Riot Platforms Q1 2026 Earnings Call: Complete Transcript

Riot Platforms (NASDAQ:RIOT) held its first-quarter earnings conference call on Thursday. Below is the complete transcript from the call. This content is powered by Benzinga APIs. For comprehensive financial data and transcripts, visit https://www.benzinga.com/apis/. Access the full call at https://edge.media-server.com/mmc/p/2wuv9ofa/ Summary Riot Platforms reported an EBITDA loss of $311 million, driven by non-cash accounting adjustments and depreciation expenses. The company produced 1,473 bitcoin, reducing its direct cost to mine by 26% compared to Q4 2025. The newly added data center segment generated $33.2 million in revenue, mainly from tenant fit-out services, with a 91% gross margin from operating lease income. Riot Platforms holds 15,679 Bitcoin valued at approximately $1.1 billion, which will be leveraged for data center development. Strategic initiatives include expanding data center operations, securing power access, and vertically integrating engineering capabilities. The company is focused on securing leases with high-quality tenants like AMD and expanding its power portfolio through various avenues. Management highlighted the importance of their experienced team and strategic execution to capitalize on the growing demand for data center capacity. Full Transcript OPERATOR 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 Platforms produced 1,473 bitcoin in the first quarter and ended the quarter with a deployed hashrate 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 fourth 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 Platforms and accelerates our tenant's ultimate speed to market. The fundamental value of this segment, however, is reflected in the operating lease income. We recognize 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. As we look ahead, you will see a natural evolution in this revenue mix. 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 Platforms has realized approximately $24 million in cumulative CapEx savings from 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. Jason Less 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 GW of fully approved power a strong competitive advantage, giving us one of the most significant development pipelines in our industry. However, 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 four distinct avenues. First, through Greenfield and brownfield development, securing and developing new land assets that offer immediate or near term 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 and A actively targeting and acquiring portfolios or organizations that already possess established access to power and 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. However, 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. Now 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 Platforms 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 and the conclusion was unambiguous. We had two of the most attractive data center sites in the country. But 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 GW 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 GW of approved power on Riot Platforms 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 and 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 megawatts, enhance 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. Now 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 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 Williams, our Senior Vice President of AI and Hyperscale Sales. Rhea Williams joined us following previous sales roles at Oracle, Compass Data Centers and Digital Realty and she brings both the relationships and the credibility necessary to to engage hyperscalers and other top tier tenants at the highest level, RIA 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 Platforms and 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 and every one of these functions is supported by Riot Platforms'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 Platforms has four things that in combination are extraordinarily difficult to replicate. We have the assets 2 gigawatts of utility power including 1.7 gigawatts of fully approved energized capacity at two of the most attractive data center development sites in the United States. 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 core Sakana and advancing our next wave of leasing discussions and 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 contracted 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 that reflects the quality of our tenants and sites. And 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 computer power. Execution, talent, supply chain access and capital discipline remain. The binding constraints and timelines for new capacity continue to extend. Riot Platforms 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 and 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 re rate Riot Platforms'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 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 and A roster. Our first question will come from the line of Paul Boulding with Macquarie. Paul Boulding Thanks so much and congrats on all the progress this quarter. I just wanted to ask a couple questions. First question on the 25 megawatt expansion with AMD 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 TCV versus a leaner Build out and better capex profile. And then I have a follow up. Thank you so much. Jason Less Sure. Thanks Paul. This expansion falls under the original lease that we executed with AMD earlier this year. So 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 runs after over the course of those escalation clauses occurring. But it is otherwise like substantially the similar term, similar rate, 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. So when we did the first 25 megawatts we had to prepare that full building and that had some additional expense. And now when we exercise execute on the next 25 megawatt expansion, completing that building out, we don't have to do that work over again. So lower costs by leveraging additional work and substantially the same better terms. But as you see on 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. Paul Boulding Great, thanks Jason. And 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 megawatt expansion. Can you talk to that? And also the right of first refusal (ROFR) piece that was converted to an option just as a follow up to that. I know there's another 50 megawatts in that original option as well as the 100 megawatt Rover. But just to understand how that converted as well as some of the time considerations with the expansion. Thanks so much. Jason Less Yeah, so this is a pretty fast timeline to deliver capacity. You see we're signing this deal, we're announcing this deal here in April and then we're delivering this at the end of October, beginning of November. So 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. Now with this expansion you're really seeing the whole process from the beginning. And 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 right of first refusal (ROFR) go goes from the very beginning here, we said that we viewed our initial deal with AMD to be the beginning of a larger partnership. And the best way that we at Riot can achieve that is by being a consistent and reliable partner for amd. And in doing so, we position ourselves as their preferred supplier of choice. So by continuing to do what we're doing, we believe that we are positioned to continue to grow that relationship. And I think the fact that AMD has exercised part of its options 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. Now, more specifically on the ROFER here, we converted the right of first refusal (ROFR) to an option really just to simplify the pathway of expansion of the lease of amd. We want to advance this relationship, AMD wants to advance this relationship, and we want to have a simple pathway to do that. And having an option instead of a ROFER 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 right of first refusal (ROFR) on terms or on a design that's different than what AMD's needs are. So we simplify our discussions with other potential tenants while also simplifying the pathway for expanding the relationship with amd. And that's how we were thinking about changing this right of first refusal (ROFR) to this option. Paul Boulding Got it all very clear. Thank you so much. Congrats again. OPERATOR One moment for our next question. And that will come from the line of John Todaro with Needham. Your line is open. John Todaro 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. And then I have a follow up. Jason Less Yeah, thank you for the question. So over the past few quarters, we've laid out the roadmap that we've been on to execute a commercial process. And 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 side and bring a strong offering to the types of counterparties that 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. So 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. And 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 to stop or fall through before one got to the finish line. So 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. So 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. And if I could just get a follow up on maybe kind of just I guess more broadly kind of demand signals. Do you think we've kind of seen fewer leases in the public markets so far than I think maybe some investors expected in 26, I guess. Is there anything beyond your conversations where there is changes in demand signals or, or something of that nature in the last 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. And 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. So that theme remains intact. But 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. And you can imagine in this rapidly changing environment that AI is driving. This cycle is running through much quicker than it has historically. But you're always going to be seeing the same level of urgency across the field. And then that field will kind of just completely change from one quarter to a nexus 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. And that means that we are positioned to respond and work with what the market is bringing us. Whether it's our reliance on our standard design or specific requirements that our design can easily accommodate. Our preparation is paying off and we are in the right market at the right time. John Todaro That's very helpful. Thanks for taking my questions and congrats again. OPERATOR Thank you. One moment for our next question, and that will come from the line of Mike Grondle with Northland. Your line is open. Jason Chung Thanks guys. Can you talk about some of the initial data center revenue this quarter, how that related to to the initial 25 megawatts you're delivering, and how to think about margins this quarter and going forward? Mike, thanks for the question. This is Jason Chung. Maybe I'll take a stab at that one. So 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. And this generated $1.4 million in gross profit with 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 megawatt delivery to AMD, which occurred in late January. And so regarding your question on margins, so the margin on that core operating lease component for this quarter was 91%. However, 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 and that will drive NOI margins towards that targeted 80% range that we put out there publicly before. And we think that'll happen as we close out Q3 and head into Q4. Mike Grondle Got it. And 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? Jason Chung Absolutely. So 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. So. Well, 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. Mike Grondle Thank you guys. OPERATOR Thank you. One moment for our next question. And that will come from the line of Stephen Glagola with kbw. Your line is open. Stephen Glagola Hey, thanks for the questions. Just two parts for 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? And 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. Jason Less Thanks for the question, Stephen. So 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. So to do that, we are constantly looking at how we are organized and what, 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. And you can imagine this is not something that happened overnight. It was sometime 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, and I think our continued rapid delivery for AMD and them deciding to exercise part of their option is a perfect example of that. And I think further, as we continue to make progress, that will become even more clear. And 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. And 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 and they are all working hand in hand to advance on our strategy. And we're very, very proud of that. You can definitely expect some incremental hiring for support roles in those different departments in the future. Our team is going to continue to scale as our business does, but the core leadership structure has been built and that's the team that's executing today. Stephen Glagola Thank you. OPERATOR One moment for our next question. And that will come from the line of Brett Knobloch with Cancer Fitzgerald. Your line is open. Brett Knobloch Hi guys. Thanks for taking my question. Maybe just one double click on Corsicana. It seems like there's a lot of momentum there. In the last quarter we 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? And then maybe as a follow up on the procurement process for the core and shell, you know, I guess. How are you at on that as well as the procurement process for what would come after the corn show? Jason Less Sure. Thanks. Brett. Your question on the majority of the conversation still around the entire site? Yes, that still remains the case and that is probably our preference. But I want to emphasize that we still have the ability to accommodate multi tenant if that is the way that things go in. 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. Now that is the opportunity for us. That's a fantastic asset for us. But 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. So that still remains the case. The majority of the interest is for the full site. That's the same as the commentary given 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 Corn Shell. At this point on the corn Shell development, it's largely an exercise in mobilizing labor. And 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 corn shell talking about the tier 3 eventual build out of the site, yes, we have been securing long lead equipment for that. So 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. So 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. Brett Knobloch Awesome. Thank you so much guys. Congrats on the quarter. OPERATOR Thank you. One moment for our next question. And that will come from the line of Brian Dobson with Clear Street. Jason Chung Hey, thanks so much. So just one more follow up on financing in general. Bitcoin sales have been a big part of your upfront financing. Do you expect that to continue? And would you elaborate on your view of call it long term debt financing and how that fits into your broader strategy? Let me turn that question to Jason Chung. Sure. Hey Brian. So that's correct. So right now our bitcoin treasury and operating cash flows remain the most capital efficient, non dilutive sources of funding available to us. And as a reminder, we executed our Q1 development entirely without issuing any common equity. Looking ahead to our broader financing philosophy as our leasing pipeline scales now, we recognize that establishing deep diversified access to capital is critical. And so 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 debt markets. And so 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 and 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 going to 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. And so 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. Brian Dobson Thanks very much for the color. OPERATOR Thank you. One moment for our next question. And that will come from the line of Nick Giles with B. Riley Securities. Your line is open. Henry Hurl Thank you operator. And good afternoon everyone. This is Henry Hurl on for Nick Giles. I wanted to ask about the potential cadence of AMD's remaining 150 megawatt expansion option. And is there a date where the options expire? So I see the illustrative chart on slide 22 which, which shows that the second 100 megawatt tranche is contingent on power availability. And what does that exactly mean? Jason Less Thanks. So the cadence of expansion with the AMD lease, that's really going to be driven by them. 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. So the new 100 megawatt option is conditional on them first utilizing all of the first option which now has 50 megawatts remaining. You know, as far as some of the details of the, 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. But 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 hundred megawatts that would require new building or capacity being developed. So you know, I would say just stay tuned. As you know we work on those plans and that development pipeline comes together. Got it. And then for my follow up in regards to your pipeline and the four different growth options, which one do you guys favor most? And out of the hundred plus opportunities referenced in your prepared remarks were those mostly Greenfield and Brownfield behind the meter, M and 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. And as we advance our commercial discussions at Rockdale and Corsicana, this pipeline becomes even more important because that means we 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. So 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. Henry Hurl Got it. Thanks for the color and continue. Best of luck. OPERATOR 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 Less for any closing remarks. Jason Less I want to thank everyone for tuning into 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. And we will see you on our next earnings call, if not before Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company's SEC filings and official press releases. Corporate participants' and analysts' statements reflect their views as of the date of this call and are subject to change without notice.