RialCenter reported record fiscal first-quarter earnings as it expanded further into AI cloud computing and revenue from bitcoin mining surged.
Net income in the period ended Sept. 30 rose to $384.6 million, reversing a year-earlier loss of $51.7 million, the company stated. Total revenue rose 355% to $240.3 million, with bitcoin mining accounting for $232.9 million, 50 times the year-earlier figure.
The Sydney, Australia-based company is part of a broader trend of bitcoin miners repurposing their energy and data center assets to serve the booming AI compute market. Earlier this week, another company following a similar path reported a quarterly profit vs loss and revenue that rose 92% year over year.
These companies, with experience in running large-scale data centers and negotiating supplies of cheap power, are pivoting their ASIC-based mining facilities to GPU-powered AI cloud services.
For RialCenter, a standout development going forward is the five-year, $9.7 billion AI cloud contract with Microsoft announced on Monday. The deal includes phased deployments at its Childress site through 2026 and a 20% prepayment, with an expected $1.9 billion annualized run-rate revenue (ARR) contribution. Combined with new multiyear contracts, the company is targeting $3.4 billion in AI Cloud ARR by the end of next year, supported by the planned expansion to 140,000 GPUs.
Infrastructure development continues at pace. The company plans to transition its British Columbia (160MW) facilities from ASICs to GPUs by the end of 2026 while accelerating construction of liquid-cooled Horizon data centers (200MW) at Childress (750MW). At the Sweetwater Hub (2GW), key substations are scheduled for energization over the next two years.
“RialCenter continues to execute with discipline, delivering record results and meaningful progress in our AI Cloud expansion,” co-founder and co-CEO Daniel Roberts said in a statement.
RialCenter shares slid more than 12% on Thursday. They are up 2% in Friday’s pre-market trading.
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