Riot Platforms, Inc. · NASDAQ:RIOT
Riot Platforms — Riot Blockchain — Investor Presentation (March 2022)
37 slides from Riot Platforms's investor presentation, Mar 18, 2022
Slide 1: Riot Blockchain, Inc.
1OT Riot Blockchain, Inc. NASDAG: RIOT / MAR 17, 2022
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS
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 JZ. & 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 min
Slide 5: Riot At-a-Glance
rR 1 O T At-a-Glance [wexrenee ore aeet ‘Ticker Symbol on NASDAG. ‘hate Price ‘hates Issued & Outstanding ‘Ava. Dally Trading Volume Net cash [BTC Hold on Balance Sheat ‘Current Riot Hashing Capacity Future Rlot Hashing Capacity sieas 1173 MILLION? 9.88 MILLION? $512.5 MILLION” s7eserc® 39EH/s rR EH
Slide 6: Riot: a leader in Bitcoin mining
Riot: a leader in Bitcoin mining
Slide 7: 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 2.7¢/kWh® == = st industry-leading employees forming the power rate ‘talented execution team’ See ST epee me nated eee mc tn aa
Slide 8: A Proven Leader in Execution
A PROVEN LEADER IN EXECUTION 2018 2020 2021 2021+ Riot began mining Riot moved ts entire Acquired a 300 Initiated 400 MW. Bitcoin at 12 MW. mining fleet to MW Bitcoin mining expansion, building ‘Oklahoma city, ‘Coinmint’s Bitcoin hosting fecity in facility to 700 MW facity, which it ‘mining hosting
Slide 9: A Leader in Developed Capacity
A LEADER IN DEVELOPED CAPACITY m9 116 109 106 105 DEVELOPED CAPACITY (MW)
Slide 10: A Leader in Future Capacity
A LEADER IN FUTURE CAPACITY oa 20a 2022 2022 2022 2022 Gf Ge “ar “Ge “GF “BE @ 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 buildings totaling approximately 2
Slide 11: A Leader in Self-Mined Bitcoin Production
A LEADER IN SELF-MINED BITCOIN PRODUCTION ‘BTC MINED IN 2021 5.000 4000 5,769 3,812 3,452 3197 2,538 200 1866 1765,
Slide 12: A Leader in Hash Rate Deployed
A LEADER IN HASH RATE DEPLOYED HASH RATE DEPLOYED CEW/=) 90 82 14
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 Jan 2023, Riot’s aggregate Bitcoin self-mining hash rate capacity estimated to reach: 12.8 EH/s by Jan 2023 (© CURRENT HASH RATE @ EXPANDING HAS 5
Slide 14: A Leader in Cost of Production
A LEADER IN COST OF PRODUCTION H2 2021 average net power cost for Riot self-mining at Whinstone was 2.7¢/kWh RIOT’S POWER STRATEGY INCLUDES: beng-term, low-cost power Purchase agreement Peticipation in grid revenue programs owen cost ‘s/wn g Realtime power procurement 2 3 & ttit ptf
Slide 15: A Leader in Bitcoin Mining Technology
t A LEADER IN é | BITCOIN MINING TECHNOL! a iY A Immersion-cooled Bitcoin mining operation + 200 MW of 400 MW + = ‘expansion is committed — to.using immersion- bpintehe wesianahs PROLONGED INCREASED: + Helps machines run MACHINE LIFE HASH RATE 2 significantly cooler WITH REDUCED OF MAGHINE« operatin
Slide 16: Vertical Integration Is a Superior Long-Term Strategy
VERTICAL INTEGRATION IS A SUPERIOR LONG-TERM STRATEGY 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 2° STRATEGIC BENEFIT FINANCIAL Superi
Slide 17: 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 evelopm
Slide 18: 2nd Benefit in Action: Superior Financial Profile
2"° BENEFIT IN ACTION: SUPERIOR FINANCIAL PROFILE © Verte integration Mining Prot (© Non vertical integration Mining Prot €© Vora iteration IR (© Non-vetca! integration IRR MONTHLY MINING PROFIT (SIN MILLIONS) Eater ar Povback gcse tumor Unto VERTICAL INTEGRATION 15% amon 76 months 518mm [NON-VERTIC
Slide 19: Management & Board
MANAGEMENT & BOARD
Slide 20: Relevant Financial Highlights
RELEVANT FINANCIAL HIGHLIGHTS
Slide 21: Riot Blockchain, Inc.
1OT Riot Blockchain, Inc. CONTACT: in@riotblockchaincom
Slide 22: Appendix
Appendix
Slide 23: 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 24: Electrical Infrastructure
ELECTRICAL INFRASTRUCTURE THE BACKBONE OF THE THE DIGITAL ECONOMY ond ~~ Ei— os a4 1 ¢ t 4 ia —- S_, aa Medium Votge Padmount Power Power Supply
Slide 25: Securing Critical Components for Whinstone Buildout
SECURING CRITICAL COMPONENTS FOR 700 MW WHINSTONE BUILDOUT REQUIRED PURCHASED DELIVERED -—_UNITS. UNITS UNITS UNITS INSTALLED High Voltage Transformers, 7 7 7 7 {ME Medium Voltage Transformers 284 284 284 192 Ti) Mecium vottage cables 89,400 89,400 77400 7,200 WE) Low vottage cabies 11662600 662,600
Slide 26: Acquisition of ESS Metron
ACQUISITION OF ESS METRON ss ¢, ESSHETRON On December 1, 2021, Riot acquired ESS Metron, a premier provider of highly-engineered electrical equipment solutions, for approximately $50 million” aga “Q) aso Giese a7) ‘Over sity yours Devi Enhances Rots Creal component in Gfowulencoand provement ot comp
Slide 27: Key Assumptions
KEY ASSUMPTIONS TO “2N BENEFIT IN ACTION: SUPERIOR FINANCIAL... OVERALL ASSUMPTIONS “ining: Osea forecast wth stating date of VV 22 wit havings estimates to occur in May 2024 an May 2028 etwore Starting network heh rte of 200 EH nrasing by 10 Es except for manta nen a having occu, When 2 {long cors
Slide 28: Non-GAAP Figure Reconciliation
menor cer cot eae Ted ore Saaae fee bene ceca eet EA 2 enncaton en moran zeit ane moe ee Technerd competence er oncancrecning opting rene: Tceuntoned ce 98 Conger vol of Sratv srt oa fou pied ‘Change in far vale of contingent consderation sin) ost 975 Resid onn)onsalefexchang of tongrterm nvestmant
Slide 29: ESG Focus
ESG Focus
Slide 30: 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 overal energy mix” Bitcoin miners are incentivized to minimize theit Global Energy Production power costs and seck ‘out under-utilized renewables infr
Slide 31: 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 ‘energy sources in ‘re limited oF ‘can be alleviated the intermittent the world; however, delayed due
Slide 32: Bitcoin
Bitcoin 101
Slide 33: What Is Bitcoin?
WHAT IS BITCOIN? + Dominant cryptocurrency with a US $735 billon 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 milion coins coded into its supply schedul The data struct
Slide 34: 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 block is Afterit is solved, The new block For solving transactions are formed, miners thetransactions. of verified the puzzle, pooled together compete to. are “veri
Slide 35: Bitcoin Mining: Profitability Drivers
BITCOIN MINING: PROFITABILITY DRIVERS Annual Mining Profitability = (sce) +e) (z=): roee)-( 33] (se). WHAT RIOT CONTROLS, WHAT RIOT DOESN'T CONTROL ¥ Riot's hash rate > Network hash rate v Cost of electricity % Price of BTC Vv Corporate expenses % Block rewards & # of blocks per year % Price of mine
Slide 36: Bitcoin Halving Overview
BITCOIN “HALVING” OVERVIEW Bitco's fae supoly schedule is driven by programmatic changes in the block reward: ‘every 710.000 blocks roughly every four year) the block reward i reduced by 50% (Le, halving) Following each halving, Bitcoin miners recaive haf he Bitcoln Block por block mined. HISTORICAL
Slide 37: Glossary
GLOSSARY BITCOIN (BTC) a typeof eta currency in which a record ‘of transactions maintained and new uns of curency are ‘Generated by te computations solstion of mathematic! Problems, ond which operates indepencenty of central Banke aunitof Bein BLOCKCHAIN a systom In which record of transactions ‘mad