Riot Platforms, Inc. · NASDAQ:RIOT
Riot Platforms — Investor Presentation (September 2023)
29 slides from Riot Platforms's investor presentation, Sep 6, 2023
Slide 1: Riot Platforms Corporate Presentation
Riot Platforms (NASDAQ: RIOT) Corporate Presentation September 6, 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: H1 2023 Results Reaffirm Key Strengths and Position as Leading Bitcoin Infrastructure Platform
Riot Platforms (NASDAQ: RIOT) H1 2023 Results Reaffirm Key Strengths and Position as the Leading Bitcoin Infrastructure Platform 1 Significant scale of Total revenue1: 95,904 miners deployed / 3,890 Bitcoin mined1 / operations $150 million 10.7 EH/s hash rate ~21.5 Bitcoin deployed2 mined/day 2 Dire
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 Leading hash rate deployment and growth 3 Unique power strategy in Texas drives low power costs Industry-leading financial strength, with near-term growth 4 plans to 20.1 EH/s, an
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 of Riot’s infrastructure America1 with 700 MW of total capacity in Corsica
Slide 6: … Driving Positive Financial and Operational Benefits
1 … Driving Positive Financial and Operational Benefits 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 Controlled i
Slide 7: Leading Hash Rate Deployment and Growth
2 Leading Hash Rate Deployment and Growth 40.0 EH/s Rockdale Rockdale Building ‘G’ Corsicana Optional MicroBT Order 35.4 EH/s 35.0 EH/s 30.0 EH/s Historical 25.0 EH/s 20.1 EH/s 20.1 EH/s 20.0 EH/s 16.3 EH/s 15.0 EH/s Assuming full 12.5 EH/s exercise of additional 10.5 EH/s 10.7 EH/s 10.7 EH/s MicroB
Slide 8: MicroBT Miner Order Secures Future ASIC Miner Purchase Supply and Pricing
2 MicroBT Miner Order Secures Future ASIC Miner Purchase Supply and Pricing Historical ASIC & BTC Price History 1 ▪ Riot began testing MicroBT miners in Q4 of 2022 $140 25 to 28 J/Th Under 25 J/Th BTC Price $70,000 ▪ Consistently demonstrates high uptime ▪ Purpose built for immersion-cooling use $12
Slide 9: Operations Concentrated in Texas, the Most Attractive Jurisdiction for Bitcoin Mining
3 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 10: Proportion of Renewable Energy Production in ERCOT Continues to Increase
3 Proportion of Renewable Energy Production in ERCOT Continues to Increase 3 #1 in renewable energy production1,2 in the US with wind and solar accounting for 48% of total energy generation capacity in the ERCOT grid by 2024 ERCOT energy generation fuel mix 0.2% 0.4% 0.2% 3% ▪ By the end of 2024, ~4
Slide 11: Long-Term Power Contracts Form the Basis of Riot's Power Strategy
3 Long-Term Power Contracts Form the Basis of Riot’s Power Strategy Riot's Power Strategy Employed Through 3 Primary Mechanisms 1 2 3 ERCOT Ancillary ERCOT Manual Curtailment 4 Coincident Peak Services ("4CP") Program ▪ Riot powers down operations ▪ Riot competitively bids to ▪ Riot voluntarily powe
Slide 12: Utilization of Power Strategy Drives Significant Reductions in Effective Power Costs
3 Utilization of Power Strategy Drives Significant Reductions in Effective Power Costs to Riot Average Power Price per Month Average Powerper MWh Price for Per LoadPer Month Zone South and Riot MWh $150.00 ▪ Riot’s unique power strategy consistently outperforms $118.4 buying spot power from $100.00
Slide 13: Fixed Power Block Gives Riot Ability to Benefit from High Power Costs
3 Fixed Power Block Gives Riot Ability to Benefit from High Power Costs when Bitcoin Mining may be Less Economical $210/MWh 1 2 LZ South Average Settlement Price $/MWh Mining Revenue $190/MWh $170/MWh Average settlement $150/MWh price >$500/MWh $130/MWh Riot’s $110/MWh average cost of power 3 $90/MW
Slide 14: Riot's Power Strategy in Action – Economic Optimization on June 20, 2023
3 Riot’s Power Strategy in Action – Economic Optimization on June 20, 2023 $5,000.00 100.0% Riot receives $4,500.00 Power and 90.0% Demand $4,000.00 Response Credits4 80.0% $3,500.00 70.0% $3,000.00 60.0% Riot sells power $2,500.00 back when 50.0% power prices Riot mines exceed BTC $2,000.00 BTC at
Slide 15: Industry-Leading Financial Strength, with Growth Plans Fully-Funded
4 Industry-Leading Financial Strength, with Growth Plans Through Year- End 2024 Already Fully-Funded and Independent of External Financing $231 million $173 million $178 million optional order 4 7,265 BTC1 $289 million Cash balance 1 2 3 4 Q2 2023 Estimated BTC sales Corsicana Facility Corsicana min
Slide 16: Corsicana Facility – Development of Riot's Second Large-Scale Facility
4 Corsicana Facility – Development of Riot’s Second Large-Scale Facility [1 GW] Continues G Corsicana Phase 1 Capex Schedule1 $81mm $333mm $150mm $102mm Corsicana Facility Development Capex spent as of Q3-Q4 2023 2024 capex Total phase 11 Q2 2023 capex estimate estimate capex 1. Phase 1 of the Corsi
Slide 17: Corsicana Facility – First Batch of ASIC Miners to go Online in Q1 2024
4 Corsicana Facility – First Batch of ASIC Miners to go Online in Q1 2024 Q4 2022 Q2 2023 Q2 2024 Groundbreaking Ceremony Q4 2023 Inventory Building Second Batch of Kick-off Ground Works Tanks Commissioning Cut & Fill Miners Online Q2 2023 Q1 2024 Cut & Fill Q4 2023 First Batch of Structural Metal B
Slide 18: Technological Leader in Industrial-Scale Immersion-Cooling Infrastructure Build-Out
5 Technological Leader in Industrial-Scale Immersion-Cooling Infrastructure Build-Out Rockdale Facility Corsicana Facility Benefits of Immersion- Cooling1 Increased heat dissipation – immersion fluids are more thermally conductive than air, increasing heat absorption and moving it quickly away from
Slide 19: 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 miners miners miners miner
Slide 20: Riot is Strongly Positioned Going into the Halving
6 Riot is Strongly Positioned Going into the "Halving" 1 38.0 J/TH Average 33.4 J/TH Network Leading 31.4 J/TH Efficiency of 1 29.0 J/TH 2 27.7 J/TH 32.5 J/TH Fleet 1 25.3 J/TH 25.7 J/TH Efficiency 24.7 J/TH N/A N/A N/A Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 2 $20,130 $17,301
Slide 21: 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 Rendering of Full Development of Corsicana Facility 21
Slide 22: Appendix
Appendix 1OT
Slide 23: Rockdale Facility – Largest Bitcoin Mining Facility in North America
Rockdale Facility – Largest Bitcoin Mining Facility in North America1 Building Start-date Capacity Building Business type model A B C D E F G 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-cooled
Slide 24: 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 Executive
Slide 25: Statement of Operations (Unaudited)
Statement of Operations (Unaudited) Six Months Ended June 30, 2023 2022 (in $ thousands, except for per share amounts) Revenue: - Bitcoin Mining $ 97,765 $ 104,096 - Data Center Hosting 16,703 19,528 - Engineering 35,459 29,062 - Other Revenue 48 48 Total Revenue $ 149,975 $ 152,734 Costs and Expens
Slide 26: Balance Sheet (Unaudited)
Balance Sheet (Unaudited) As of June 30, As of December 31, 2023 2022 (in $ thousands, except for per share amounts) Assets: Current Assets: Cash and Cash Equivalents $ 289,176 $ 230,328 Accounts Receivable, net 13,181 26,932 Contract Assets 19,063 19,743 Prepaid Expenses and Other Current Assets 20
Slide 27: Balance Sheet (Unaudited) (continued)
Balance Sheet (Unaudited) (continued) As of June 30, As of December 31, 2023 2022 (in $ thousands, except for per share amounts) Liabilities and Stockholder's Equity: Current Liabilities: Accounts Payable $ 12,616 $ 18,445 Contract Liabilities 3,117 8,446 Accrued Expenses 27,307 65,464 Deferred Gain
Slide 28: Non-GAAP Adjusted EBITDA (Unaudited)
Non-GAAP Adjusted EBITDA (Unaudited) Six Months Ended June 30, 2023 2022 (in $ thousands, except for per share amounts) Net Income (Loss) $ (83,375) $ (316,981) Interest Income (Expense) (1,013) 357 Income Tax Expense (Benefit) (4,857) (5,887) Depreciation and Amortization 125,502 34,807 EBITDA $ 36
Slide 29: Non-GAAP Cost of Revenues (Unaudited)
Non-GAAP Cost of Revenues (Unaudited) Six Months Ended June 30, 2023 2022 (in $ thousands, except for per share amounts) Bitcoin Mining: Revenue $ 97,765 $ 104,096 Cost of Revenues 45,546 37,089 Power Curtailment Credits (10,589) (2,820) Cost of Revenues, net of Power Curtailment Credits 34,957 34,2
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