Riot Platforms, Inc. · NASDAQ:RIOT
Riot Platforms — Riot Blockchain — Investor Presentation (March 2018)
36 slides from Riot Platforms's investor presentation, Mar 15, 2018
Slide 1: Investor Presentation March 2018
IOT RBLOCKCHAIN A Nasdaq RIOT INVESTOR PRESENTATION March 2018
Slide 2: Disclaimer
This presentation and the information contained herein are confidential and the property of Riot Blockchain Inc. This presentation isintended to introduce you to Riot Blockchain. The information presented is not, and is not intended to be, an offer to sell or the solicitation of an offer to buy any
Slide 3: Riot Blockchain overview
Riot Blockchain Inc.is a NASDAQ listed company focused on blockchain technology. Riot Blockchain intends to gain exposure to the blockchain ecosystem through its mining operations, internally developed businesses, joint ventures, and targeted investments in the sector. Its primary focus is on Bitcoi
Slide 4: Part of the disruptive technology
Riot Blockchain aims to be part of the disruptive technology that appears poised to disrupt the future of transactions. For those companies using outdated technology, the revolution could become a violent disturbance.
Slide 5: Snapshot, strategy, investments, management, capital structure
~ ° ———— ' WPRIOE arte caccccreeec nce ae 2 4 a - Snapshot.. = Riot’s Strategy . ad * Cryptocurrency Mining J - Strategic Investment: Digital Energy Green. a ag i ] » i Management “ y ~ Capital Structure . ¢
Slide 6: Snapshot: NASDAQ-listed blockchain company
•NASDAQ-listed blockchain technology focused company •$118 million market cap* •NASDAQ:RIOT •NASDAQ-listed mixed play company with businesses in online retail along with Blockchain •$1.4 billion market cap* •NASDAQ:OSTK •Listed on the U.S. OTC Bulletin Board •$1.9 billion market cap* •OTCBB: GBTC
Slide 7: Riot's strategy
• Cryptocurrency Mining •8,000 ASIC Miners deployed by May • Blockchain Technology •Coinsquare (12.97%) •TessPay (52%) •Verady •Digital Green (100%) • Digital Currency Exchange •Plans to launch a U.S. Digital Currency Exchange in select states
Slide 8: Market Landscape
MARKET LANDSCAPE One of the only Companies Listed on NASDAQ or NYSE Dedicated to Blockchain lIOT SBLOCKCHAIN + 2 ~ EEE cov a > FENOUSH MeraSTanie — FENBUS ®D oor a ° Private Funds Seeking Exposure to Cryptocurrencies @ICT,
Slide 9: Investment strategy
Our investment strategy consists of operating one of the largest cryptocurrency mining operations listed on the NASDAQ or NYSE; identifying unique projects which decentralize markets; combining real world applications with an active development team, strong fundamentals, and large addressable market
Slide 10: Cryptocurrency mining operation
§Largest cryptocurrency mining operation among publicly-listed companies on the NASDAQ §Currently, there are approximately 3,000 ASIC miners deployed and mining §Anticipate deployment of approximately 8,000 ASIC miners by May §Located in a 107,600 sq. ft facility in Oklahoma with power of 12MW upon
Slide 11: Integration of mining and exchange
•Potential integration between the coin supply generated from the cryptocurrency mining operation matching the demand generated from the planned launch of a U.S. digital currency exchange
Slide 12: Logical Brokerage and digital currency exchange
•Signed letter of intent to acquire Logical Brokerage, a registered member of the Commodity Futures Trading Commission and the National Futures Association •Planned launch this year of a digital currency exchange serving select states within the United States
Slide 13: Public Market Comparables
PUBLIC MARKET COMPARABLES AVG DAILY CRYPTOCURRENCY OW NE SUY ROO ONAT, VOLUME >10% OF MARKET NASD eOR OPERATIONS IN INDE RETIN BOREL AN OF SHARES CAPITALIZATION NYSE LISTED CRYPTOCURRENCY TECHNOLOGY mee EXCHANGE INVESTMENTS, CULSTANDING CB) (LAST 30 DAYS)* Riot Blockchain Ve v v v v $118 Blockchain
Slide 14: Comparables
Comparables . Market Ca Deployed Capacit Mkt Cap/ Deployed Expected Mkt Cap/ Exp. Hash Caufiyi Weer (us $m) : “ hae a ae fie en ee Rate oe (us $m) Blockchain Mining Ltd. BLCM-TASE $100.0 200.0 $0.5 DMG Blockchain Solutions DMGI-TSXV $85.8 7S $11.4 Hashchain KASH-TSX $27.4 12 $22.3 Hive HIVE-TSXV $35
Slide 15: Strategic Investment: Coinsquare
STRATEGIC INVESTMENT: COINSQUARE Ocoinsquare + Riot Blockchain has a strategic investment in Coinsquare (12.97%) Coinsquare is a leading digital currency exchange in Canada February 2018 financing implies a C$430M valuation (US$334M)* company-wide valuation for Coinsquare * USD/CAD 1.29 @19T
Slide 16: Coinsquare platform features
Coinsquare is built using robust security software An all-new website recently launched, reducing the cost of user acquisition & improving user acquisitionrate Android & iOS apps have both successfully launched, providing a one-stop shop for digital asset news &trading Coinsquare enables trading fro
Slide 17: Coinsquare, leading Canadian exchange
Easy-to-use, secure, cost-efficient, and trustworthy way to buy digital assets. Coinsquare a leading Canadian exchange for digital currencies by trading volume according to CBIX.ca
Slide 18: TESS merger with Cresval
•Riot Blockchain has acquired 52% of TESS Inc. •TESS has subsequently signed a definitive merger agreement to merge with Cresval Capital Corp •Riot Blockchain anticipates receiving 41.5 million shares in the combined entity post Merger
Slide 19: TESS blockchain escrow service
§Plans to develop a blockchain-based escrow service for wholesale telecom carriers that would guarantee payment in full and on-time §Rather than enter traditional written legal agreements, carriers would enter into a TESS SMART CONTRACT, whereby the terms are represented programmatically and are imm
Slide 20: Strategic Investment: TESS customer prepay model
Customer Prepay Model STRATEGIC INVESTMENT: TESS The TESS Solution | Planned Model Customer Financed Model
Slide 21: Strategic investment in Verady
•Riot Blockchain has made a strategic investment in Verady •Verady provides cryptocurrency accounting and audit technology services through VeraNet, where financial institutions, corporations and individuals can audit, account and report on blockchain assets.
Slide 22: Digital Green Energy Corp
•Riot has established Digital Green Energy Corp as a wholly owned subsidiary to explore international infrastructure opportunities. •The Company is identifying environmentally friendly projects with large energy capacity and a cost-efficient rate for cryptocurrency mining and data center operations.
Slide 23: Management: O'Rourke and Chang
Mr. O'Rourke is the Chief Executive Officer and Chairman of the Board of Directors of Riot Blockchain. Since 2011, he has also served as the Managing Member of ATG Capital LLC, an investment fund focused on small and mid-cap growth companies possessing distinct competitive advantages and superior ma
Slide 24: Management: operations team
With more than 18 years of experience managing critical infrastructure for various high-tech industries, Mr. Robertsen was most recently Chairman and CEO of Bitfury Norway AS. Mr. Robertsen has also held positions as: Head of Critical and DC Facilities Management at Datacom Systems; Regional Facilit
Slide 25: Board of directors
Mr. Mancini will serve as Lead Director and will serve as Chairman of the Audit Committee, as a member of the Nominating and Corporate Governance Committee, and as a member of the Compensation Committee. Mr. Mancini combines his experience as a former Canadian and U.S. senior corporate executive, co
Slide 26: Capital structure as of March 2018
oy rv 6 4 sed a of March ly 2018) > i 2 BEI Common a Series B Preferred Restricted ‘Stock Units Outstandin Stock Outstanding and Stock Options 2 (As Converted) *Subject to Vesting 13,177,615 1,028,000 964,126 Warrants Exercisable at | Warrants Exercisable at Total Fully Diluted $10.88 Per Share $40.
Slide 27: Gateway to blockchain
led by BTC Mpdia; f S4iae, 4 ay IN_& THE Dy, ; QUE av Se as lIOT We intend to help develop and provide a gateway to blockchain BLOCKCHAIN We are one of the only Nasdaq listed companies with this focus
Slide 28: Thank You
(2)1IOT NASDAQ: RIOT THANK YOU! John O’Rourke, Chairman and CEO Riot Blockchain Inc. E: John@riotblockchain.com www.riotblockchain.com
Slide 29: Appendix
2)1IOT NASDAQ: RIOT Appendix
Slide 30: Blockchain Overview
BLOCKCHAIN OVERVIEW g, as ABLOCKCHAINISA BLOCKS ARE LINKED a lS CONTINUOUSLY GROWING AND SECURED USING SERED LIST OF RECORDS (BLOCKS CRYPTOGRAPHY ( y CONSENSUS AND IS THEN PERMANENTLY ADDED TO THE BLOCKCHAIN
Slide 31: What is Blockchain: How it Works
Whatis Blockchain How it Works TRANSACTIONS MINERS BLOCK Transactions Are Miners Create a Block and Broadcast to the Network Include Transactions PROCESS STARTS OVER BLOCK PUZZLE HOW THE BITCOIN — BLOCKCHAIN WORKS Miner Solves Puzzie And Creates AProot of Work VERIFICATION PROOF OF WORK ay PROOF OF
Slide 32: Blockchain Applications
BLOCKCHAIN APPLICATIONS
Slide 33: Cryptocurrency Overview
CRYPTOCURRENCY OVERVIEW WORLDWIDE NO CENTRAL DIRECT TRANSACTIONS TRANSACTIONS CRYPTOCURRENCY + REPOSITORY OR SINGLE PEER-TO-PEER VERIFIED BY NETWORK RECORDED INA DIGITAL PAYMENT SYSTEM ADMINISTRATOR TRANSACTIONS NODES BLOCKCHAIN (LEDGER)
Slide 34: Bitcoin overview
Bitcoin is a new cryptocurrency that was created at the end of 2008 by an unknown person using the alias Satoshi Nakamoto itcoin is a consensus network that enables a new payment system using digital assets. It is the first decentralized peer-to-peer payment network that is powered by its users with
Slide 35: Cryptocurrency Market Size
CRYPTOCURRENCY MARKET SIZE Cryptocurrency market value has increased from $17.7 billion to over $471 billion now Zoom 1d 7d Im 3m ty YTD ALL From | Dec 27,2016 | To | Mar5,2018 | == ° _ TT ne Jan17 Feb17)0 Mar‘I7 Apr'l7— May"I7, Jun "17 Jul17 Aug? Sep'17— O17 Nov'17_— Dac "17 Jan 18 Feb"1S Mar"I3, 2
Slide 36: Cryptocurrency Causes for Growth
@ICT, CRYPTOCURRENCY CAUSES FOR GROWTH $471B MARKET CAP As at 315/18 httpsilcoinmarketcap.com WORLDWIDE DEMAND FOR CRYTPO CURRENCY LARGE NEW FUNDS ENTERING THE MARKET RISING ADOPTION / GOING MAINSTREAM