Slide 1: Riot Platforms FY 2023 Update
Riot Platforms (NASDAQ: RIOT) FY 2023 Update February 22, 2024 NASDAQ: RIOT
Slide 2: 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 or actual results. Such sta
Slide 3: Riot Platforms is the Leading Vertically Integrated Bitcoin Mining Company
Riot Platforms is the Leading Vertically Integrated Bitcoin Mining Company Significant scale of operations Total revenue1 : $281 million Low-cost producer 1 2 FY 2023 Direct cost to produce 1 BTC2 : $7,539/BTC FY 2023 Bitcoin Mining gross margin2 : 74% Cash balance4 : $290 million Strong financial a
Slide 4: FY 2023 Financial Update
FY 2023 Financial Update 4 FY 2023 Financial Update Rockdale Facility, Building G (Immersion-Cooled) – Rockdale, Texas
Slide 5: FY 2023 Financial Highlights
5 Ending hash rate deployed 12.4 EH/s ▪ 28% increase year-over-year Bitcoin produced 6,626 BTC ▪ 19% increase year-over-year Bitcoin sold 6,185 BTC ▪ $176.2 million in proceeds received (avg. price of $28,491 per BTC) Bitcoin held 7,362 BTC ▪ $311.2 million1 Revenue $280.7 million ▪ 8% increase year
Slide 6: Continued Year-over-Year Growth in Production and Capacity
5,554 6,626 968 2,497 FY 2022 FY 2023 Riot Platforms – Continued Year-over-Year Growth in Production and Capacity 6 Ending miners deployed(# of miners) Ending hash rate deployed (EH/s) Bitcoin produced (# of BTC) 3 Bitcoin held (# of BTC) 9.7 12.4 FY 2022 FY 2023 +28% 6,974 7,362 FY 2022 FY 2023 88,
Slide 7: Company Wide Revenue Growth
Adj. EBITDA Margin 112% 32% (6)% 141% 76% $81.7 $24.3 $(3.1) $111.1 $214.0 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 $73.2 $76.7 $51.9 $78.8 $280.7 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Riot Platforms – Company Wide Revenue Growth 7 1. Indicates Non-GAAP measure. For a full reconciliation of the Non
Slide 8: Bitcoin Mining – Expanding Gross Margins
Bitcoin Mining – Expanding Gross Margins 8 10.5 EH/s 10.7 EH/s 10.9 EH/s 12.4 EH/s Q1 2023 Q2 2023 Q3 2023 Q4 2023 $48.0 $49.7 $31.2 $60.0 58% 70% 122% 63% 0% 20% 40% 60% 80% 100% 120% 140% Q1 2023 Q2 2023 Q3 2023 Q4 2023 Revenue ($ million) Non-GAAP gross margin (%) ▪ 63% Non-GAAP Gross Margin for
Slide 9: Data Center Hosting – Continuing to Address Legacy Contracts
$(15.5) $(9.8) $(2.7) $(17.0) (171%) (127%) (52%) (310%) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Non-GAAP gross profit ($ million) Non-GAAP gross margin (%) Data Center Hosting – Continuing to Address Legacy Contracts 9 $9.0 $7.7 $5.1 $5.5 Q1 2023 Q2 2023 Q3 2023 Q4 2023 ▪ Revenues marginally up vs. Q3 2023
Slide 10: Engineering – Continue to Work Through Record Backlog
Engineering – Continue to Work Through Record Backlog 10 $0.6 $1.1 $2.3 $(0.4) 4% 6% 15% -3% Q1 2023 Q2 2023 Q3 2023 Q4 2023 Gross profit ($ million) Gross margin (%) $16.1 $19.3 $15.5 $13.3 Q1 2023 Q2 2023 Q3 2023 Q4 2023 20% ▪ Q4 2023 decline in revenues driven by supply chain issues that delayed
Slide 11: Growth Plans – The Path to EH/s GW
11 Growth Plans – The Path to 100 EH/s 1 GW Corsicana Facility Development – Corsicana, Texas
Slide 12: Clear Path to 100 EH/s in Self-Mining Capacity
3.1 EH/s 9.7 EH/s 12.4 EH/s 12.4 EH/s 20.1 EH/s 24.4 EH/s 28.8 EH/s 33.4 EH/s 38.1 EH/s 2021A 2022A 2023A Q1 2024E Q2 2024E Q3 2024E Q4 2024E H1 2025E H2 2025E Corsicana and Additional Growth 12 Historical Rockdale MicroBT Miner Order Provides Clear Path to 100 EH/s in Self-Mining Capacity 100+ EH/s
Slide 13: MicroBT Miner Order Secures Future ASIC Miner Supply and Pricing
$- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $- $20 $40 $60 $80 $100 $120 $140 Jul-20 Jan-21 Jul-21 Jan-22 Jul-22 Jan-23 Jul-23 Under 20 J/Th 20 to 25 J/Th 25 to 28 J/Th BTC Price 13 Source: Hashrate Index by Luxor as of December 31, 2023. ▪ Riot began testing MicroBT miners in Q4 of 2
Slide 14: Recent MicroBT Order Significantly Upgrades Riot's Mining Fleet
14 Recent MicroBT Order Significantly Upgrades Riot’s Mining Fleet ▪ Riot’s purchase of 99,840 MicroBT miners has an average fleet efficiency of 20.0 J/TH ▪ Riot’s total fleet efficiency will be 22.4 J/TH in 2025 after deployment of initial order, 19.8 J/TH if entire option exercised Model Quantity
Slide 15: Estimated Bitcoin Production Cost and Corsicana Build-out
Q4 2023 Estimated Bitcoin Production Cost to Mine Corsicana Facility 400 MW build-out (remaining) Corsicana Facility additional 200 MW build-out Corsicana miner purchases 15 1. As of December 31, 2023. 2. As of December 31, 2023. Based on market price of BTC of approximately $42,265 as of December 3
Slide 16: Power Strategy in FY 2023
16 Power Strategy in FY 2023 Air-Cooled Rack in Building D of Rockdale Facility
Slide 17: Long-Term Power Contracts Form the Basis of Power Strategy
17 ▪ Riot powers down operations and returns power back to the utility when market prices are higher than Bitcoin mining revenues ▪ Riot receives power credits for difference between market power price and Riot’s fixed power price ▪ Economic maximization between Bitcoin mining and electricity market
Slide 18: Sell Power When Prices Exceed Bitcoin Price
-$10/MWh $10/MWh $30/MWh $50/MWh $70/MWh $90/MWh $110/MWh $130/MWh $150/MWh $170/MWh $190/MWh $210/MWh January-23 April-23 July-23 October-23 LZ South Average Settlement Price $/MWh Mining Revenue December-23 18 Riot's Power Strategy in FY 2023 – Sell Power When Prices exceed Bitcoin Price 1. ERCOT
Slide 19: Vision: World's Leading Bitcoin-Driven Infrastructure Platform
+132% 12.4 EH/s 28.8 EH/s Riot’s vision is to be the world’s leading Bitcoin-driven infrastructure platform 19 2024 Hash Rate Growth +33% 28.8 EH/s 38.1 EH/s 2025 Hash Rate Growth $7,539 Per Bitcoin 2023 Cost to Mine1 Fully Funded 2024 Cap Ex New Large-Scale Facility Energized in Q1 2024 1. Twelve m
Slide 20: Appendix
Appendix 20
Slide 21: Management Team and Board of Directors
21 Management Team and Board of Directors ✓ Unique, Bitcoin-focused strategic vision ✓ Veteran public company expertise Jason Les Chief Executive Officer; Director Benjamin Yi Executive Chairman of the Board William Jackman Executive Vice President, General Counsel Colin Yee Executive Vice President
Slide 22: Statement of Operations
Statement of Operations a a a Revenue: Bitcoin Mining S 188,996 Ss 1ss422 Data Center Hosting 282 24546 Engineering 641303 ‘$178 Other revenue 97 97 Total revenue 20878 FIEPIE Costs and expenses Cost of revenue ‘Bitcoin Mining 96; 74335 4853 Data Center Hosting 97.122 61,306 32.998 Engineering 60.61
Slide 23: Balance Sheet
Balance Sheet ASSETS Curent assets (Cash and cash equivalents Accounts receivable, net Contract asets,inchiding retainage of $3,166 and $3,012, respectively repaid expenses and other current assets, Bteoin Derivative aset,curent portion ‘Future power credits, current portion Total current asets Fint
Slide 24: Non-GAAP Adjusted EBITDA
24 Non-GAAP Adjusted EBITDA (Unaudited) * Indicates Non-GAAP measure. We use Adjusted EBITDA to eliminate the effects of certain non-cash and/or non-recurring items, that do not reflect our ongoing strategic business operations. Adjusted EBITDA includes impairment of Bitcoin charges. Adjusted EBITDA
Slide 25: Non-GAAP Cost of Revenues
25 Non-GAAP Cost of Revenues (Unaudited) * Indicates Non-GAAP measure. We use Adjusted EBITDA to eliminate the effects of certain non-cash and/or non-recurring items, that do not reflect our ongoing strategic business operations. Adjusted EBITDA includes impairment of Bitcoin charges. Adjusted EBITD