Key Highlights
- Riot Platforms liquidated 3,778 BTC during Q1 2026, generating net proceeds of $289.5 million at an average sale price of $76,626 per bitcoin.
- Bitcoin production totaled 1,473 BTC in Q1, representing a 4% decline compared to the previous year, with holdings standing at 15,680 BTC by March 31.
- The company’s deployed hash rate reached 42.5 EH/s, marking a 26% year-over-year increase, while comprehensive power expenses decreased 21% to 3.0 cents per kWh.
- Power credits totaling $21 million were generated in Q1, reflecting a 171% surge from the corresponding quarter last year.
- Following Q4 2025 results, numerous analysts reduced price targets, though the majority retained buy-equivalent recommendations.
In a significant shift, Riot Platforms liquidated substantially more Bitcoin during the first quarter of 2026 than its mining operations generated. The cryptocurrency miner disposed of 3,778 BTC while only producing 1,473 coins. At an average exit price of $76,626 per coin, these transactions yielded net proceeds of $289.5 million. Bitcoin was hovering near $66,867 when the disclosure was made on Friday.
By quarter’s end, the company’s Bitcoin reserves stood at 15,680 BTC, representing an 18% reduction from the 19,223 coins held twelve months prior. Within this total, 5,802 BTC are classified as restricted assets. Blockchain tracking service Arkham additionally identified a separate 500 BTC transfer from a wallet linked to Riot on Thursday.
The selling trend extends beyond Riot’s operations. Competing miners including MARA Holdings, Genius Group, and Nakamoto Holdings combined to sell 15,501 BTC over the past week, with MARA responsible for the lion’s share. Rising energy expenses represent a critical pressure point. Industry analyst Kadan Stadelmann identified the oil price surge stemming from Middle Eastern tensions — which intensified in February — as a primary catalyst driving operational expenses upward.
“Mining companies are compelled to liquidate their Bitcoin holdings in order to meet their operational expenses,” Stadelmann explained.
Mining Capacity Expands While Expenses Decline
Notwithstanding the liquidation pressures, Riot’s mining operations expanded considerably. The company’s deployed hash rate climbed to 42.5 exahashes per second by quarter-end, representing a 26% increase from 33.7 EH/s in Q1 2025. The average operational hash rate throughout the quarter measured 36.4 EH/s, reflecting a 23% year-over-year gain.
Operational efficiency metrics improved as well, with fleet efficiency reaching 20.2 joules per terahash, compared to 21.0 J/TH a year earlier. Comprehensive power costs dropped to 3.0 cents per kilowatt-hour, down 21% from 3.8 cents in Q1 2025.
The company captured $21 million in aggregate power credits throughout the quarter. This comprised $13.5 million in curtailment credits alongside $7.5 million from ERCOT and MISO demand response initiatives — marking a 171% year-over-year expansion.
Wall Street Reduces Projections Post-Q4
In response to Q4 2025 results, multiple Wall Street firms adjusted their outlook. Cantor Fitzgerald reduced its price objective to $29 from $31 while maintaining an Overweight stance. Needham lowered its target to $24 from $30, pointing to underperformance in mining operations and elevated operating expenses. H.C. Wainwright revised its target to $23 from $26 following disappointing full-year performance.
Citizens maintained its Market Outperform designation with a $25 price objective, emphasizing Riot’s Texas power infrastructure as a valuable strategic asset for potential lease agreements.
Stadelmann noted that less competitive mining operations are already shuttering, contributing to the Bitcoin network’s total hashrate declining from 1,160 EH/s to approximately 990 EH/s since early March. Network mining difficulty similarly decreased on March 20, dropping from 145 trillion to 133 trillion.
Riot additionally commenced AMD lease monetization in January as part of its strategic pivot into HPC/AI data center operations.
