Riot Platforms attracting ‘blue-chip’ partners for AI ventures amid Q3 losses Riot Platforms attracting ‘blue-chip’ partners for AI ventures amid Q3 losses
Riot's power capacity becomes a key asset as they navigate rising AI partnership inquiries.
2 min read
Updated: Oct. 31, 2024 at 4:41 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Riot Platforms CEO Jason Les revealed substantial interest from “blue-chip” companies looking to partner with the Bitcoin miner on AI and high-performance computing (HPC) initiatives.
Speaking during the Oct. 30 earnings call, Les explained that the company has received numerous inbound offers to secure large-scale power capacity. The\ inquiries come from highly credible, financially stable organizations capable of committing to long-term agreements.
Les attributed the interest to Riot’s reputation and extensive energy capacity. He stated:
“Riot’s reputation and our image of having so much power capacity is what’s resulting in us getting these unsolicited offers for really significant amounts of power capacity. The interest that we’re seeing is for hundreds of megawatts, not necessarily smaller amounts.”
The statement corroborates an earlier interview where the CEO emphasized Riot’s readiness to consider AI ventures if it sees the right partnership and deal structure.
According to Les, Riot’s facilities — such as the 750-megawatt Rockdale facility and the Corsicana mining site with a one-gigawatt capacity — offer strategic advantages that could help advance the company’s effort in the sector.
Riot’s interest in AI is unsurprising because the sector could provide a lucrative revenue stream for Bitcoin miners who allocate a portion of their energy capacity to it. One example is how Core Scientific is expected to earn more than $8 billion over a 12-year period in a deal with AI Hyperscaler CoreWeave.
Q3 losses
A potential revenue boost from AI would be timely for Riot, which reported a widening year-over-year net loss for the third quarter despite a notable rise in revenue.
According to a press statement, Riot posted a net loss of $154.4 million$0.54 per share, compared to a $80 million loss during the same period last year. This increased loss occurred alongside a 65% rise in total revenue to $80 million, fueled by higher Bitcoin prices and greater operational output.
Additionally, Riot’s average Bitcoin mining cost, excluding depreciation, was $35,376 per coin for the quarter. This increase was driven by a reduction in power credits—down 75% from Q3 2023—and a recent Bitcoin halving event in April 2024, which cut block rewards by half.
Further, the global network hash rate saw a 59% rise, putting additional pressure on mining costs.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Riot Platforms
Riot Platforms is a bitcoin mining company, supporting the Bitcoin blockchain through rapidly expanding industrial-scale mining focused in the United States.
Core Scientific
Core Scientific is a leader in infrastructure and software solutions for Artificial Intelligence and Blockchain.
