Riot Platforms, Inc. · NASDAQ:RIOT
Riot Platforms — Q3 2024 Earnings Presentation
26 slides from Riot Platforms's earnings presentation, Oct 30, 2024
Slide 1: Riot Platforms Q3 2024 Update
NASDAQ: RIOT Riot Platforms (NASDAQ: RIOT) Q3 2024 Update October 30, 2024
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 Platforms is the Leading Vertically Integrated Bitcoin Mining Company
Riot Platforms is the Leading Vertically Integrated Bitcoin Mining Company 1 Hash Rate Deployed: Significant scale of Total revenue1: Q3 2024: YE 2024E: 1,104 Bitcoin mined1 / operations $85 million 28 EH/s 35 EH/s ~12.0 Bitcoin mined/day 2 Q3 2024 Cost to Q3 2024 Bitcoin Mining Q3 2024 Cost of powe
Slide 4: Q3 2024 Financial Update
Q32023 FY 2024Financial FinancialUpdate Update 400 MW Phase I at Corsicana Facility - Corsicana, Texas 4
Slide 5: Riot Platforms Q3 2024 Snapshot
Riot Platforms Q3 2024 Snapshot ▪ Consistent production year-over-year (1,106 BTC produced in Bitcoin produced 1,104 BTC Q3 2023) despite the block subsidy ‘Halving’ event in April 2024 Bitcoin sold 0 BTC ▪ Riot retained all Bitcoin produced in Q3 2024 Bitcoin held per 1M shares 1 31.4 BTC / 1M shar
Slide 6: 159% Increase in Hash Rate Year-over-Year and 28.2 EH/s Deployed
Riot Platforms – 159% Increase in Hash Rate Year-over-Year and 28.2 EH/s Deployed at End of Q3 2024 Global Network Hash Rate (EH/s) 1 Ending Hash Rate Deployed (EH/s) +59% 625 28.2 +159% ▪ Q3 2024 Self-Mining Hash Rate deployed up 159% over Q3 2023 393 10.9 ▪ Self-Mining Hash Rate deployed increased
Slide 7: Increase in Company Wide Revenue Year-over-Year
Riot Platforms – Increase in Company Wide Revenue Year-over-Year $40 m $37.7 $37.3 100% +1% +21% $84.8 $78.8 $79.3 -12% $35 m 90% +52% $4.7 73% $30.3 $5.5 $3.2 $70.0 80% $4.7 $12.6 $30 m Revenue $13.3 $4.6 $24.3 70% Gross$25 m ($ million) $51.9 $9.6 $20.4 60% Profit1 47% 43% / $5.1 $20 m 50% ($ mill
Slide 8: Bitcoin Mining Segment – Maintaining Healthy Gross Margins Despite Halving
Bitcoin Mining Segment – Maintaining Healthy Gross Margins Despite the Bitcoin ‘Halving’ and Network Hash Rate Growth Riot Revenue Breakdown – Q3 2024 4 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Avg. Hash $68/PH/s/Day $81/PH/s/Day $92/PH/s/Day $67/PH/s/Day $45/PH/s/Day 5% Price Bitcoin Mining Avg. Net
Slide 9: Q3 2024 Cost to Mine Increase Driven by Halving and Network Hash Rate Growth
Q3 2024 Cost to Mine Increase Driven by the Bitcoin ‘Halving’ and Network Hash Rate Growth Q2 2024 vs. Q3 2024 Cost to Mine per BTC ▪ Total Self-Mining costs net of power credits for Q3 2024 of $39.0MM compared to Q2 2024 costs of Q2 2024 Q3 2024 $21.4MM 1,2 844 BTC Mined 1,104 BTC Mined ▪ First ful
Slide 10: Engineering – Return to Revenue Growth
Engineering – Return to Revenue Growth Riot Riot Revenue Revenue Breakdown Breakdown –– Q3 202311 Q4 2024 5% 15% Bitcoin Mining $15.5 $13.3 Engineering $12.6 Other $9.6 Revenue 80% $4.7 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 ▪ Engineering segment finally shipped $5 m 100% large turnkey government p
Slide 11: FY 2024 Forecast – Riot Consolidated Cash SG&A by Quarter
FY 2024 Forecast – Riot Consolidated Cash SG&A by Quarter ($ million) Q4 run-rate forecast ▪ Run-rate cash SG&A for Q4 2024 $27.0 - $30.0 anticipated to be in the $27 – $30 Non-recurring litigation expenses million range Non-recurring M&A expenses Run-rate cash SG&A $36.4 ▪ Litigation expenses for Q
Slide 12: 2.0 GW of Power Capacity on the Path to 100 EH/s
2.0 GW of Power Capacity on the Path to 100 EH/s Kentucky Facilities 60 MW Developed Capacity 305 MW Potential Capacity Corsicana Facility 400 MW Developed Capacity 1,000 MW Potential Capacity Rockdale Facility 700 MW Developed Capacity 700 MW Potential Capacity 12
Slide 13: Infrastructure Pipeline, Miner Purchase Contract, and Acquisitions Provide Path to 100 EH/s
Infrastructure Pipeline, Miner Purchase Contract, and Acquisitions Provide Clear Path to 100 EH/s in Self-Mining Rockdale Rockdale Expansion Corsicana Phase 1 Corsicana Phase 2 Kentucky 1 Kentucky Future Expansion 2 Additional Growth 100.0 EH/s ▪ Phase II of the Corsicana Historical Facility is expe
Slide 14: Riot's Fleet Continues to Improve in Efficiency
Riot’s Fleet Continues to Improve in Efficiency Fleet Efficiency Improvements 23.0 J/TH -7% 21.4 J/TH -5% ▪ Riot’s purchase order of up to 20.3 J/TH -9% 18.5 J/TH 131,340 MicroBT miners have an average fleet efficiency of 18.5 J/TH ▪ Riot has received a total of 89,438 miners from this order to date
Slide 15: Fully-Funded Growth Plans Through Year-End 2025
Fully-Funded Growth Plans Through Year-End 2025 Increased from $143 million. Prior estimate from Q2 2024 included full development cost of 200 MW build-out. New estimate includes only 2025 portion of 600 MW build-out Decreased from $250 million. Capex requirements decreased due to removal of miner p
Slide 16: 35 EH/s – Vision to be the World's Leading Bitcoin-Driven Infrastructure Platform
Riot’s vision is to be the world’s leading Bitcoin-driven infrastructure platform 2024 Hash Rate Growth 2024 Hash Rate Target 2025 Hash Rate Growth +181% 12 EH/s 35 EH/s 35 EH/s +34% 35 EH/s 47 EH/s Q3 2024 Cost to 2024 & 2025 Cap Ex Mine1 Fully $35,376 Funded Per Bitcoin 1. See Appendi x slides 18-
Slide 17: Appendix
Appendix 1OoT 7
Slide 18: Definitions, Terms, and Reconciliations (Unaudited)
Definitions, Terms, and Reconciliations (Unaudited) Cost of Power: The Company defines Cost of Power as the cost of power directly used in the process of mining Bitcoin, less power curtailment credits divided by the kilowatt (“kWh”) hours used. Power is overwhelmingly the largest marginal input cost
Slide 19: Definitions, Terms, and Reconciliations (Unaudited)
Definitions, Terms, and Reconciliations (Unaudited) Fully Costed Gross Margin: The Company defines Fully Costed Gross Margin as Fully Costed Gross Profit (as defined below) divided by Revenue as calculated below. Fully Costed Gross Profit: The Company defines Fully Costed Gross Profit as Revenue les
Slide 20: Definitions, Terms, and Reconciliations (Unaudited)
Definitions, Terms, and Reconciliations (Unaudited) Cash SG&A: The Company defines Cash SG&A as Selling, General, and Administrative expenses less Stock-Based Compensation expense. Cash SG&A is used by the Company as we believe it better reflects the operational requirements of the Company by exclud
Slide 21: Definitions, Terms, and Reconciliations (Unaudited)
Definitions, Terms, and Reconciliations (Unaudited) Gross Profit: The Company defines Gross Profit as Fully Costed Gross Profit (as defined below) plus Power curtailment Credits plus Deprecia tion & Amortization expense. M&A Expenses: The Company defines M&A Expenses as Acquisition-related costs. 21
Slide 22: Definitions, Terms, and Reconciliations (Unaudited)
Definitions, Terms, and Reconciliations (Unaudited) Hash Cost: The Company defines Hash Cost as Cost of Revenue for self-mining operations, net of Power Curtailment Credits, excluding Bitcoin miner depreciation divided by the average Petahash per second per day (“PH/s/Day”) produced by operations ov
Slide 23: Management Team and Board of Directors
Management Team and Board of Directors ✓ Supported by industry-leading ✓ Unique, Bitcoin-focused strategic infrastructure expansion vision capabilities ✓ Veteran public company ✓ Highly experienced independent expertise directors Benjamin Yi Jason Les Executive Chairman of the Board Chief Executive
Slide 24: Q3 2024 Statement of Operations (Unaudited)
Q3 2024 Statement of Operations (Unaudited) 24
Slide 25: Q3 2024 Balance Sheet (Unaudited)
Q3 2024 Balance Sheet (Unaudited) 25
Slide 26: Non-GAAP Adjusted EBITDA (Unaudited)
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 is