Riot Platforms, Inc. · NASDAQ:RIOT
Riot Platforms — Riot Blockchain — Investor Presentation (May 2022)
38 slides from Riot Platforms's investor presentation, May 18, 2022
Slide 1: Riot Blockchain, Inc.
1OT Riot Blockchain, Inc. NASDAQ: RIOT / MAY 16, 2022
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS
Slide 3: Riot's mission
Riot’s mission is to become one of the most relevant and significant companies supporting the Bitcoin network and greater Bitcoin ecosystem
Slide 4: Investment Highlights
INVESTMENT HIGHLIGHTS A mS & Atrailblazing Serves as a Clear and Demonstrated US Bitcoin public vehicle _ significantly track record mining platform _for investors de-risked of success seeking exposure —_ pathway across to Bitcoin for expansion organization Riot provides a best-in-class Bitcoin mini
Slide 5: Riot At-a-Glance
rR 1 O T At-a-Glance [enn evoem ani a0ea ‘Ticker Symbol on NASDAG Share Price ‘Shares issued & Outstanding ‘Avg. Daly Trading Volume Net cash [BTC Held on Balance Sheet Current Riot Hashing Capacity Future Riot Hashing Capacity RIOT $797 $127.0 MILLION® 8.75 MILLION® $115.6 MILLION® 6,320 Tc 47 EH/s
Slide 6: Riot: a leader in Bitcoin mining
Riot: a leader in Bitcoin mining
Slide 7: Riot's leading position driven by North America's largest Bitcoin mining facility
Riot’s leading position is driven by North America’s largest Bitcoin mining facility WHINSTONE US 200 ACRES 750.MW. Rockdale, Texas total capacity 2.9¢/kWh? or Sas
Slide 8: Gigawatt Expansion
Riot's leading position is enhanced by its 1 GIGAWATT EXPANSION In April 2022, Riot announced that it initiated a large-scale, 1 gigawatt ("GW") development in Navarro County, TX to expand its Bitcoin mining and hosting capabilities, ‘The expansion has begun with the development of an 1,000 MW -270
Slide 9: A Proven Leader in Execution
A PROVEN LEADER IN EXECUTION 2018 2020 2021 2022+ Riot began mining Riot movedits entire Acquired Whinstone, Completing Bitcoin at 12 MW" ‘mining feet to ‘2300 MW Bitcoin’ 400 MW expansion ‘Oklahoma City CCoinmint’s Bitcoin ‘ining facility in ‘at Whinstone facity, which it mining hosting, Rockdale,
Slide 10: A Leader in Developed Capacity
A LEADER IN DEVELOPED CAPACITY 388 8 8 DEVELOPED CAPACITY (HW)
Slide 11: A Leader in Future Capacity
A LEADER IN FUTURE CAPACITY In April 2022, Riot announced its 1 gigawatt expansion into Navarro ‘County, Texas, more than doubling future expected total capacity + Te fist phase 9 400 MW bulld-out, has ‘gun with mining ana hosting operations fexpacted to commence in July 2028 + Infrastructure panned
Slide 12: A Leader in Self-Mined Bitcoin Production
A LEADER IN SELF-MINED BITCOIN PRODUCTION $b ee 8
Slide 13: A Leader in Hash Rate Deployed
A LEADER IN HASH RATE DEPLOYED 100 90 80 HASH RATE DEPLOYED (EH/=)
Slide 14: Robust Hash Rate Growth
ROBUST HASH RATE GROWTH Since 2019, Riot has, executed multiple long-term purchase orders with Bitmain, with expected monthly deliveries through Jan 2023 Riot’s aggregate Bitcoin self-mining hash rate capacity estimated to reach: 12.8 EH/s by Jan 2023
Slide 15: A Leader in Cost of Production
A LEADER IN COST OF PRODUCTION QI 2022 average net power cost for Riot self-mining at Whinstone was 2.9¢/kWh RIOT'S POWER STRATEGY INCLUDES: Long-term, low-cost power Purchase agreement Participation in grid revenue programs POWER cos (s/mwny 4g festtim power 5 procurement eee
Slide 16: A Leader in Bitcoin Mining Technology
A LEADER IN BITCOIN MINING TECHNOLOGY + First industrial-scale = Immersion-cooled Bitcoin mining operation + 200 MW of Whinstone ee {and 400 MW of Corsicana |s committed to ultlzing Immersion-cooling technology PROLONGED. INCREASED IMPROVED: + Immersion-cooling helps MACHINE LIFE HASH RATE FINANCIAL
Slide 17: Vertical Integration Is a Superior Long-Term Strategy
VERTICAL INTEGRATION IS A SUPERIOR LONG-TERM STRATEGY More direct control over owned infrastructure drives superior financial returns and greater financial flexibility 1 STRATEGIC BENEFIT CONTROL More Control over Business + Miner Deployments, + Development + Security + Suppliers + Better long-term
Slide 18: 1st Benefit in Action: Control
18' BENEFIT IN ACTION: CONTROL cost RISK Ability to "plug in” miners upon arrival at known cost (do not need to constantly negotiate with hosting providers) SUPPLIER RISK No reliance on third-party hosting providers, limiting ‘counter-party risk EXECUTION RISK ~ Control over infrastructure developme
Slide 19: 2nd Benefit in Action: Superior Financial Profile
2"° BENEFIT IN ACTION: SUPERIOR FINANCIAL PROFILE f tf ee Se wenieaganeningr i Serendip aa Hi ae Es = {© Non-vertica Integration RR 0
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Slide 21: Relevant Financial Highlights
RELEVANT FINANCIAL HIGHLIGHTS
Slide 22: Riot Blockchain, Inc. Contact
1OT Riot Blockchain, Inc. CONTACT: in@riotblockchain.com
Slide 23: Appendix
Appendix
Slide 24: Illustrative Mining Build
ILLUSTRATIVE MINING BUILD ‘TOTAL OVER 20226 20236 20242 FIRST 3 YEARS (OF LIFESPAN. 014 008 004 026 Direct Costs (MESES $922 $922 $2,767 ercéined (MERE 2374 1200 7,468 DA TGIEERSEM s2c,352.000 $26352000 $26352000 $79,056,000
Slide 25: Electrical Infrastructure
ELECTRICAL INFRASTRUCTURE THE BACKBONE OF THE THE DIGITAL ECONOMY wit ~~ Ei— fey e-7 ft tf iat —- S_, it Medium Votage ad Mounted Pow Power Supply
Slide 26: Securing Critical Components for Whinstone Buildout
SECURING CRITICAL COMPONENTS FOR 700 MW WHINSTONE BUILDOUT A] a a a REQUIRED PURCHASED DELIVERED. units UNITS UNITS UNITS) INSTALLED High Voltage Transformers 7 7 7 7 Medium Voltage Transformers 284 204 204 204 Medium Voltage Cables 89,400 89,400 77,400 74,200 Low Voltage Cables 682,600 1662600 1,56
Slide 27: Acquisition of ESS Metron
ACQUISITION OF ESS METRON ESSHETRON On December 1, 2021, Riot acquired ESS Metron, a premier provider of highly-engineered electrical equipment solutions, for approximately $50 million” aga OQ) =e Giese te ‘Over sity yours Dovriks Enhances Rots Creal component in Gfawulencoand _procirament ot compet
Slide 28: Key Assumptions to 2nd Benefit in Action
KEY ASSUMPTIONS TO “2 BENEFIT IN ACTION: SUPERIOR FINANCIAL... OVERALL ASSUMPTIONS + Ting 1-year forecast wth tring date of VVZ2 wih having estimate to cecur in May 2028 and May 2028 + ovo Starting network te of 299 vs rang 1, torment when aang ocr, Wren {lena cori acumed trot rework sh fe decnes by
Slide 29: Non-GAAP Figure Reconciliation
NON-GAAP FIGURE RECONCILIATION NETINCOME (LOSS) $5562 -$07928) $0287) Interest (income) expense 220 236 5) Depreciation and amortization sass 2658408 canon ss0408 Sinan s00258) Nomcash/nonecuring operating expense: ‘Stockbesed compensation expense som cast 5407 ‘Acquistion related cons 7% 208 P* ‘Ch
Slide 30: ESG Focus
ESG Focus
Slide 31: Bitcoin Mining: Energy Use
BITCOIN MINING: ENERGY USE 76% of Bitcoin miners utlize renewable energy as @ part oftheir eneray ‘mix, with renewable ‘energy accounting for -40% of overall energy mix” Bitcoin miners are incentivized to minimize their Global Energy Production power costs and seck ‘out under-utilized renewables inf
Slide 32: Bitcoin Mining: Enabling the Energy Transition
BITCOIN MINING: ENABLING THE ENERGY TRANSITION Solar and wind are Many new solar and Grid congestion from Bitcoin mining the least expensive wind deployments _intermittent supply operations provide the ‘energy sources in ‘re limited oF ‘can be alleviated intermittent demand the world; however, delay
Slide 33: Bitcoin
Bitcoin 101
Slide 34: What Is Bitcoin?
WHAT IS BITCOIN? + Dominant cryptocurrency with a US $600 billion global ‘market capitalization® Decentralized ~it is not controlled by any government, entity, or person (as compared to fiat currencies) ‘Sound money, with a supply ‘of only 21 millon coins coded into its supply schedule The data stru
Slide 35: Bitcoin Mining: The Process
BITCOIN MINING: THE PROCESS Repeatedly guessing inputs into an algorithm until the desired output is observed a A & e¢ ® Bitcoin COncea biockis After is solved, The new block For solving transactions are formed, miners thetransactions. of verified the puzzle, pooled together compete to. are "verifie
Slide 36: Bitcoin Mining: Profitability Drivers
BITCOIN MINING: PROFITABILITY DRIVERS Annual Mining Profitability = (sce) Ces) (cze)- Creer) -( 33] (se) WHAT RIOT CONTROLS, WHAT RIOT DOESN'T CONTROL ¥ Riot's hash rate > Network hash rate v Cost of electricity % Price of BTC Corporate expenses % Block rewards & # of blocks per year % Price of mine
Slide 37: Bitcoin Halving Overview
BITCOIN “HALVING” OVERVIEW Bitco's fae supoly sched is driven by programmatic changes in the block reward ‘every 10.000 blocks roughly every four year) the block reward i reduced by 50% (Le, halving Following each halving, Btcoin miners recoive half the Bitcoin block per block mined. HISTORICAL BITC
Slide 38: Glossary
GLOSSARY BITCOIN (BTC) a type of cigital currency in which ‘ecord of transactions is maintained and new unt of ‘Currency are generated by the computational solution ‘of methematiea! problems, and which operates Independently ofocortal bone aunt of Steoin [BLOCKCHAIN a system In which record of trans