Riot Platforms, Inc. · NASDAQ:RIOT
Riot Platforms — Investor Presentation (March 2023)
23 slides from Riot Platforms's investor presentation, Mar 24, 2023
Slide 1: Investor Presentation
Investor Presentation March 24, 2023 NASDAQ: RIOT
Slide 2: Forward Looking Statements
Forward Looking Statements Statements in this presentation that are not statements of historical fact are forward-looking statements that reflect management’s current expectations, assumptions, and estimates of future performance and economic conditions, and are not guarantees of future performance
Slide 3: Riot is the Leading Bitcoin-Driven Infrastructure Platform
Riot (NASDAQ: RIOT) is the Leading Bitcoin-Driven Infrastructure Platform 1 FY 2022 revenue1: Significant and 87,264 miners 9.8 EH/s hash rate $259 million deployed3,4 / deployed3,4 / expanding scale of Market cap2: 111,216 miners at full 12.5 EH/s hash rate operations deployment at full deployment
Slide 4: Best-in-Class Management Team Driving Value Creation
Best-in-Class Management Team Driving Value Creation 1 Strong operational benefits from vertically-integrated strategy 2 Unique power strategy drives low power costs 3 Leading hash rate deployment and growth Industry-leading financial strength, with growth plans 4 through year-end 2023 fully-funded
Slide 5: Strong Operational Benefits from Vertically-Integrated Strategy
1 Strong Operational Benefits from Vertically-Integrated Strategy Rockdale Facility Corsicana Facility ESS Metron ▪ Largest Bitcoin mining data center in North ▪ Second large-scale development located in ▪ Critical provider for Riot’s infrastructure America1 with 700 MW of total capacity in Corsic
Slide 6: Strong Operational Benefits from Vertically-Integrated Strategy
1 Strong Operational Benefits from Vertically-Integrated Strategy Strong operational benefits… …driving positive financial performance 1 Enhanced profitability Industrial-scale miner fleet “plugged-in” at Miner deployments an industry-leading, low-cost of power 2 Greater balance sheet flexibility C
Slide 7: Rockdale Facility – Largest Bitcoin Mining Facility in North America
1 Rockdale Facility – Largest Bitcoin Mining Facility in North America1 A B C D E F G Building Start-date2 Capacity Building Business type model A A Q2 2020 100 MW Air-cooled Hosting Self-mining, B B Q3 2020 100 MW Air-cooled hosting Immersion- C Q3 2020 100 MW Hosting cooled D Q3 2022 100 MW Air-co
Slide 8: Unique Power Strategy Drives Low Power Costs
2 Unique Power Strategy Drives Low Power Costs 1 2 Fixed power block gives Riot ability to benefit from high Offering significant additional benefits to Riot power costs when Bitcoin mining may be less economical Power price curve on July 2022 July 9, 2022 Economic decision to curtail power average
Slide 9: Leading Hash Rate Deployment and Growth
3 Leading Hash Rate Deployment and Growth 12.5 EH/s self-mining hash rate capacity target in H2 2023 June 2022 – July 2022: December 2022 – January 2023 ▪ Ended co-location hosting agreement with Coinmint’s ▪ In late Dec 2022, sections of piping in Buildings F and G Massena, New York facility (the “
Slide 10: Industry-Leading Financial Strength, with Growth Plans Fully-Funded
4 Industry-Leading Financial Strength, with Growth Plans Through Year- End 2023 Fully-Funded 7,058 BTC1 $230 million Cash balance2 Current liquidity Estimated BTC sales 3 Rockdale Facility Corsicana Facility Year-end 2023 4 5 expansion 400 MW build-out total liquidity 1. As of February 28, 2023. 2.
Slide 11: Technological Leader in Industrial-Scale Immersion-Cooling Infrastructure Build-Out
5 Technological Leader in Industrial-Scale Immersion-Cooling Infrastructure Build-Out ▪ Rockdale Facility is the largest known industrial-scale immersion- cooled Bitcoin mining operation ▪ Two fully immersion-cooled buildings (200 MW) for self-mining at the Rockdale Facility have been completed ▪ In
Slide 12: Key Decision-Making Across Multiple Bitcoin Cycles
6 Key Decision-Making Across Multiple Bitcoin Cycles 1 Dec 2019: Aug-Dec 2020: Mar 2021: Oct 2021: Dec 2021: Experienced Purchased 4,000 Purchased 30,600 Purchased Purchased Purchased S17 Pro miners S19 Pro / S19j Pro 43,500 S19j 9,000 S19j Pro 30,000 S19XP management team Early, large-scale miners
Slide 13: Operations Concentrated in Texas, the Most Attractive Jurisdiction for Bitcoin Mining
7 Operations Concentrated in Texas, the Most Attractive Jurisdiction for Bitcoin Mining 1 2 Business-friendly environment supportive of the Low-cost power and attractive demand-response economic opportunities generated by the Bitcoin programs which allow large-scale operators to mining industry make
Slide 14: Operations Concentrated in Texas, the Most Attractive Jurisdiction for Bitcoin Mining
7 Operations Concentrated in Texas, the Most Attractive Jurisdiction for Bitcoin Mining 3 #1 in renewable energy production1,2 in the US with wind and solar generation accounting for ~1/3rd of total energy generation in the ERCOT grid ERCOT energy generation fuel mix 0.4% 0.2% 11% 10% 1% 6% Wind and
Slide 15: Potential Upside from Increasingly Diversified, Vertically-Integrated Business Model
Potential Upside from Increasingly Diversified, Vertically-Integrated Business Model Riot Revenue Breakdown – FY 20221 FY 2024E EV/EBITDA Multiple2 Benchmarks Average multiple 9.2x 9.0x 8.4x 6.7x 7.2x 6.1x Bitcoin Miners 2.6x 25% Cipher CleanSpark Greenidge Iris Energy Marathon Stronghold Digital Di
Slide 16: Riot's vision is to be the world's leading Bitcoin-driven infrastructure platform
Riot’s vision is to be the world’s leading Bitcoin-driven infrastructure platform 16
Slide 17: Appendix
Appendix 1OoT 17
Slide 18: Management Team and Board of Directors
Management Team and Board of Directors ✓ Unique, Bitcoin-focused strategic vision Benjamin Yi Jason Les Executive Chairman of the Board Chief Executive Officer; Director ✓ Veteran public company expertise ✓ Supported by industry- leading infrastructure Jason Chung William Jackman Colin Yee Head of C
Slide 19: Anticipated Benefits of Immersion-Cooling
Anticipated Benefits of Immersion-Cooling Increased heat dissipation – immersion fluids are more thermally conductive than air, increasing heat absorption and moving it quickly away from miners Cleaner operating conditions – prevents dust and debris from getting into hardware, decreasing cleaning an
Slide 20: Local Community Engagement
Local Community Engagement 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. Largest e
Slide 21: Income Statement
Income Statement Years Ended December 31, 2022 2021 2020 (in $ thousands) (as restated) (as restated) Revenue: - Bitcoin Mining $ 156,870 $ 184,422 $ 11,984 - Data Center Hosting 36,862 24,546 - - Engineering 65,342 4,178 - - Other revenue 97 97 97 Total revenue 259,171 213,243 12,081 Cost of revenu
Slide 22: Non-GAAP Adjusted EBITDA
Non-GAAP Adjusted EBITDA Years Ended December 31, 2022 2021 2020 (in $ thousands) (as restated) (as restated) Net income (loss) $ (509,553) $ (15,437) $ (14,107) Interest (income) expense (454) 296 (85) Income tax expense (benefit) (11,749) 254 - Depreciation and amortization 107,950 26,324 4,494 EB
Slide 23: Non-GAAP Cost of Revenues
Non-GAAP Cost of Revenues Years Ended December 31, 2022 2021 2020 (in $ thousands) Bitcoin Mining Revenue $ 156,870 $ 184,422 $ 11,984 Cost of revenues 74,335 45,513 6,251 Power curtailment credits (11,991) - - Cost of revenues, net of power curtailment credits 62,344 45,513 6,251 Bitcoin Mining rev