Riot Announces August 2022 Production and Operations Updates

Castle Rock, CO, Sept. 06, 2022 (GLOBE NEWSWIRE) -- Riot Blockchain, Inc. (NASDAQ: RIOT) (“Riot” or “the Company”), an industry leader in Bitcoin (“BTC”) mining and data center hosting, announces unaudited production and operations updates for August 2022.

Bitcoin Production and Operations Updates

• In August 2022, Riot produced 374 BTC, a decrease of approximately 15% as compared to August 2021 production of 441 BTC, while significantly reducing overall power costs through effective employment of its proprietary power strategy.
• Riot earned an estimated $3.0 million in power credits as a result of curtailment activity, to be credited against its power invoices; the $3.0 million in power credits equates to approximately 136 BTC, computed by using the August 2022 average daily closing BTC price of $22,097.
• As of August 31, 2022, Riot held approximately 6,720 BTC, all produced by the Company’s self-mining operations.
• In August 2022, Riot sold 350 BTC, generating net proceeds of approximately $7.7 million. 
• Riot currently has a deployed fleet of 46,658 miners, with a hash rate capacity of 4.8 exahash per second (“EH/s”). 

“August was another successful month for Riot in which we continued to make significant progress on the expansion of our Rockdale facility, including the deployment of an additional 6,347 S19j Pros in our immersion-cooled buildings, and producing Bitcoin while further contributing to grid stability in Texas through the continued exercise of our proprietary power strategy,” said Jason Les, CEO of Riot. “The significant benefits received in August from this strategy enhance our already industry-leading position as a low-cost producer, and further strengthen our solid financial position, providing us with ample resources to fund our compelling growth opportunities as we drive Riot towards our vision of becoming the world’s leading Bitcoin-driven platform.”

Mining Deployment and Shipment Update

Since its last monthly update, Riot received an additional 9,326 new S19j Pros and deployed 6,347 S19j Pros in its immersion-cooled buildings, with an additional 6,336 miners staged for deployment. Additionally, shipments of 10,193 S19j Pros have been initiated out of Bitmain Technologies Limited (“Bitmain”) and are expected to be received during September 2022. Upon deployment of the staged miners, the Company expects to have a total of 52,994 miners deployed with a hash rate capacity of approximately 5.4 EH/s. 

Infrastructure Update

Throughout the month of August, Riot's engineering and construction teams worked to advance the digital infrastructure expansion project at Riot's Rockdale Facility. 

Interior construction is nearing completion in Buildings D and E, Riot’s newest two air-cooled buildings. In Building D, engineers are working to complete installation of Riot's and ESS Metron’s custom designed air-cooling rack system. Louvers that provide and maintain proper airflow in the structure have been installed. Testing of the medium voltage transformers is completed in Building E.

Building F, Riot's first immersion-cooling building, continues to operate successfully. The Company's second immersion-cooling building, Building G, water cooling system is now 95% complete as additional dry-coolers and water pumps have been installed. Miner deployments continue in Building G, and additional miners have been placed and await deployment.

Estimated Hash Rate Growth

By Q1 2023, Riot anticipates a total self-mining hash rate capacity of 12.5 EH/s, assuming full deployment of approximately 115,450 Antminer ASICs, but excluding any potential incremental productivity gains from the Company’s utilization of 200 MW of immersion-cooling infrastructure. Substantially all of Company’s self-mining fleet will consist of the latest generation S19 series miner model. In addition to the Company’s self-mining operations, Riot hosts approximately 200 MW of institutional Bitcoin mining clients.

Human Resources

The Company is pleased to announce the hiring of Frank Durant, as Vice President of Field Operations at Ferrie Franzmann Industries, LLC (d/b/a ESS Metron) (“ESS Metron”), a wholly owned subsidiary of Riot. Mr. Durant’s expertise is in the areas of safety, finance, grid technology, renewable energy, and system operations. Mr. Durant’s reputation is well developed and has been recognized throughout his career as a leader in the energy industry. The Company believes his knowledge and extensive experience will contribute to additional growth and expansion of new service opportunities at ESS Metron.

Conference Schedule

Riot will be presenting at the following upcoming conferences:

• HC Wainwright & Co. Global Investment Conference held in New York, NY on September 12th – 14th.
• Fidelity Investment Conference held in Boston, MA on September 14th.
• BTIG 2nd Annual Digital Assets Conference held virtually on September 19th – 20th
• TXU Energy Summit held in Arlington, TX on September 27th.
• Crypto Mining Day hosted by Bank of America, held virtually on September 29th.
• B. Riley Securities 2nd Annual Crypto Conference held virtually on September 29th. 
• YTexas Summit held in Arlington, TX on September 30th. 

About Riot Blockchain, Inc.

Riot’s (NASDAQ: RIOT) vision is to be the world’s leading Bitcoin-driven infrastructure platform.

Our mission is to positively impact the sectors, networks and communities that we touch.  We believe that the combination of an innovative spirit and strong community partnership allows the Company to achieve best-in-class execution and create successful outcomes.

Riot is a Bitcoin mining and digital infrastructure company focused on a vertically integrated strategy. The Company has Bitcoin mining data center operations in central Texas, Bitcoin mining operations in central Texas, and electrical switchgear engineering and fabrication operations in Denver, Colorado.

For more information, visit www.riot.inc.

Safe Harbor

Statements in this press release that are not historical facts are forward-looking statements that reflect management’s current expectations, assumptions, and estimates of future performance and economic conditions. Such statements rely on the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Words such as “anticipates,” “believes,” “plans,” “expects,” “intends,” “will,” “potential,” “hope,” and similar expressions are intended to identify forward-looking statements. These forward-looking statements may include, but are not limited to, statements about the benefits of acquisitions, including financial and operating results, and the Company’s plans, objectives, expectations, and intentions. Among the risks and uncertainties that could cause actual results to differ from those expressed in forward-looking statements include, but are not limited to: unaudited estimates of Bitcoin production; our future hash rate growth (EH/s); the anticipated benefits, construction schedule, and costs associated with the Navarro site expansion; our expected schedule of new miner deliveries; our ability to successfully deploy new miners; M.W. capacity under development; we may not be able to realize the anticipated benefits from immersion-cooling; the integration of acquired businesses may not be successful, or such integration may take longer or be more difficult, time-consuming or costly to accomplish than anticipated; failure to otherwise realize anticipated efficiencies and strategic and financial benefits from our acquisitions; and the impact of COVID-19 on us, our customers, or on our suppliers in connection with our estimated timelines. Detailed information regarding the factors identified by the Company’s management which they believe may cause actual results to differ materially from those expressed or implied by such forward-looking statements in this press release may be found in the Company’s filings with the U.S. Securities and Exchange Commission (the “SEC”), including the risks, uncertainties and other factors discussed under the sections entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, as amended, and the other filings the Company makes with the SEC, copies of which may be obtained from the SEC’s website, www.sec.gov. All forward-looking statements included in this press release are made only as of the date of this press release, and the Company disclaims any intention or obligation to update or revise any such forward-looking statements to reflect events or circumstances that subsequently occur, or of which the Company hereafter becomes aware, except as required by law. Persons reading this press release are cautioned not to place undue reliance on such forward-looking statements. 

Attachments

• Riot's Rockdale Facility
• Riot Hash Rate Capacity Growth Updated August 2022

Alexis Brock
Riot Blockchain, Inc.
512-940-6014
PR@riotblockchain.com

Phil McPherson
Riot Blockchain, Inc.
303-794-2000 ext. 110
IR@riotblockchain.com