Slide 1: Riot Blockchain, Inc. / Sept 27, 2021
Riot Blockchain, Inc. NASDAQ: RIOT / SEPT 27, 2021
Slide 2: Forward-looking statements
Statements in this presentation that are not historical facts are forward - looking statements that reflect management’s current expectations, assumptions and estimates of future performance and economic conditions . Such statements are made in reliance on the safe harbor provisions of Section 27 A
Slide 3: Riot serves as a vehicle for investors seeking exposure to Bitcoin
3 Riot serves as a vehicle for investors seeking exposure to Bitcoin BITCOIN IS A RE - INVENTION OF GLOBAL FINANCE
Slide 4: Institutional views on Bitcoin and digital currencies
"Do I think it's a durable mechanism that ... could take the place of gold to a large extent ?...I do, because it's so much more functional than passing a bar of gold around" "Fidelity has made a long - term commitment to the future of blockchain technology and to making digitally - native assets, s
Slide 5: What is Bitcoin?
5 (1) Coinmarketcap . com as of 9 / 21 / 21 . Dominant cryptocurrency with a US $ 800 billion global market capitalization (1) The strongest, most secure, and most decentralized network of all cryptocurrencies The data structure ( blockchain) serves as the public ledger of all transactions Decentral
Slide 6: The process of mining a Bitcoin
Currently, the reward is 6.25 BTC per block solved, totaling approximately 900 BTC per day network - wide repeatedly guessing inputs into an algorithm until the desired output is observed 6 the process of mining a Bitcoin : Bitcoin transactions are pooled together in a “block” Once a block is formed
Slide 7: Bitcoin mining and energy use
76% of Bitcoin miners utilize renewable energy as a part of their energy mix, with renewable energy accounting for ~40% of overall energy mix (1) Bitcoin miners are incentivized to minimize their power costs and seek out under - utilized renewables infrastructure 68.7% 31.3% Global Energy Production
Slide 8: Riot's mission and key facts
8 Riot’s mission is to become one of the most relevant and significant companies supporting the Bitcoin network and greater Bitcoin ecosystem (1) As of 9 / 21 / 21 ; ( 2 ) as of 9 / 9 / 21 ; ( 3 ) 90 day average trading volume as of 9 / 21 / 21 ; ( 4 ) as of 6 / 30 / 21 ; ( 5 ) as of 9 / 1 / 21 ; (
Slide 9: Riot at a glance Q2 2021
9 BITCOIN MINING MARGIN 70 % 2 , 244 BITCOIN HELD 7 .4 2 AVERAGE BITCOIN MINED DAILY 675 TOTAL BITCOIN MINED $1 3,814 AVG . DIRECT COST PER BITCOIN MINED $ 147 MM CASH ON BALANCE SHEET NET INCOME $ 19 . 3 MM $ 28.8MM EBITDA (1) $ 34 . 3 MM TOTAL REVENUE RIOT AT A GLANCE Q2 2021 (1) “EBITDA” is a non
Slide 10: Profitability drivers in Bitcoin mining
10 PROFITABILITY DRIVERS IN BITCOIN MINING What R iot Does Not Control network hash rate price of BTC block rewards & # of blocks per year price of miners Riot’s hash rate cost of electricity corporate expenses What R iot Controls с ZŝŽƚ഻Ɛ ,ĂƐŚ ZĂƚĞ EĞƚǁŽƌŬ ,ĂƐŚ ZĂƚĞ п WƌŝĐĞ ŽĨ d п ϲ͘Ϯϱ ůŽĐŬ ZĞǁĂƌĚ
Slide 11: Riot's developing operations
11 Riot began mining Bitcoin at 12 MW Oklahoma City facility , which it operated until mid - 2020 201 8 Riot moved its entire mining fleet to Coinmint’s Bitcoin mining hosting facility in Massena, NY, with over 51 MW currently live 2020 Acquired a 300 MW Bitcoin mining hosting facility in Rockdale,
Slide 12: Whinstone facility, Rockdale Texas and transaction structure
12 + 300 MW 750 MW total developed capacity total power capacity 100 acres Rockdale, Texas $ 0.025 cost per kWh 190,000 ft 2 hosting space 24 0,000 ft 2 under construction TRANSACTION STRUCTURE ▪ 11.8 Million shares of RIOT common stock ▪ $80 Million cash consideration
Slide 13: Nasdaq listing provides efficient access to capital
13 Nasdaq listing provides efficient access to capital Significantly de - risked path to capital deployment Industry - leading management team Industry - leading management plus highly - talented execution team with over 100 employees Current mining fleet entirely hosted at Coinmint’s Massena, NY fa
Slide 14: ERCOT's increased renewable penetration
14 ERCOT’S INCREASED RENEWABLE PENETRATION As one of the few deregulated energy markets, ERCOT’s market is driven by competition Source : ERCOT February 2021 Fact Sheet . ▪ 2021 w ind & solar generation has grown to 28.6% of total generating capacity ▪ 25,121 MW of installed wind capacity as of Jan
Slide 15: Industry-leading Bitcoin mining capacity
15 0 225 450 675 900 2020 Q4 2021 Q1 2021 Q2 2021 Q3 2021 Q4 2022 Q1 2022 Q2 2022 Q3 2022 Q4 Riot Self-Mining Hosting Available Capacity Riot Miners at Coinmint (MW) Whinstone Total Capacity - 750 MW INDUSTRY - LEADING BITCOIN MINING CAPACITY Note: Forecast period estimates based on contracted capac
Slide 16: Infrastructure expansion
When completed, this expansion will increase Whinstone’s industry - leading power capacity to 700 MW 16 INFRASTRUCTURE EXPANSION ▪ Four new buildings, totaling approximately 240,000 sq/ft adding a 400 MW of capacity ▪ Expansion is anticipated to provide the capacity to house approximately 112,000 S1
Slide 17: Riot's forecasted hash rate growth schedule
RIOT’S FORECASTED HASH RATE GROWTH SCHEDULE (EH/s) 17 Since 2019, multiple long - term purchase orders with Bitmain; monthly deliveries from purchase orders through Q4 2022 Riot’s aggregate Bitcoin self - mining hash rate capacity estimated to reach: 7.7 EH/s by Q4 2022 4.6 EH/s by Q4 2021 HASH RATE
Slide 18: Riot financial highlights
18 REVENUE ($MM) EARNINGS PER SHARE BITCOIN MINED HASH RATE CAPACITY (EH/s) RIOT FINANCIAL HIGHLIGHTS $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1 2021 Q2 0 100 200 300 400 500 600 700 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1 2021 Q2 0 0.2 0.4 0.6 0.8 1
Slide 19: Investment highlights
19 Riot provides a best - of - class investment opportunity in the Bitcoin mining vertical Clear and significantly de - risked pathway for expansion Management team brings demonstrated track record of success INVESTMENT HIGHLIGHTS Serves as a public vehicle for investors seeking exposure to Bitcoin
Slide 20: Appendix
20 APPENDIX
Slide 21: Riot executive management
21 Jason Les CEO & Board Member Jeff McGonegal C F O Megan Brooks C O O William Jackman General Counsel Jason became Riot’s CEO in February 2021 after serving as an independent board member since November 2017 Has been deeply involved with Bitcoin since 2013, with significant experience in cryptocur
Slide 22: Whinstone founders
WHINSTONE FOUNDERS 22 Chad Harris CEO Lyle Theriot COO Ashton Harris C T O David Schatz VP Operations Chad Harris is the CEO of Whinstone and brings his vast entrepreneur and executive leadership skills to the Riot leadership team As a serial entrepreneur with a track record of building successful a
Slide 23: Riot board of directors
RIOT BOARD OF DIRECTORS 23 Benjamin Yi Executive Chairman Hubert Marleau Lead Independent Director Hannah Cho Independent Director Lance D’Ambrosio Independent Director Recruited to Riot Board of Directors in October 2018, chairing the audit committee Nominated Chairman in November 2020 and Executiv
Slide 24: Texas pilot project
TEXAS PILOT PROJECT Riot continuously explores new mining technology and infrastructure to maintain a leading position within the mining industry In early 2021 , Riot commenced a pilot project utilizing immersion cooling to assess the potential for higher productivity and lower cost mining opportuni
Slide 25: Historical Bitcoin price and halvings
25 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% (i.e., “halving”). Following each halving, Bitcoin miners receive half the Bitcoin block per block mined HISTORICAL BITCOIN PR
Slide 26: Glossary of terms
Bitcoin (BTC) : 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 record of
Slide 27: Contact
contact: ir@riotblockchain.com 27