Riot Platforms, Inc. · NASDAQ:RIOT
Riot Platforms — Q2 2023 Earnings Presentation
22 slides from Riot Platforms's earnings presentation, Aug 9, 2023
Slide 1: Q2 2023 Quarterly Update
August 9th, 2023 Q2 2023 Quarterly Update NASDAQ: RIOT
Slide 2: Forward-looking statements
Statements in this presentation that are not statements of historical fact are forward-looking statements that reflect management’s current expectations, assumptions, and estimates of future performance and economic conditions, and are not guarantees of future performance or actual results. Such sta
Slide 3: Riot Platforms is the Leading Bitcoin-Driven Infrastructure Platform
Riot Platforms (NASDAQ: RIOT) is the Leading Bitcoin-Driven Infrastructure Platform 95,904 miners deployed / 10.7 EH/s hash rate deployed2 Significant scale of operations Total revenue1 : $77 million Low-cost producer 1 2 Direct cost to produce 1 BTC1,3: $8,389/BTC Bitcoin Mining gross margin1,3: 70
Slide 4: Q2 2023 Financial and Operational Results
Q2 2023 Financial and Operational Results 4
Slide 5: Riot Platforms Q2 2023 Snapshot
Riot Platforms Q2 2023 Snapshot 5 Q2 2023 Notes Ending hash rate deployed1 10.7 EH/s ▪ 143% increase year-over-year Bitcoin produced 1,775 BTC ▪ 27% increase year-over-year Bitcoin sold 1,600 BTC ▪ $44.7 million in proceeds received (avg. price of $27,953 per BTC) Bitcoin held 7,265 BTC ▪ $221.4 mil
Slide 6: Riot Achieved New All-Time Records in Miners Deployed and Hash Rate
6 Ending miners deployed(# of miners) Ending hash rate deployed (EH/s) Bitcoin produced (# of BTC) Bitcoin held (# of BTC) 4.4 10.7 Q2 2022 Q2 2023 +143% 6,653 7,265 Q2 2022 Q2 2023 44,720 95,904 Q2 2022 Q2 2023 +114% 1,395 1,775 Q2 2022 Q2 2023 +27% +9% 1. Excludes 17,040 miners that are offline as
Slide 7: Bitcoin Mining results
7 ▪ $1.7 million increase in mining revenue quarter-over-quarter in Q2 2023, primarily driven by a 32% increase in average Bitcoin price quarter-over-quarter, offset by a 16% decrease in Bitcoin mined quarter-over-quarter due to a 23% increase in average mining difficulty and increased power strateg
Slide 8: Data Center Hosting – Efforts to Resolve Legacy Contracts Continues
8 Data Center Hosting – Efforts to Resolve Legacy Contracts Continues ▪ Decrease in Q2 2023 hosting revenues of $1.3MM driven by fewer hosted customers over the period ▪ Q2 2023 gross loss decreased to $9.8MM versus Q1 2023 gross loss of $15.5MM as the Company continues to address Legacy Contracts ▪
Slide 9: Engineering – Demand from Third-Party Data Center Customers Remains Strong
9 $1.8 $2.0 $3.5 $0.6 $1.1 10% 13% 17% 4% 6% Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Gross profit ($ million) Gross margin (%) $16.9 $15.8 $20.5 $16.1 $19.3 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Engineering – Demand from Third-Party Data Center Customers Remains Strong -7% +29% -21% 20% ▪ $3.2 mil
Slide 10: H2 2023 Growth Plans
<—€ H2 2023 Growth Plans 1OoT 10
Slide 11: Corsicana Facility – Riot's Second Large-Scale Facility
G 11 Corsicana Facility – Riot's Second Large-Scale Facility [1 GW] 1. Phase 1 of the Corsicana Facility development is comprised of the buildout of an initial 400 MW of immersion-cooled data center infrastructure. 1 Corsicana Facility Development Capex spent as of Q2 2023 Q3-Q4 2023 capex estimate
Slide 12: Corsicana Facility – Planned Phase Timeline
12 Corsicana Facility – Planned Phase 1 Timeline Q4 2022 Groundbreaking Ceremony Kick-off Ground Works Q2 2023 Cut & Fill Structural Metal Buildings Delivered on Site Q4 2023 Tanks Commissioning Q4 2023 Building A1 Erection Q2 2023 Inventory Building Cut & Fill Q1 2024 First Batch of Miners Online Q
Slide 13: MicroBT Miner Order Secures Future ASIC Miner Purchase Pricing
13 MicroBT Miner Order Secures Future ASIC Miner Purchase Pricing Source: Hashrate Index by Luxor as of July 28, 2023. ▪ Riot began testing MicroBT miners in Q4 of 2022 ▪ Consistently demonstrates high uptime ▪ Purpose built for immersion-cooling use ▪ Made in the USA ▪ Initial order of 33,280 miner
Slide 14: Industry-Leading Financial Strength, with Growth Plans Fully-Funded
14 1. As of June 30, 2023. 2. Assumes $30,000 BTC price increasing at a 2% monthly escalator, broker analysts global network hash rate of 381 EH/s in 2023 (July to December) and 349 EH/s in 2024 (January to December), majority of monthly BTC production sold (net of fees), self-mining operations from
Slide 15: Strong Visibility on Growth Plan through 2025
15 Strong Visibility on Growth Plan through 2025 Note: ‘Optional MicroBT Order’ represents hash rate increase associated with Riot’s option to order an additional 66,560 mine rs, representing approximately 15.3 EH/s in total. Currently assumes a deployment schedule of 16,640 miners in Q4’24, 16,640
Slide 16: Riot's vision is to be the world's leading Bitcoin-driven infrastructure platform
Riot’s vision is to be the world’s leading Bitcoin-driven infrastructure platform 16
Slide 17: Appendix
Appendix 17
Slide 18: Statement of Operations
2023 2022 (in $ thousands, except for per share amounts) Revenue: - Bitcoin Mining $ 49,742 $ 46,151 - Data Center Hosting 7,661 9,834 - Engineering 19,312 16,938 - Other Revenue 24 24 Total Revenue $ 76,739 $ 72,947 Costs and Expenses: Cost of Revenue: - Bitcoin Mining $ 23,647 $ 17,995 - Data Cent
Slide 19: Balance Sheet (Assets)
Assets: Current Assets: Cash and Cash Equivalents $ 289,176 $ 230,328 Accounts Receivable, net 13,181 26,932 Costs and Estimated Earnings in Excess of Billings 19,063 19,743 Prepaid Expenses and Other Current Assets 20,132 32,661 Bitcoin 140,931 109,420 Future Power Credits, Current Portion 271 24,2
Slide 20: Balance Sheet (Liabilities and Equity)
Liabilities and Stockholder's Equity: Current Liabilities: Accounts Payable $ 12,616 $ 18,445 Billings in Excess of Costs and Estimated Earnings 3,117 8,446 Accrued Expenses 27,307 65,464 Deferred Gain on Acquisition Post-Close Dispute Settlement 26,007 Deferred Revenue, current portion 2,670 2,882
Slide 21: Non-GAAP Adjusted EBITDA Reconciliation
2023 2022 (in $ thousands, except for per share amounts) Net Income (Loss) $ (27,687) $ (353,559) Interest Income (Expense) (4,843) - Income Tax Expense (Benefit) 112 (6,199) Depreciation and Amortization 66,162 20,562 EBITDA $ 33,744 $ (339,196) Non-Cash / Non-Recurring Operating Expenses and Adjus
Slide 22: Segment gross margin reconciliation
2023 2022 (in $ thousands, except for per share amounts) Bitcoin Mining: Revenue $ 49,742 $ 46,151 Cost of Revenues 23,647 17,995 Power Curtailment Credits (8,755) (2,209) Cost of Revenues, net of Power Curtailment Credits 14,892 15,786 Bitcoin Mining Revenue in excess of Cost of Revenues, net of Po