core and shell development is underway and progressing at Corsicana. Our Corsicana substation expansion remains on schedule with total power capacity reaching 1 gigawatt over the next 12 months. On capital management, Riot is maintaining a disciplined front framework to efficiently fund our data center business. We are activating our strong balance sheet to fund upfront development costs without relying on dilutive equity financing. We will efficiently access project finance and debt capital markets to deliver on high credit quality leases. Upon stabilization of our assets, we plan to refinance with permanent debt to recycle capital into higher return projects, creating a compounding flywheel of development. Initial work is underway to assess financing options for the AMD lease, including additional capacity for future potential expansions in anticipation of AMD exercising their options. Moving to Slide 8. I want to underscore the philosophy driving our leasing strategy. We are not simply looking to fill capacity. We are focused on strong high creditworthy tenants to match our high-quality assets. The reason for this focus comes down to capital efficiency and asset valuation. In the digital infrastructure space, cost of capital is highly correlated to the credit quality of the tenant, often pricing off the back of their underlying credit rating. By partnering with highly creditworthy counterparties, we secure the most favorable, lowest-cost financing available in the market. This minimizes our equity investment requirements and maximizes our return on invested capital. From a capital markets perspective, this also drives premium valuation multiples, leading to significant value creation for our shareholders. The AMD lease serves as a validation of our strategy. AMD is a global leader in the AI ecosystem with an S&P credit rating of A and to have a tenant of AMD's caliber entrust Riot to deliver mission-critical infrastructure sends a definitive message to the broader market. This message is that our team, our sites, and our execution strategy are operating at the highest possible level and this paves the way for ongoing discussions with other high-quality partners. Now I'd like to pause and highlight the importance of the achievement that Riot has made. We have successfully commenced Phase 1 of the AMD lease on schedule in January and remain on track to deliver Phase 2 as planned in May. This execution validates the capabilities of our data center team and demonstrates our ability to meet the demanding time lines of premier technology tenants. The speed of our execution was remarkable. We announced the lease in January and delivered the first phase of capacity within the same month, which is something that traditional greenfield developers simply cannot match. We are delivering capacity in 2 phases to derisk execution. The first 5-megawatt phase was delivered and commenced rent in January of 2026. The remaining 20 megawatts will follow in May 2026, bringing the total initial deployment to 25 megawatts of critical IT load. The capital required for this initial deployment is approximately $90 million, which translates to roughly $3.6 million for critical IT megawatts, significantly below what traditional new build projects typically require. The expansion potential is significant. AMD holds an option to expand by an additional 75 megawatts of critical IT load, which can be accommodated within the remainder of Building G and Building F using the same capital-efficient retrofit model. Beyond that, AMD holds a right of first refusal on an additional 100 megawatts of capacity. If AMD were to fully exercise both the expansion option and the ROFR their total footprint at Rockdale would reach 200 megawatts of critical IT load. This slide reviews the key terms of our previously announced deal. With this lease, we have entered into a 10-year agreement to provide customized data center space at our now fully owned Rockdale site. The lease includes 3 5-year extension options, creating the potential for a 25-year partnership. From a financial perspective, the total contract value for this initial 25-megawatt deployment over the 10-year base term is $311 million. We expect this to generate average annual net operating income of approximately $25 million, representing highly visible contracted cash flows with an investment-grade counterparty. Our Power First strategy underpins everything we do at Riot. The majority of Riot's operating power capacity is currently monetized through Bitcoin Mining, which generates strong cash flows to support our operations and development activities. Going forward, we will continue to convert power capacity and pursue data center leases that maximize value for our shareholders. The AMD lease demonstrates this strategy in action. We leveraged existing infrastructure to deliver at speed and at scale, translating into highly profitable and predictable long-term contracted cash flows with an investment-grade counterparty. The economic comparison is compelling. The AMD lease generates 2.5x more gross profit per megawatt than Bitcoin Mining. This economic framework will guide our capital allocation decisions going forward, where we can generate higher risk-adjusted returns through data center leasing with creditworthy counterparties. We will prioritize data center development, where Bitcoin Mining remains the highest and best use of our power, we will continue mining while remaining flexible to convert that capacity to data center use. Slide 14 highlights the significant scale and quality of Riot's power portfolio in Texas. Riot has 1.7 gigawatts of fully approved firm power across our Corsicana and Rockdale sites. This is not a prospective pipeline or speculative capacity, but rather power that is in use and available for development and utilization today. At Rockdale, we have 700 megawatts of total approved capacity. This power was originally approved in the fourth quarter of 2019 and energized in the second quarter of 2020. In fiscal year 2025, we had an average load of 351 megawatts at Rockdale. The site features a direct non-interruptible evergreen connection to the grid with no intermediaries between Riot and the utility, supported by a 700-megawatt substation already on site and operating. At Corsicana, we have 1,000 megawatts or 1 gigawatt of total approved capacity. This power was approved in the fourth quarter of 2022 and energized in the second quarter of 2024. In fiscal year 2025, we had an average load of 335 megawatts at Corsicana. The substation expansion remains on schedule to deliver our full 1 gigawatt of capacity over the next 12 months. Both Rockdale and Corsicana are fully approved sites with firm power located in some of the most attractive data center markets in the country. This distinction gives us a major competitive advantage in today's power constrained environment. Current time lines to procure new power within the Texas triangle are estimated at 4 or more years. So having large-scale energized power today in the right locations is extraordinarily valuable. This scale of energized power is an extremely high demand asset and forms the foundation of our financial profile. I will now turn the call over to Jason Chung to present our fiscal year 2025 financial update.

Thank you, Jason. For fiscal year 2025, I am excited to present Riot's financial results, which demonstrate both the strength of our operating model and the significant progress we have made in positioning the company for long-term value creation. For the full year, Riot reported total revenue of $647 million, representing a 72% increase year-over-year. This substantial growth was driven primarily by strong performance in our Bitcoin Mining business, which contributed $576 million or 89% of total revenue and supported by our Engineering and other revenues, which contributed an additional $71 million or approximately 11% of total revenue. Our Bitcoin Mining business achieved its highest annual revenue and gross profit on record with fiscal year 2025 revenue of $576.3 million and gross profit of $294 million when including power curtailment credits. This performance reflects the scale and ongoing efficiency improvements in our operations, including our industry-leading power strategy. Net loss for the year was $663 million or $1.95 per diluted share. Now it's important for investors to understand the components behind this result. This net loss reflects several significant noncash charges and mark-to-market pricing adjustments on Bitcoin held on our balance sheet, including depreciation and amortization expense of $346.8 million, stock-based compensation expense of $125.7 million, a $158.1 million loss on contract settlement with Rhodium and unrealized mark-to-market adjustments on our Bitcoin holdings of $115.9 million as required by FASB accounting standards. Non-GAAP adjusted EBITDA for the year was $13 million when adjusted for noncash and unusual items. Non-GAAP adjusted EBITDA eliminates the effects of certain noncash and nonrecurring items that do not reflect our ongoing strategic business operations. and provides investors with a clear view of our underlying operational performance. Our net cost of power for 2025 was $0.037 per kilowatt hour, representing one of the lowest power costs in our industry. Our power strategy generated power curtailment credits totaling $56.7 million for the full year, equivalent to nearly $10,000 per Bitcoin mined. This power strategy remains a critical competitive advantage for Riot. Turning to our Bitcoin Mining operational metrics. We produced 5,686 Bitcoin during 2025, equivalent to production of 15.3 Bitcoin per day on average. This represents an 18% increase compared to the 4,828 Bitcoin we produced in fiscal year 2024. We ended the year with 18,005 Bitcoin on our balance sheet with a year-end value of $1.6 billion based on the closing price of $87,498 per Bitcoin on December 31, 2025. Our hash rate deployed reached 38.5 exahash by year-end, accounting for approximately 3.5% of the global network hash rate. This represents a 22% increase from the 31.5 exahash we ended fiscal year 2024 with, approximately matching the pace of global network hash rate growth and maintaining our significant share of the overall network. Our cost to mine per bitcoin was $49,645 for 2025. While this increased from $32,216 in 2024, it's important to contextualize this in the broader industry environment. The average global network hash rate increased 47% year-over-year, from 630 exahash to 923 exahash. Despite the significant increase in network difficulty our vertical integration and power strategy continued to drive industry-leading cost efficiency relative to our peers. Hash rate utilization averaged 87% for the year, a significant improvement from 70% utilization in 2024. This improvement reflects the operational excellence initiatives our teams have implemented across our facilities. Our Engineering business continues to demonstrate significant strategic value for Riot and represents a key component of our vertical integration strategy. Engineering backlog reached a record $224.6 million at the end of 2025, up dramatically from $55.9 million at the end of 2024, representing a 302% increase over the course of the year. The data center sector represents 90% of our current backlog, reflecting both the strength of industry demand and the positioning of our Engineering business to capture it. ESS Metron manufactures low- and medium-voltage switchgear and power distribution centers. These are components that are essential for data center development and power distribution. As industry analysts have noted, transformer and switchgear lead times have quietly become one of the defining constraints in modern data center development. These are the hidden bottlenecks shaping 2026 project schedules industry-wide. Our Engineering business creates significant operational advantages for Riot. By vertically integrating the manufacturing of these critical components, we reduce procurement risk improve speed to market and maintain control over equipment that is in short supply across the industry. Additionally, our servicing and maintenance expertise improved start-up and commissioning processes, enhances uptime, and extends the life cycle of our equipment. This work generates significant CapEx savings across Riot platforms development activities. Since our acquisition of ESS Metron in December 2021, Riot has already realized $23.2 million in cumulative CapEx savings on equipment purchases alone. And we expect these synergies to continue to scale as we expand the scope of our data center development further. With that, I will now turn the call back over to Jason Les to discuss how all this translates to Riot's valuation rerating opportunity and our path forward.

Thank you, Jason. Slide 19 presents enterprise value per megawatt multiples across selected peers in our sector, which we view as a useful lens for how the market values power portfolios today. Riot currently trades at approximately $2.2 million for 2027 available megawatt. This represents a significant discount compared to peers with signed data center leases despite us having 1 of the largest fully approved and readily available power portfolios in the industry. We do not just view this as a discount. We view this as a clear road map for shareholder value creation. The signing of our AMD lease is the first milestone towards a rerating of the underlying value of our power portfolio from a data center perspective. As we continue executing our data center strategy and converting additional megawatts into contracted data center leases with creditworthy tenants, we anticipate the market will increasingly rerate the value of our assets leading to multiple expansion on our valuation. I want to conclude today's call by reinforcing why we believe Riot is uniquely positioned to create substantial long-term value for our shareholders. The opportunity in front of us is significant. Data center demand continues to grow rapidly, driven by the AI revolution and the accelerating need for high-density compute. At the same time, power remains the binding constraint with time lines for new capacity extending further every year. Riot is on the right side of both of these trends. We control one of the most compelling fully approved power portfolios in North America located in exactly the right markets and available for development today. Our Rockdale and Corsicana campuses with a combined 1.7 gigawatts of firm energized power, give us a scalable strategic platform that is exceptionally difficult to replicate. As we execute our strategy, we are aiming to systematically convert that power into long-term contracted data center cash flows with creditworthy tenants. The AMD lease is an important proof point of this approach. It validates our team, our sites and our development model, and it is the first step in building a diversified portfolio of high-quality leases that can support potential portfolio NOI in the range of $1.6 billion to $2.1 billion upon full buildout. Our focus from here is clear, continue to execute with discipline, deepen and expand our tenant relationships, secure attractive long-term project financing and recycle capital into the next wave of development. As we demonstrate repeatable execution of this model, we expect the market to increasingly recognize the quality and scale of our platform and to rerate Riot valuation to better reflect the strength of our underlying assets and contracted cash flows. We are in the early innings of transforming Riot into one of the most meaningful digital infrastructure platforms in the industry. On behalf of our entire management team, I want to thank our shareholders, our partners and our employees for their continued support as we execute against this opportunity. Before we open the line for questions, I would like to take a moment to recognize an important leadership transition at Riot. First, I want to sincerely thank Colin Yee for his leadership and service as our Chief Financial Officer since 2022. Colin has played a vital role in strengthening Riot's financial foundation, building out our internal reporting infrastructure and guiding the company through several key phases of growth. We are grateful that Colin will continue to support Riot as a senior adviser, and we look forward to benefiting from his counsel as we execute on our long-term strategy. At the same time, I am very pleased to officially welcome Jason Chung as Riot's new Chief Financial Officer. Jason joined Riot in 2022 as our Head of Corporate Development and brings nearly 2 decades of experience in investment banking and corporate finance. And he has already been instrumental in shaping our capital market strategy, corporate development, and investor relations efforts. Consolidating our finance and strategy functions under Jason's leadership will further align our capital allocation framework with the growth ambitions of our data center platform. With that, we will now open the call up for questions. Operator?

[Operator Instructions] Our first question comes from Paul Golding with Macquarie.

Congrats on all the progress with delivering the first 5 megawatts. I wanted to ask, around the AMD lease and how things are progressing there, have you come away with any best practices or interesting takeaways like gating factors on conversion with the first 5 megawatts that you're putting to work on the next phase of delivery. And maybe as part of that question, how conversations may be progressing with the expansion and right of first refusal with AMD? And then I have a follow-up.

Thanks for the question, Paul. So I would say the first key lesson is a validation of our commercial approach where we start the conversation with a discussion and understanding of what our customer is looking for and exactly how we're going to deliver that. We think that is an important foundation for approaching these discussions so that we ensure that we can deliver exactly what the customer is looking for on the timeline that they need. So I would say that was the approach that we took with AMD and the fact that we've been able to deliver on such an aggressive timeline is validation of that. I think another thing it validates is the strategic advantage of our internal engineering capability. A huge part of how we were able to deliver for AMD on such an accelerated timeline was the fact that we have the internal capability to engineer and manufacture low medium voltage switchgear and other important power components for data center development. So Riot's ESS Metron was one of the biggest suppliers to the development for the capacity that we are leasing to AMD. So I would say it's more of a validation of our approach than anything. And it is a playbook that we are looking to take for -- to the rest of our pipeline and employ that same playbook, the same strategy to ensure that we are giving our customers what they want, and we are meeting the timelines that we agreed to. As far as expansion goes, I don't want to comment on specific discussions, but I would say that we are very encouraged by our partnership. I believe that delivering on the initial 2 phases on our aggressive timeline is an important step in growing that partnership. The way we think about the AMD relationship is not a one-off deal. We are aiming to build a sophisticated long-term infrastructure partnership with a well-capitalized and high creditworthy company, such as AMD, as they build out infrastructure to support their AI road map. And the only way that we can build that partnership is if we deliver and meet our commitments to our customer AMD. So that's what we're focused on there. And of course, if expansion options are realized in the future, we'll be updating the market on those -- when those announcements can be made.

And then you did mention that you're in discussions on financing. I guess given all the commentary in the marketplace around private credit, how are discussions progressing? Any additional color you could provide would be super helpful on available liquidity in the marketplace, cost of capital or anything around that?

Sure. I'll turn that question over to Jason Chung, our CFO.

Thank you, Jason. We've been actively engaging with a number of different banks across the board and of course, have been keeping a close eye on developments in the debt capital markets in parallel. I think when we think about the AMD lease itself, we're really talking about 2 distinct risk profiles within the same lease. There's the initial stabilized portion of the deployment and second to that is the future expansion option itself. And so when it comes to the first portion, that's stabilized deployment, we anticipate that given the highly predictable contracted cash flows of the initial 25-megawatt deployment backed by AMD's strong credit. We think we can get a really low cost of capital that essentially removes the development or execution risk that lenders would typically price in. Then when it comes to the second portion on the expansion option that could potentially be structured as sort of a separate delayed draw type facility, specifically intended to support AMD's 75-megawatt expansion development. So by separating these 2 distinct credit profiles, what we're able to do is avoid paying a blended sort of construction premium across the entire facility. And so we think that will really result in 3 particular outcomes. The first is we should be able to get a significantly lower overall cost of capital on a facility like this. The second is that it will allow us to pull out our initial equity and the third is that will enable us to efficiently recycle that capital to finance additional growth CapEx in the future. So when it comes to discussions with the banks right now, this is where our primary focus is on we're seeing an incredible amount of liquidity and depth in the project finance markets. And we think that the interest in exploring an opportunity to partner with Riot on this type of facility is very strong.

Our next question comes from John Todaro with Needham & Company.

Congrats on the progress with AMD and then also some of the additional stuff going on at Corsicana. I was wondering if we could just drill a little bit more into that leasing pipeline, the demand environment, how those conversations have evolved and kind of any timeline guardrails or just how advanced those discussions are? And then I have a follow-up as well.

Sure, John. So kind of set the stage, we have 1.7 gigawatts of approved power capacity in Texas. And as we see the industry develop, that asset becomes more scarce and more appreciating. So our responsibility here to shareholders is to maximize the value of that capacity, and that's what we're focused on. I want to zoom out and take a look -- reflect on the road map that we've been on. On our second quarter '25 earnings call, we outlined that the next step we were doing was completing our basis of design, and that would lead to technical discussions with the market. And then on our Q3 '25 earnings call, we shared our basis of design that had been completed and that we were initiating technical discussions, engineering discussions with various customer segments out there. We've done that. We've been able to enhance our design as a result of those discussions. And now we are in the commercial phase. We are in active conversations with multiple parties. That's across hyperscaler, enterprise, neocloud and AI customer segments. The AMD deal validated us as a credible counterparty. And I'd say that has materially increased the quality and the seriousness of the inbound interest that we've received. Now of course, it's difficult to predict the exact timing for leases. We are preparing these deals can go through different phases. We've heard our peers talk about it's stopping and starting -- starting and stopping with various different deals before they got to the final one. But we are absolutely targeting additional announcements in 2026. We believe we are incredibly well positioned to execute on that, and we will disclose more details when we are in a position to do so.

That's great. That's very helpful. And I know from the prepared remarks, you said these sites could go single tenant or multi-tenant, is there a preference from you guys? Do you want to kind of mix in a couple of these different segments or hyperscaler does have demand for the whole thing? Would you prefer that?

Yes. That's a good question. In the prepared remarks, what we wanted to highlight is that we have the flexibility here. The way our campuses are laid out, they can be single tenant or they can be multi-tenant campuses. We have optionality to maximize the value of our assets here. And that being said, our focus is on high creditworthy counterparties. And in Corsicana, for example, while we have the flexibility to accommodate multi-tenant, I can tell you all of the real interest so far from potential customers has been for the entire site. So I tend to believe that is the most likely outcome for a leasing scenario at Corsicana. Perhaps it ends up being different in the end. Perhaps there's a mix at Rockdale. The important thing is getting good quality leases with good quality counterparties and we have flexibility in how we put that together to end the -- to create the final tenant composition of a site, whether it's one or more tenants.

Our next question comes from Reggie Smith with JPMorgan. Reggie, your line might be on mute. Our next question will come from Mike Grondahl with Northland.

With all the questions around ERCOT recently. I believe Riot's power is approved at Corsicana. But can you confirm that. And then secondly, does ERCOT's batch process affect Riot in any way going forward sort of positively or negatively?

Thanks for the question, Mike. So the short answer to your question, the power at Corsicana has been completely approved. We received that approval back in the fourth quarter of 2022. So that site is in operation, received the approvals back then, and we are fully available to scale up to our 1 gigawatt from there when we're ready. The batch process does not impact Riot. The new ERCOT batch process that was proposed, not implemented, pertained to loads that had been in different stages of the planning or approval process already before final approval and certainly before energization. So that would affect new sites that have not been energized would not impact Riot sites that have been approved for years and have already been in operation. So we think that just further validates the value of these sites, the fact that they're already approved, and we don't have that same level of risk for them.

Our next question comes from Stephen Glagola with KBW.

Just a quick one for me. On the financing side, can you just talk about how Bitcoin sales are going to continue or not continue to play a role in funding the CapEx going forward here.

Thanks, Stephen. I'll turn that over to Jason Chung.

Thanks, Jason. On our financing plan, our funding hierarchy, if you will, starts with the Bitcoin treasury. So in addition to selling all of our ongoing Bitcoin monthly production, we have and will continue to sell Bitcoin directly from our balance sheet in order to fund our operational needs and growth CapEx. So one clear example of this was when we announced the acquisition of the Rockdale site, the $96 million consideration was funded entirely through the sale of nearly 1,100 Bitcoin off the balance sheet, and we'll continue to do so going forward. That being said, our strategic evolution towards data center development also opens up access to new pools of low-cost capital. So you should expect to see us look to tap into these lower cost non-dilutive debt structures as well to fund our build-out in conjunction with our Bitcoin sales off the balance sheet. We believe this combination is the most accretive financing strategy for our shareholders going forward.

Our next question comes from Nick Giles with B. Riley Securities.

Yes, I want to commend Colin and congratulate you, Jason Chung on your appointment. My question was really just how you're thinking about M&A of new sites and how that could have shifted recently? Have these aircraft developments change things. Some of your peers are either talking about and have already taken action towards adding generation capabilities on site. So is that something you'd consider? Or are you really only interested in opportunities with greater interconnection are ones that really don't require you to operate the generating assets.

Nick. So thanks for the question. As far as developing pipeline goes, there's a question earlier about the ERCOT batch process. Besides that, we've seen it becoming increasingly difficult for new grid interconnections to be approved. So that's to be a double-edged sword in our case. On 1 hand, that makes it harder to get new grid interconnections approved. On the other hand, it makes our massive existing portfolio already that more valuable. And so when we think about our pipeline, the first thing that we're mindful of is we have a massive pipeline in front of us. We have nearly 2 gigawatts, 1.7 gigawatts just between Rockdale and Corsicana, 2 mega flagship sites that we're able to act on. That is an enormous value creation opportunity for Riot in and of itself. That being said, we are thinking for the long term. We're not just trying to monetize 2 sites here, we are building a durable platform, like, durable data center business, and we want to have a repeatable process for future sites. We repeat the process like we've demonstrated with AMD. We have been evaluating an enormous amount of opportunities. You can imagine, there's lots out there. It goes through a very intensive process within our organization, and we filtered down to a few, and we are now involved in several active processes to acquire potential new developments. But I think you raised a really good point on generation. I think the environment that we're in, where it's difficult to procure additional power capacity means that you need to be more creative in how you are solving that problem. It can't just be relying on grid power. The future of this industry is clearly bringing your own power. That is an area where I think Riot has a tremendous advantage, a lot of our engineering team and operations team come from a generation background. So I can tell you this is something we are looking at very closely and taking very seriously and using all of the resources at our disposal to help build that durable pipeline for us to continue replicating our success on.

Jason, appreciate that perspective. My second question was you've proven your ability to generate revenue very quickly through the AMD contract. That being said, there's still a really high degree of urgency in the market around other megawatts. So my question is really, are there ways that you could accelerate the ultimate energization of data center megawatts in either asset? And we kind of have the 112-megawatt target at Corsicana, but can you give us a sense for maybe how many kind of energized data center megawatts could be brought online by '27.

Yes. Nick, the very reason that we initiated on that core and shell development without a lease in hand was to ensure that we could deliver capacity starting in 2027 and be very competitive with our offering there. Those first 2 buildings, that is just the beginning. We are obviously in a commercial process and we are looking -- we are out there marketing and attempting to lease the entire site. And ultimately, we'll have a build strategy reflective of what our customer requirements are. But we have these processes underway. To further enhance our ability to deliver timely, we have begun procuring long-lead equipment. In fact, we procured most of the more supply-constrained long-lead equipment that you would need for those first 2 buildings. So when we are having commercial discussions, it's not about 112 megawatts. It's about how we are delivering the full capacity, the 1 gigawatt of utility load available at that site, and those are just the initial parts of that deployment, but we are ensuring we can be very competitive with the delivery time line.

Great. Well, I appreciate all the detail and keep up the good work.

Our next question comes from Reggie Smith with JPMorgan.

My first question is kind of a follow-up to the last point you made, Jason. Obviously, you guys have a massive site that's right outside of Dallas, and your peers have talked about, I guess, contract terms and discussions seem to be getting better where operators are getting better and better economics. A question for you is thinking about that site and something that I've been telling investors for a while now. I kind of want to verify, your proximity to Dallas. Like is there a premium? Or can you extract or get a premium for that proximity, how do you think about valuing that element of it and even the size of the site. There aren't many gigawatt sites for sale or for lease rather out there. So how do you think about those features of your property and how you can price for that. Obviously, you're dealing with top-tier tenants, and there's some negotiation back and forth there. But anything you could share about like how you guys think about that and how it should show up in any deal that you may sign?

Yes, Reggie, thank you for the question. So the attributes of the sites, the sizes, the proximity to Tier 1 markets, Corsicana in particular, it is not as much as an impact on deal economics. Well, I think there's some impact there. The bigger point is the impact it has on the types of tenants that we're able to attract there. The types of tenants that we want to enter into leases with, the types that we can get strong financing and the best valuation multiples off of, they are the tenants that are more selective on location, and they are looking to be placed closer to the Tier 1 markets. That, I think, is the biggest factor there is it's widen the doors of the conversations that we're able to have to the best names out there.

Got it. That makes sense. And then if I could get one quick follow-up. Thinking about kind of milestones, both on the development side and even like contract discussions, what are some of the key things that maybe internally you guys are looking for on the contract side that lets you know that, hey, this is progressing. Maybe educate us on like how those discussions progress and play out. And then again, on the development side, like what should we be looking for over the next couple of quarters to let us know that, hey, the site's being developed on time, et cetera. So anything you can share there would be fantastic.

Yes. So I think that's an important indicator of the serious discussions is how much they end up going to a technical product discussion and how quickly they do. I think that is a strong indicator of how serious the counterparty is with moving forward. That's what we've taken the approach that we have. We wanted to ensure that we had a technically sound offering a product that hyperscaler and high creditworthy investment-grade tenants we're looking for. So the level of technical interest, the level of details that we're getting into for us is a signal of the seriousness of what's going on. But we are very focused on leasing these sites with the right agreements as quickly as we can. So we've been cautious to keep our optionality open. We're engaging, obviously, with multiple counterparties at once to ensure that we can move along in a timely fashion and deliver high-quality outcome for shareholders as quickly as we can.

Our last question comes from the line of Greg Lewis with BTIG.

Thanks for squeezing me in here. I guess, Jason, you mentioned that a few times on the call about the benefit of ESS Metron and that acquisition. I guess I'd be curious, it's clearly good to have that inside the portfolio. But as we try to think about the benefits of ESS Metron, is that -- could -- is that more of a speed to market? Or could we actually also see it potentially make projects more economically compelling, i.e., lower upfront costs maybe than some of your competitors?

That's a good question, Greg. For us, the main benefit has been strategic and supply chain visibility. I touched on it on the earlier question from Paul about delivering from AMD. The only way that we were able to do that to deliver on that timeline that AMD needed was having this internal engineering and manufacturing capability, where we could develop a customized solution and prioritize that overall other work out there. No other third-party OEM would be able to do that for Riot or want to do that for Riot. So it has really changed the way in what we're able to offer solutions for customers. And I'll tell you, from the recruiting standpoint, building a high-quality team here is obviously very important for delivery and execution on the data center strategy, a lot of the talent that we've recruited has been particularly compelled and interested by the capabilities that we have with ESS Metron and E4A. So the people that live and execute this for us, they certainly see the benefit for this as well. So supply chain strategic, but there is a cost savings there as well. On one of our slides showed that since we've acquired ESS Metron, we've saved approximately $23 million on CapEx since that acquisition. We did that acquisition 4 years ago for approximately $52 million in consideration and we've nearly recouped half of that already just in CapEx savings. And that -- those savings have only been realized on relatively smaller scale Bitcoin mining developments and now this AMD development as well. When you talk about the broader development in front of us building out 1 gigawatt of utility capacity at Corsicana and eventually, all 700 megawatts of capacity at Rockdale. That's substantially more business than we've done with ESS Metron in the past. So presumably, the CapEx savings would even be more considerable over the term of that larger and longer-term project.

That concludes today's question-and-answer session. I'd like to turn the call back to Jason Les for closing remarks.

I want to thank all of our shareholders, investors, analysts for coming on to our call today. Appreciate all the questions, materials available on our website, and our IR team is available for any follow-up questions. We look forward to continue executing on the incredible opportunity in front of us, and we will speak with you again next quarter.

This concludes today's conference call. Thank you for participating. You may now disconnect.