Riot Platforms, Inc. · NASDAQ:RIOT
Riot Platforms — Riot Blockchain — Investor Presentation (January 2022)
37 slides from Riot Platforms's investor presentation, Jan 18, 2022
Slide 1: Riot Blockchain, Inc.
lIOT Riot Blockchain, Inc. NASDAG: RIOT / JAN 14, 2022
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Statemontsin this presetatonthat are not historical facts are orwar ooking statements that reiet managements current expectations. assumptions, Sn estimate of fate pertormonce end eeanome coctons Such statements be mace I relence onthe safe ator brvaons of action 27A ot th
Slide 3: Riot's mission statement
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 J A trailblazing Serves asa 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 mining inve
Slide 5: Riot At-A-Glance
8 | O T At-A-GLANCE [zeaves rinse Hons exoeD ser 30.200 | Ticker Symbol NASDAQ Share Price ‘Shares Issued & Outstanding ‘Avg. Daily Trading Volume Net Cash BTC Held on Balance Sheet Current Riot Hashing Capacity Future Riot Hashing Capacity RIOT $20.86 115.9 MILLION? 14.9 MILLION? $57.9 MILLION 4,88
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 100 ACRES 750 MW Rockdale, Texas total capacity 2.4¢/kwh® ~=150F industry-leading “employees forming the power rate talented execution team pega ea ce yen rh yi te ce at cn at —
Slide 8: A Proven Leader in Execution
A PROVEN LEADER IN EXECUTION ‘Oklahoma City ity facility, which it ‘mining hosting Rockdale, Texas of Bitcoin mining ‘operated until in Massena, infrastructure ‘mid-2020
Slide 9: A Leader in Developed Capacity
A LEADER IN DEVELOPED CAPACITY DEVELOPED CAPACITY BY YEAR-END 2021 (MW) Gee vier vareme Grane DE ‘Smtr ewwtor 1) Comenry mean 8 re ono) aren 50 mer Premera) Rope 2 prem rae CaO 9/37
Slide 10: A Leader in Future Capacity
A LEADER IN FUTURE CAPACITY caw) 800 700 600 500 400 2021 2021 2022 2022 2022 2022 3 Qs “al a2 as ‘as @ HOSTING @ RIOT SELF-MINING (@ AVAILABLE CAPACITY. In June 2021, Riot commenced a substantial expansion project at the Whinstone facility to more than double the site’s capacity + Four new building
Slide 11: A Leader in Self-Mined Bitcoin Production
A LEADER IN SELF-MINED BITCOIN PRODUCTION 6.000 ) 5,769 5,000 4,000 2,538 2.045 1966 1765 BTC MINED IN 2021, 8 ee een mcr 2 nV re) V2 ne as ce te Ve sim,
Slide 12: A Leader in Hash Rate Deployed
A LEADER IN HASH RATE DEPLOYED 70) 66 60 = 5 50 Fe] & 34 a 50 22 z 20 Fs 20 We 16 1g 5 . : ABO creer YO sores Gas Que 9% cra
Slide 13: 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 2022 Q4 Riot's aggregate Bitcoin self-mining 12.8 EH/s by @4 2022 hash rate capacity estimated to reach: eC EEE PEPEESUSOGGHEPSEIG0 EEE (© CURRENT HASH RATE
Slide 14: A Leader in Cost of Production
A LEADER IN COST OF PRODUCTION Third quarter average net power cost for Riot self-mining at Whinstone was 2.4¢/kWh RIOT’S POWER STRATEGY INCLUDES: 7 Long-term, low-cost power Purchase agreement & Participation in grid revenue programs POWER COST ($/MWh) g Realtime povier procurement ZZ & ra s & Le &
Slide 15: A Leader in Bitcoin Mining Technology
A LEADER IN BITCOIN MINING TECHNO + First industrial-scale immersion-cooled Bitcoin mining operation + 200 MW of 400 MW ‘expansion is committed to using immersion- cooling technology + Helps machines run at significantly cooler ‘operating temperatures than traditional air- cooling, resulting in incr
Slide 16: Vertical Integration Is a Superior Long-Term Strategy
VERTICAL INTEGRATION IS A SUPERIOR LONG-TERM STRATEGY - L More direct control over own infrastructure drives superior financial returns and greater financial flexibility ‘1 STRATEGIC BENEFIT CONTROL More Control over Business + Development * Deployment + Security + Suppliers 20 STRATEGIC BENEFIT FIN
Slide 17: 1st Benefit in Action: Control
1’ 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 ~ development timelines to match ‘deplo
Slide 18: 2nd Benefit in Action: Superior Financial Profile
2° BENEFIT IN ACTION: SUPERIOR FINANCIAL PROFILE _ $80 E go 98 320 {© Vertical Integration Mining Proft Z4 {@ Non-Vertical integration Mining Profit EE @ Vertical integration IRR- sz ge (© Non- Vertical Integration IRR ze é 2 so Time Until Cumulative Prone “tombs Leda Machines Tum Off ‘Until Turn Of
Slide 19: Management & Board
19/37 ion, deployment, procurement, et, ‘Supported by team of 150+ employees with expertise in constr Highly experienced independent board MANAGEMENT & BOARD
Slide 20: Relevant Financial Highlights
RELEVANT FINANCIAL HIGHLIGHTS REVENUE ($MM) BITCOIN MINED EARNINGS PER SHARE ‘ADJUSTED EBITDA ($MM) —— ul
Slide 21: Riot Blockchain, Inc. Contact
lIOT Riot Blockchain, Inc. CONTACT: ir@riotblockchain.com
Slide 22: Appendix
Appendix
Slide 23: Illustrative Mining Build
ILLUSTRATIVE MINING BUILD TOTAL OVER 20226 2023 20248 FIRST 3 YEARS OF LIFESPAN. Sa. BTC Mined 014 008 0.04 0.26 PET Direct Costs MENEZ $922 $922 $2,767 3,694 2374 1200 7,468 = Ea a Ud Aanmte eatery $26,352,000 $26,352,000 $26,352,000 _ $79,056,000 Sygate eerie tm area eae ee eres a7
Slide 24: Electrical Infrastructure
ELECTRICAL INFRASTRUCTURE THE BACKBONE OF THE THE DIGITAL ECONOMY ASIC Miner feral Hig ary t BITCOIN = > ines Power Power Supply Distribution Unit
Slide 25: Securing Critical Components for Whinstone MW Buildout
SECURING CRITICAL COMPONENTS FOR WHINSTONE 700 MW BUILDOUT REQUIRED PURCHASED DELIVERED UNITS UNITS UNITS UNITS INSTALLED High Voltage Transtormers 7 ? ? 7 te Modium Voltago Transformors 284 284 284 160 J) Medium voitage Cables 89,400 89,400 45,400 40,500 J) Low Voltage Cables 1.662,600 662,600 1,35
Slide 26: Acquisition of ESS Metron
ACQUISITION OF ESS METRON Bin ESSMETRON On December 1, 2021, Riot acquired ESS Metron, a premier provider of highly-engineered electrical equipment solutions, for approximately $50 million” 2 sl @ to third-partie: technology ESS Metron Is a key provider of many of the critical Bitcoin mining compone
Slide 27: Key Assumptions to Superior Financial Profile
KEY ASSUMPTIONS TO “2N° BENEFIT IN ACTION: SUPERIOR FINANCIAL... (OVERALL ASSUMPTIONS + Timing: 10-year forecast with starting date of 1/1/22 with halvings estimated to occur in May 2024 and May 2028 + Network: Starting network hash rate of 200 EH/s increasing by 10 EH/s, except for months when a ha
Slide 28: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION INET INCOME (LOSS) ‘$7,530 ‘519,537 Interest income) expense a5) «60 Income tax expense - 3730 Depreciation and amortization 2846 5738 EBITDA $10,201 $28,725 ‘Non-cash/non-recurring operating expense: ‘Stock-based compensation expense 936 969 ‘Acquistion related costs
Slide 29: ESG Focus
ESG Focus
Slide 30: Bitcoin Mining: Energy Use
BITCOIN MINING: ENERGY USE 76% of Bitcoin miners utilize renewable energy as a part of their eneray mix, with renewable energy accounting for -40% of overall Total Unused Global Energy energy mix® Production Bitcoin miners Energy are incentivized to minimize their power costs and seek out under-util
Slide 31: Bitcoin Mining: Enabling the Energy Transition
BITCOIN MINING: ENABLING THE ENERGY TRANSITION Solar and wind are the least expensive ‘energy sources in the world; however, they are also an intermittent power supply Many new solar and wind deployments are limited or delayed due to grid congestion caused by their intermittent nature Grid congestio
Slide 32: Bitcoin
Bitcoin 101
Slide 33: What Is Bitcoin?
WHAT IS BITCOIN? + Dominant cryptocurrency with a US $800 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 million coins coded to its supply schedule ‘The data st
Slide 34: Bitcoin Mining: The Process
BITCOIN MINING: THE PROCESS Repeatedly guessing inputs into an algorithm until the desired output is observed @ A & e¢ ®@ Bitcoin Once ablockis Afterit is solved, The new block For solving transactions are formed, miners __the transactions of verified the puzzle, Pooled together compete to are “veri
Slide 35: Bitcoin Mining: Profitability Drivers
BITCOIN MINING: PROFITABILITY DRIVERS Annual Mining Profitability = (<=) (e)- (Cane) - (oes) (8): [uae - (es) WHAT RIOT CONTROLS WHAT RIOT DOESN'T CONTROL v Riot’s hash rate > Network hash rate v Cost of electricity % Price of BTC v Corporate expenses Block rewards & # of blocks per year > Price of
Slide 36: Bitcoin Halving Overview
BITCOIN “HALVING” OVERVIEW Bitcoin’s fixed supply schedule is driven by programmatic changes in the block reward; ‘every 210,000 blocks (roughly every four years) the block reward Is reduced by 50% (ie. *halving'). Following each halving, Bitcoin miners receive half the Bitcoin block per block mined
Slide 37: Glossary
GLOSSARY BITCOIN (TC) a type of digital currency in which a record Of transactions is maintained and new units of currency are ‘generated by the computational solution of mathematical ‘problems, and which operates independently of a central bank; a unit of Bitcoin BLOCKCHAIN a system in which a reco
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