Jason Les, CEO of Riot Platforms Inc. (NASDAQ:RIOT), labeled Thursday its Bitcoin (CRYPTO: BTC) mining business as a “means to an end,” supporting its larger goal of data center development.
Riot Goes Big On Data Center Business
During Riot Platforms’ third-quarter earnings call, the CEO said the company intends to continue exploiting the opportunity Bitcoin mining offers to secure power and generate “strong cash flow.”
“We no longer see Bitcoin mining operations as the end goal, but instead as a means to an end, and that end is maximizing the value of our megawatts,” Les stated.
Les used megawatts to refer to Riot’s existing power infrastructure, which the company intends to repurpose for data centers and high-performance computing.
“Bitcoin mining continues to be a very valuable tool to monetize Riot's large-scale portfolio of power,” he added
Les stated that Riot made “decisive progress” in data center development during the third quarter and also announced the initiation of the core and shell development of the first two buildings of its ambitious Corsicana data center campus.
See Also: Analyst Says Bitcoin Mining Revenue And EBITDA Could Rise
Part Of A Broader Trend?
The Electric Power Research Institute projects that U.S. data center electricity consumption could reach up to 9% of total electricity generation by 2030, more than double its current consumption.
Additionally, analysts estimate 20% of Bitcoin miner power capacity will shift to AI and high-performance computing by the end of 2027.
Riot Earnings, Revenue Beat Estimates
This strategic shift comes on the heels of a successful third quarter for Riot Platforms.
The company reported a quarterly revenue of $180.2 million, exceeding analyst estimates of $172.6 million. It revealed earnings of 26 cents per share, beating estimates of 21 cents per share
Additionally, Riot produced 1,406 BTC during the quarter, up from 1,104 in the same quarter of the previous year. The firm held a total of 19,287 BTC at quarter’s end, equating to over $2 billion at current prices.
Price Action: At the time of writing, BTC was exchanging hands at $109,539.17, up 1.68% in the last 24 hours, according to data from Benzinga Pro.
Riot shares gained 3.31% in after-hours trading after closing 4.87% lower at $21.09 during Thursday’s regular trading session. Year-to-date, the stock has skyrocketed 106%.
The stock exhibited a very high momentum score as of this writing. How does it compare with similar Bitcoin mining stocks? Visit Benzinga Edge Stock Rankings to find out.
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