Riot Platforms Stock Flies Ahead of Earnings: What's Going On?

Riot Platforms Inc. (NASDAQ:RIOT) shares are jumping Tuesday ahead of its third-quarter earnings report, due after the market closes today.

• Riot Platforms shares are powering higher. Why is RIOT stock up today?

Riot Platforms Stock Rises Ahead of Earnings

Riot Platforms shares are climbing hours before the company reports its third-quarter results. Wall Street projects a loss of 32 cents a share on $160.75 million in sales. That revenue figure sits about 8% under the $174.20 million Riot posted last quarter, a result that topped the $152.06 million analysts expected.

Mining still drives Riot’s business, though last quarter showed the mix shifting. Bitcoin (CRYPTO: BTC) mining produced $113.70 million of revenue, while engineering added $37.30 million and data centers $23.20 million. Output rose to 1,587 bitcoin from 1,426 a year earlier, and each coin cost an average of $49,912 to produce.

Riot’s Shift to AI Data Centers

During the second quarter, Riot inked a 20-year lease with an unnamed top AI lab, covering 191 megawatts at its Rockdale campus, and expects about $9.10 billion in initial contract revenue from it.

CEO Jason Les called the agreement a turning point as Riot grows into a developer of huge data centers. Riot had also completed its initial 25-megawatt handover to AMD on schedule and within budget, he said. At the end of the quarter, the company held 11,380 bitcoin plus $548.90 million of cash.

If revenue tops $160.75 million, or the loss comes in under 32 cents a share, mining and early data center income would look stronger than analysts expect while the AI lease takes shape. A result below those marks would raise questions about how much cash Riot generates in the meantime. The new lease is a long-term contract and does not yet produce revenue.

RIOT Shares Are Soaring

RIOT Price Action: Riot shares were up 15.71% at $13.70 at the time of publication on Tuesday, according to Benzinga Pro.

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