Riot Platforms’ post-halving profitability: myths vs facts

Profitability shifts beyond bitcoin mining

Riot Platforms reported $174.2 million in total revenue for the second quarter of 2026, a 14% increase from the $153.0 million reported in 2025. While some claim Bitcoin mining remains the only revenue driver, data center revenue reached $23.2 million this year. The company signed a 20-year contract with a frontier AI lab for 191 MW of capacity at the Rockdale campus, which expects to generate $9.1 billion in total contract revenue over the initial term. You should look at the $16.1 billion potential value if the tenant exercises two five-year extension options. This agreement follows the delivery of 25 MW to AMD, which Riot completed on time and on budget. AMD’s expansion includes a 10 MW Phase 3 delivery in November 2026 and a 15 MW Phase 4 delivery in May 2027, which will bring AMD’s total contracted capacity to 50 MW. The company has now executed leases totaling 241 MW of capacity with two major AI ecosystem companies. Data center revenue of $23.2 million comprised $4.9 million in operating lease revenue and $18.3 million in tenant fit-out services revenue. Engineering revenue reached $37.3 million, more than triple the $10.6 million recorded in the previous year. The engineering backlog totals $177.1 million, with the data center sector accounting for 90% of that total, while Riot produced 1,587 bitcoin during the quarter compared to 1,426 in 2025.

Corsicana expansion and Project Ditto

The idea that the Corsicana campus lacks development activity contradicts recent regulatory filings. Riot filed a construction permit for Project Ditto, a $400 million two-story data center building at the Corsicana site at 6980 FM 709. This 335,430 square foot facility targets a completion date in 2028. The Corsicana campus, located in Navarro County, currently hosts 400 MW of power for Bitcoin mining and holds 858 acres of land. Riot expanded its land position in 2025 by acquiring 355 acres in May and 238 acres in July. The company also entered a non-binding letter of intent with a single tenant for the entire 1 GW site. This single lease could generate over $1 billion in annual rent upon full deployment, which provides significant upside for the facility. Project Ditto remains one of the largest single-building permits filed in the Corsicana area. This strategy follows a decision in January 2025 to halt the 600 MW Phase II Bitcoin mining expansion to evaluate AI and high-performance computing workloads. The project’s two-year construction timeline is consistent with enterprise-grade builds in Texas.

Cash reserves and mining costs

Mining profitability fluctuates, but the company maintains significant liquidity to manage these cycles. Riot ended the second quarter with $1.2 billion in total liquidity, which includes $549 million in cash and $666 million in bitcoin. The company holds 11,380 bitcoin, valued at $666 million at the June 30 price of $58,527 per bitcoin. In the same quarter, the direct cost to mine one bitcoin was $49,912. This cost increased from $48,992 in the same period in 2025 due to higher power costs and expansions in Kentucky. The company also generated $10 million in power curtailment credits to offset expenses. Despite these credits, the company reported a GAAP net loss of $237 million for the quarter. This loss included $75 million in mark-to-market losses on bitcoin holdings and $98 million in depreciation and amortization. Bitcoin mining revenue reached $113.7 million, though hash rate utilization averaged only 87% due to downtime in Kentucky. How will the company manage the massive capital expenditure required for the full 1 GW build-out of the Corsicana site?