How RIOT (Riot Platforms) Makes Money in 2026: A Deep-Dive With Income Statement

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Understanding how a cryptocurrency mining like RIOT makes money is essential for investors and anyone interested in the business of digital assets. In this post, we break down RIOT's quarterly income statement (Q3 2025) using a Sankey chart to visualize the financial flows — what comes in, where it goes, and what's left as profit.

Quick RIOT Overview

RIOT operates as a Bitcoin mining company focused on industrial-scale digital asset mining and related infrastructure. Revenue comes primarily from mining Bitcoin and holding digital assets, with additional income from hosting and engineering services. The company leverages its large-scale data centers to mine cryptocurrency efficiently, benefiting from Bitcoin network hashrate growth and strategic asset management.

Revenue Breakdown

• Total Revenue (Q3 2025): $180.2M (+112.6% YoY)
  • Mining operations: Primary driver, capturing nearly all revenue through Bitcoin production.
  • Other sources: Minor contributions from hosting and engineering.
  • Growth is powered by expanded mining capacity, higher Bitcoin prices, and increased hashrate deployment.

Gross Profit and Margins

• Gross Profit: Not explicitly broken out (implied high due to operating income structure).
  • Cost of Revenue: Not specified (likely dominated by energy costs and depreciation for mining equipment).
  • RIOT maintains robust margins due to scalable mining operations and low marginal costs per Bitcoin after fixed infrastructure investments.
• Most costs come from energy consumption, hardware depreciation, and facility operations.

Operating Income and Expenses

• Operating Income: $80.1M (+0.0% YoY, 44.4% margin)
• Operating Expenses: $69.8M (-47.6% YoY)
  • R&D: Not specified.
  • SG&A: $69.8M (+4.3% YoY, 38.7% of revenue) — Covers general administrative costs, including executive compensation, legal, and compliance in the volatile crypto sector.
  • RIOT continues to control costs while investing in growth, with sharp operating expense reduction signaling improved efficiency amid revenue surge.

Net Income

• Pre-Tax Income: $106.2M (+0.0% YoY, 58.9% margin)
• Income Tax: $1,685.0M (1.6% effective tax rate)
• Net Income: $104.5M (+0.0% YoY, 58.0% net margin)
• RIOT converts a high portion of sales into profit due to asset appreciation, low tax burden, and operational leverage in mining.

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What Drives RIOT's Money Machine?

• Bitcoin mining: Over 100% of core revenue, with $180.2M in Q3 2025 from producing and selling mined Bitcoin.
• Hashrate expansion: Key metric, as higher deployed hashrate directly boosts Bitcoin output amid network difficulty increases.
• Digital asset holdings: Strategic investments in Bitcoin reserves, generating "Other" income of $14.1M and "Net interest" income of $12.0M.
• Future growth areas: Expansion into AI/high-performance computing hosting, though not yet profitable.

Visualizing RIOT's Financial Flows

The Sankey chart below visualizes how each dollar flows from gross revenue, through costs and expenses, down to net income. This helps investors spot where value is created, what areas weigh on profits, and how efficiently the company operates.

• Most revenue flows into gross profit, with operating expenses (especially SG&A) taking the largest chunk.
• Even after significant tax and other items, 58.0% of revenue drops to the bottom line.

Key Takeaways

• RIOT's money comes overwhelmingly from Bitcoin mining
• High gross and net margins illustrate the power of RIOT's asset-light, high-leverage mining model
• Heavy investment in infrastructure, balanced by efficiency in operating costs
• Ongoing growth is driven by hashrate expansion and Bitcoin price appreciation

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FAQ About RIOT's Income Statement

1. What is the main source of RIOT's revenue in 2025?

RIOT generates over 100% of its revenue from Bitcoin mining operations.

2. How profitable is RIOT in Q3 2025?

RIOT reported net income of $104.5M in Q3 2025, with a net margin of approximately 58.0%, reflecting strong profitability driven by revenue growth and cost controls.

3. What are the largest expense categories for RIOT?

The biggest expenses on RIOT's income statement are operating expenses, particularly Sales, General & Administrative (SG&A) costs. SG&A investment reached $69.8M in Q3 2025, as RIOT prioritizes operational scaling in the crypto mining sector.

4. Why does other items operate at a loss?

Not applicable; other items contributed positively with $14.1M in "Other" income and $12.0M in "Net interest" income in Q3 2025. This is because RIOT benefits from digital asset holdings and interest, driving long-term growth.

5. How does RIOT's effective tax rate compare to previous years?

RIOT's effective tax rate in Q3 2025 was 1.6%, lower than previous years. This low rate is primarily due to tax benefits from cryptocurrency operations and international structuring.