Riot Platforms, Inc. · NASDAQ:RIOT
Riot Platforms — Q4 2024 Earnings Presentation
38 slides from Riot Platforms's earnings presentation, Feb 24, 2025
Slide 1: Riot Platforms 2024 Update
NASDAQ: RIOT Riot Platforms (NASDAQ: RIOT) 2024 Update February 24, 2025
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: Table of Contents
Table of Contents I.I 2024 Milestones & Key Accomplishments II. II 2024 Financial Review III. III Growing Engineering Division: E4A Solutions Acquisition IV Capital Strategy: BTC Treasury IV. V Maximizing Value of 2.0 GW of Capacity V. VI. VI Key Focus Areas for 2025 3
Slide 4: 2024 Milestones & Key Accomplishments
I 2024 Milestones & Key Accomplishments Corsicana Phase 1 ▪ In April 2024, Riot energized 400 MW substation and began self-mining operations at the Deployment Corsicana Facility ▪ Successfully ramped up to 14.1 EH/s in deployed hash rate by December 2024 ▪ Riot paused the sale of Bitcoin earned from
Slide 5: 2024 Financial Review
FY2024 II 2023Financial FinancialReview Update 700 MW Rockdale Facility – Rockdale, Texas 5
Slide 6: Riot Platforms FY 2024 Snapshot
Riot Platforms FY 2024 Snapshot Bitcoin produced 4,828 BTC ▪ Equates to an average annual production of 13.2 BTC per day Bitcoin held 1 17,722 BTC ▪ 141% increase year-over-year; value of $1,654MM Bitcoin held per 1M fully 44.3 BTC / 1M shares ▪ 39% increase year-over-year diluted shares 2 Ending ha
Slide 7: 154% Increase in Hash Rate and 141% Increase in Bitcoin Held
Riot Platforms – 154% Increase in Hash Rate Year-over-Year and 141% increase in Bitcoin Held on Balance Sheet Year-over-Year Hash Rate (EH/s) BTC per 1M Fully Diluted Shares (# of BTC) +39% 44.3 ▪ FY 2024 Self-Mining deployed hash 630 31.5 +67% rate up 154% over FY 2023, +154% 31.8 outpacing network
Slide 8: Increase in Company Wide Revenue, Gross Profit, EBITDA, and Net Income
Riot Platforms – Increase in Company Wide Revenue, Gross Profit & Margin, EBITDA, and Net Income Year-over-Year $376.7 $160 m $147.6 80% +34% $17.2 $38.5 $140 m 70% $280.7 Revenue $120 m 60% $27.4 Gross 47% $97.6 ($ million) $100 m 43% 50% $64.3 Profit2 39% 39% / $80 m 35% 40% ($ million) Growth $14
Slide 9: Bitcoin Mining Segment – Increasing Revenue and Gross Margins
Bitcoin Mining Segment – Increasing Revenue and Gross Margins Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2023 FY 2024 Riot Revenue Breakdown – FY 2024 3 Avg. Hash Price $92 $67 $45 $54 $75 $65 ($/PH/s/Day) 5% Avg. Network 10% Bitcoin Mining 568 EH/s 604 EH/s 625 EH/s 728 EH/s 378 EH/s 630 EH/s Hash Rate1 En
Slide 10: FY 2024 Cost to Mine Increase Drivers
FY 2024 Cost to Mine Increase Driven by Network Hash Rate Growth, Bitcoin ‘Halving’, and Higher Average Cost of Power in Winter Months Cost to Mine per BTC Hash Cost $25.8 $27.4 $10.2 $28.3 ($/PH/s/Day) ▪ Total Self-Mining costs net of power credits for Q4 2024 of $63.7MM compared to Q3 2024 costs o
Slide 11: Growing Engineering Division: E4A Solutions Acquisition
FYGrowing III EngineeringUpdate 2023 Financial Division: E4A Solutions Acquisition Manufacturing Engineering Services Division 11
Slide 12: M&A Transaction Adds Engineering Services to Vertical Integration Model
M&A Transaction Adds Engineering Services to Riot’s Vertical Integration Model Riot acquired E4A Solutions (“E4A”), a leading electronic engineering services company, in December 2024 for $52 Million in cash of consideration at closing 1 E4A Has Ability To Service: E4A Financial Highlights E4A Selec
Slide 13: E4A Expected to Create Meaningful Synergies
E4A Expected to Create Meaningful Synergies Across Riot’s Businesses Combining E4A’s unique solutions and expertise with both Riot’s Bitcoin mining business and ESS Metron’s precision engineering & manufacturing should result in new revenue opportunities, a range of cost savings, and improved effici
Slide 14: Engineering Division – The Path to $100MM Run Rate Revenue
Engineering Division – The Path to $100MM Run Rate Revenue Riot Revenue Breakdown – FY Q42024 20231 ~$100.0 5% 10% Bitcoin Mining $64.3 Engineering Other Revenue $38.5 85% $9.6 $12.6 $11.6 $4.7 Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2023 FY 2024 FY 2025E ▪ Seeing robust demand in data center development
Slide 15: Capital Strategy: BTC Treasury
IV Capital Strategy: BTC Treasury 15
Slide 16: Significant Value Creation from BTC Treasury Strategy
Significant Value Creation from Riot’s BTC Treasury Strategy Riot completely paused the sale of all BTC earned from self-mining operations beginning in January 2024; This capital management strategy has led to significant value creation over the course of FY 2024 Illustrative Value Creation Since Ad
Slide 17: Utilizing Convertible Notes to Increase BTC Holdings
Utilizing Convertible Notes in a Conservative Manner to Increase BTC Holdings Transaction Overview % Debt to BTC ▪ On December 16, 2024, Riot announced that it completed its offering of its 0.75% convertible senior notes due 2030 ▪ The aggregate principal amount of the 2030 notes sold in the offerin
Slide 18: 2025 Key Capital Expenditures
2025 Key Capital Expenditures Use of Funds Amount Description Corsicana Phase II ▪ Includes capex for a 600MW substation development and other long-lead $65 million Capital Expenditures items ▪ Includes $14MM for 30MW expansion at Commerce and $9mm for 30MW Kentucky $23 million expansion at Blue Ste
Slide 19: Hash Rate Growth Forecast
Hash Rate Growth Forecast Rockdale Rockdale Expansion Corsicana Kentucky Kentucky Future Expansion Historical ▪ Riot's hash rate is 38.4 EH/s 38.4 EH/s forecasted to grow 22% in 37.0 EH/s 34.5 EH/s 2025 31.5 EH/s 28.2 EH/s ▪ Expected to keep pace with global hash rate 22.0 EH/s ▪ Maintain ~4% share
Slide 20: Maximizing Value of 2.0 GW of Power Capacity
V Maximizing Value of 2.0 GW of Power Capacity 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 20
Slide 21: AI & HPC Related Cash Flows are Valued at a Premium
AI & HPC Related Cash Flows are Being Valued at a Premium EV / 2025E EBITDA 1 AI/HPC Focus Peers2 BTC Mining Focus Peers ▪ Investors perceive cash flows tied to AI/HPC related counterparties to be less volatile 16.0x than BTC mining 15.3x cash flows 13.6x 12.1x Average: 11.9x ▪ While valuation 11.0x
Slide 22: Massive Demand Growth for AI and Cloud Requiring HPC Infrastructure
There is massive demand growth for AI and Cloud, requiring more HPC infrastructure US Cloud & AI Data Center Demand Market Opportunity1 (GW) “We are planning to spend $80 billion on AI data centers in 2025, primarily to support our partnership with OpenAI and Historical Forecast expand our cloud com
Slide 23: Hyperscalers Face Land & Power Shortages
Hyperscalers face land & power shortages and are increasingly deploying outside of core Tier 1 markets; Riot is well positioned for this demand US data center market supply constraints… …are driving hyperscalers to deploy in increasingly remote markets… Tier 1 DC Emerging market DC market US colocat
Slide 24: Corsicana Site is Ideal for HPC Data Center Deployment
Riot’s Corsicana site is an ideal location for an HPC data center deployment; Secured available power offers a unique value proposition and time-to-market Corsicana benefits from proximity to Tier 1 Dallas data center hub And site fundamentals appear attractive vs. customer needs Power Land Greater
Slide 25: Rockdale Site is Ideal for HPC Data Center Deployment
Riot’s Rockdale site is an ideal location for an HPC data center deployment; Secured available power offers a unique value proposition and time-to-market Rockdale benefits from proximity to Tier 1 Austin data center hub And site fundamentals appear attractive vs. customer needs Dallas Power Land 700
Slide 26: Riot is Aggressively Pursuing the AI/HPC Opportunity
Riot is Aggressively Pursuing the AI/HPC Opportunity Adding Engage Continued Engage 01 Consultants 02 Experience to 03 Financial 04 Infrastructure the Board Advisors Development In January 2025, Riot In February 2025, In February 2025, Riot Riot continues to launches formal Riot announces engages Ev
Slide 27: Key Focus Areas for 2025
© Key Focus Areas for 2025 1OoT 27
Slide 28: Key Focus Areas for 2025
Key Focus Areas for 2025 AI / HPC ▪ Altman Solon feasibility study is expected to be completed in mid-March 2025 Process ▪ Riot is closely working with financial advisors to go to market BTC ▪ Targeting an accretive BTC yield in 2025 through prudent capital strategy and low-cost mining Yield 1 opera
Slide 29: Appendix
Appendix 1OoT 29
Slide 30: 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 with focus on traditional Benjamin Yi Jason Les data center developmen
Slide 31: 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 32: 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. Years Ended December 31, Riot Platforms, Inc.: 2024 2023 2022 Fully Costed Gross Profit
Slide 33: 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 34: Definitions, Terms, and Reconciliations (Unaudited)
Definitions, Terms, and Reconciliations (Unaudited) Gross Profit (Non-GAAP): The Company defines Gross Profit as Fully Costed Gross Profit (as defined below) plus Power curtailment Credits plus Deprecia tion & Amortization expense. Years Ended December 31, 2024 2023 2022 Riot Platforms, Inc.: Fully
Slide 35: 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 36: 2024 Statement of Operations (Unaudited)
2024 Statement of Operations (Unaudited) 36
Slide 37: 2024 Balance Sheet (Unaudited)
2024 Balance Sheet (Unaudited) 37
Slide 38: 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