Riot Platforms, Inc. · NASDAQ:RIOT
Riot Platforms — Riot Blockchain — Investor Presentation (May 2021)
26 slides from Riot Platforms's investor presentation, May 26, 2021
Slide 1: Riot Blockchain, Inc. May 2021
Riot Blockchain, Inc. NASDAQ: RIOT / MAY 2021
Slide 2: Forward-looking statements
The information provided in this presentation may include forward - looking statements within the meaning of the federal securities laws, including as to the effects of the acquisition by Riot Blockchain, Inc . (the “Company”) of Whinstone US, Inc . (“Whinstone”) and the future financial performance
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
"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 5 / 25 / 21 . Dominant cryptocurrency with a US $ 735 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 company 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 5 / 25 / 21 ; ( 2 ) post - closing ; ( 3 ) 90 day average trading volume as of 5 / 25 / 21 ; ( 4 ) as of 3 / 31 / 21 ; ( 5 ) as of 3 / 31 / 21 ; ( 6
Slide 9: Riot at a glance Q1 2021
9 BITCOIN MINING MARGIN 67.5 % 1,56 9 BITCOIN HELD 5.46 AVERAGE BITCOIN MINED DAILY 491 TOTAL BITCOIN MINED $15,250 AVG . DIRECT COST PER BITCOIN MINED $ 241 MM CASH ON BALANCE SHEET NET INCOME $ 7.5 MM $ 10.3 MM ADJUSTED EBITDA $ 23.2 MM TOTAL REVENUE RIOT AT A GLANCE Q1 2021
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 history and current 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 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 60,000 ft 2 under construction TRANSACTION STRUCTURE ▪ $80 Million cash consideration ▪ 11.8 Million shares of RIOT common stock
Slide 13: Leading US Bitcoin mining platform
13 Nasdaq listing provides efficient access to capital Significantly de - risked path to capital deployment Industry - leading management team Industry - leading management plus highly - talented execution team with over 100 employees Current mining fleet entirely hosted at Coinmint’s Massena, NY fa
Slide 14: ERCOT's increased renewable penetration
14 ERCOT’S INCREASED RENEWABLE PENETRATION As one of the few deregulated energy markets, ERCOT’s market is driven by competition Source : ERCOT February 2021 Fact Sheet . ▪ Wind & solar generation has grown to 28.6% of total generating capacity ▪ 25,121 MW of installed wind capacity as of Jan uary 2
Slide 15: Industry-leading Bitcoin mining capacity
15 0 225 450 675 900 2020 Q4 2021 Q1 2021 Q2 2021 Q3 2021 Q4 2022 Q1 2022 Q2 2022 Q3 2022 Q4 Riot Self-Mining Hosting Available Capacity Riot Miners at Coinmint (MW) Whinstone Total Capacity - 750 MW INDUSTRY - LEADING BITCOIN MINING CAPACITY Note: Forecast period estimates based on contracted capac
Slide 16: Riot's forecasted hash rate growth schedule
RIOT’S FORECASTED HASH RATE GROWTH SCHEDULE (EH/s) 16 Since 2019, multiple long - term purchase orders with Bitmain; monthly deliveries from purchase orders through Q4 2022 Riot’s aggregate Bitcoin mining hash rate capacity estimated to reach: 7.7 EH/s by Q4 2022 4.6 EH/s by Q4 2021 0 2 4 6 8 Jan-21
Slide 17: Riot financial highlights
17 REVENUE ($MM) EARNINGS PER SHARE BITCOIN MINED HASH RATE (EH/s) $0 $10 $20 $30 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1 ($0.35) ($0.20) ($0.05) $0.10 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1 RIOT FINANCIAL HIGHLIGHTS 0 200 400 600 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1 0.0 0.5 1.0 1.5 2.0 2020 Q1
Slide 18: Investment highlights
18 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 vehicle for investors seeking exposure to Bitcoin A trail
Slide 19: Appendix
19 APPENDIX
Slide 20: Riot management team
RIOT MANAGEMENT TEAM 20 Jason Les CEO & Board Member 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 cryptocurrency mining and as an engineer studying protocol d
Slide 21: Whinstone founders
WHINSTONE FOUNDERS 21 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 22: Riot board of directors
RIOT BOARD OF DIRECTORS 22 Benjamin Yi Executive Chairman Hubert Marleau Lead Independent Director Hannah Cho Independent Director Lance D’Ambrosio Independent Director Recruited to Riot in October 2018 to chair the audit committee and join a special committee of the Board Nominated Chairman in Nove
Slide 23: Texas pilot project
TEXAS PILOT PROJECT Riot continuously explores new mining technology to maintain a leading position within the mining industry In December 2020, Riot announced a pilot project utilizing up to 8 MW to assess the potential for higher productivity and lower cost mining opportunities Partnership with La
Slide 24: Historical Bitcoin price and halvings
24 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 25: 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 26: Contact: ir@riotblockchain.com
contact: ir@riotblockchain.com 26