Riot Platforms, Inc. · NASDAQ:RIOT
Riot Platforms — Merger or Acquisition (July 2024)
15 slides from Riot Platforms's merger presentation, Jul 23, 2024
Slide 1: Riot Platforms Acquisition of Block Mining
Riot Platforms Acquisition of Block Mining Expanding Riot’s footprint and building on Block Mining’s momentum July 23, 2024 NASDAQ: RIOT
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 (the “PSLRA”), which reflect our management’s opinions, expectations, beliefs, and assumptions regarding future events as of the t
Slide 3: Expanding with a Low-Cost Kentucky Operator
Expanding with a Low-Cost Kentucky Operator Transaction includes two operating data centers in addition to a strong pipeline of development opportunities in Kentucky Site 1: Commerce Drive Combined Site Potential § 35 MW wholly-owned data center in Paducah, KY Self-Mining Total Power § Can expand to
Slide 4: Establishing an Additional Growth Arm with Block Mining
Establishing an Additional Growth Arm with Block Mining Transaction immediately adds to Riot’s existing self-mining hash rate and provides a pipeline for expansion in a new, mining-friendly jurisdiction § Adds current identified pipeline that could bring operations in Kentucky to over 300 MW 1 Immed
Slide 5: Immediate Hash rate Growth + Development Pipeline
1 Immediate Hash rate Growth + Development Pipeline Current identified pipeline that could bring operations in Kentucky to over 300 MW across three sites Self-Mining Power Capacity Growth Power Capacity at Close(3) Commerce(1) Blue Steel Coleman(1) 150MW greenfield build at Coleman estimated 23MW fo
Slide 6: Immediate Hash rate Growth + Development Pipeline (cont’d)
1 Immediate Hash rate Growth + Development Pipeline (cont’d) Block Mining will accelerate Riot’s growth and bolster its path to reaching 100 EH/s of self-mining Rockdale Rockdale Expansion Corsicana KY 2024 Expansion (1) KY Future Expansion(2) Additional Growth 100.0 EH/s Historical 75.3 EH/s 56.6 E
Slide 7: Riot Grows Nationally and Diversifies its Business
2 Riot Grows Nationally and Diversifies its Business Block Mining provides an operational footprint and an exciting pipeline outside of Texas Pro Forma Capacity(1) (MW) at Close(2) Rockdale 67% Corsicana 28% Commerce Drive Blue Steel 3% 2% 5% Pro Forma Capacity (MW) by YE2025(3) 44% Rockdale Strengt
Slide 8: Expands Riot’s Strategic Relationship with Power
3 Expands Riot’s Strategic Relationship with Power Acquired sites participate in flexible demand response programs that help provide stability to local power markets while optimizing cost of power § Riot will partner with Voltus for service and execution of its energy strategy by participating in va
Slide 9: Riot is Acquiring a Strong Operator
4 Riot is Acquiring a Strong Operator History of strong operating performance complements the existing Riot operations team Low-Cost Operator Capital Efficient Developer Pro Forma Cost to Mine Bitcoin(1) Capex Per MW Buildout Cost ($/MW) $23,034 $22,917 $302K / MW $210K / MW $21,580 $80K / MW (2) (3
Slide 10: Riot is Acquiring a Strong Operator
4 Riot is Acquiring a Strong Operator Brings additional talent in-house with experienced management team that brings connections to the local community Michael Stoltzner § Michael is the co-founder and a major shareholder of Block Mining § Previously, he co-founded proprietary trading firm Futrex Tr
Slide 11: Transaction Overview
Transaction Overview Transaction § Riot has acquired 100% ownership of Block Mining Consideration § Up to $125 million on a cash-free, debt-free, Bitcoin-free basis, subject to customary working capital adjustments § Upfront consideration equal to $92.5 million consisting of $18.5 million in cash an
Slide 12: Appendix
Appendix 1OT 12
Slide 13: Existing Hosting Business
Existing Hosting Business Riot plans to wind-down the acquired hosting business and focus on self-mining § At close, ~18 MW of capacity is still being used to host 3rd parties Hosting Capacity Expiry 18.1 § 8 MW of contracts are subject to change of control (“CoC”) Contracts with CoC Provisions prov
Slide 14: Growth Plans Fully-Funded Through Year-End 2025
Growth Plans Fully-Funded Through Year-End 2025 $13 $45 million million $143 million $148 million $19 million $95 million $250 9,334 million BTC(2) $639 million cash & marketable securities(1) Q2 2024 Estimated Cost to mine (4) Rockdale Corsicana Corsicana Corsicana BMI Kentucky 2024 Kentucky Bitcoi
Slide 15: Block Mining Historical Financial Summary
Block Mining Historical Financial Summary (1) (in $ thousands, except for per share amounts) FY 2022 FY 2023 Q1 2024 Revenue Revenue - mining $25,192 $18,512 $6,357 Revenue - hosting 6,066 9,175 2,134 Sale of mining equipment 38,432 948 - Other Revenue - - 59 Total Revenue 69,691 28,635 8,549 Bitcoi