Riot Platforms, Inc. · NASDAQ:RIOT
Riot Platforms — Q3 2023 Earnings Presentation
25 slides from Riot Platforms's earnings presentation, Nov 8, 2023
Slide 1: Q3 2023 Quarterly Update
Q3 2023 Quarterly Update November 7 , 2023 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 98,694 miners deployed / 10.9 EH/s hash rate deployed2 Significant scale of operations Total revenue1 : $52 million Low-cost producer 1 2 YTD Direct cost to produce 1 BTC3 : $5,537/BTC YTD Bitcoin Mining gross margin
Slide 4: Q3 2023 Financial and Operational Results
Q3 2023 Financial and Operational Results 4
Slide 5: Riot Platforms Q3 2023 Snapshot
Riot Platforms Q3 2023 Snapshot 5 Q3 2023 Notes Ending hash rate deployed1 10.9 EH/s ▪ 95% increase year-over-year Bitcoin produced 1,106 BTC ▪ 6% increase year-over-year Bitcoin sold 1,040 BTC ▪ $29.7 million in proceeds received (avg. price of $28,530 per BTC) Bitcoin held 7,327 BTC ▪ $197.6 milli
Slide 6: New All-Time Records in Miners Deployed and Hash Rate Capacity
6 Ending miners deployed(# of miners) Ending hash rate deployed (EH/s) Bitcoin produced (# of BTC) 4 Bitcoin held (# of BTC) 5.6 10.9 Q3 2022 Q3 2023 +95% 6,766 7,327 Q3 2022 Q3 2023 55,728 98,694 Q3 2022 Q3 2023 +77% 1,042 1,106 617 1,757 Q3 2022 Q3 2023 +73% +8% 1. Excludes 14,250 miners that are
Slide 7: Bitcoin Mining results
5.6 EH/s 9.7 EH/s 10.5 EH/s 10.7 EH/s 10.9 EH/s Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 $22.1 $30.7 $48.0 $49.7 $31.2 61% 39% 58% 70% 122% 0% 20% 40% 60% 80% 100% 120% 140% Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Revenue ($ million) Gross margin (%) 7 ▪ $49.6MM in power credits, of which $31.2MM hav
Slide 8: Data Center Hosting – Legacy Contracts Continue to be Addressed
$8.4 $9.0 $9.0 $7.7 $5.1 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 $1.1 $(6.4) $(15.5) $(9.8) $(2.7) 13% (71%) (171%) (127%) (52%) Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Gross profit ($ million) Gross margin (%) 8 Data Center Hosting – Legacy Contracts Continue to be Addressed ▪ Decrease in Q3 2023 h
Slide 9: Engineering – Strong Data Center Demand Driving Margin Expansion
$2.0 $3.5 $0.6 $1.1 $2.3 13% 17% 4% 6% 15% Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Gross profit ($ million) Gross margin (%) $15.8 $20.5 $16.1 $19.3 $15.5 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 9 Engineering – Strong Data Center Demand Driving Margin Expansion +29% -21% 20% ▪ 15% gross margin for Q
Slide 10: Power Strategy Execution in Q3 2023
Power Strategy Execution in Q3 2023 10
Slide 11: Fixed Power Block Gives Riot Ability to Benefit from High Power Costs
-$10/MWh $10/MWh $30/MWh $50/MWh $70/MWh $90/MWh $110/MWh $130/MWh $150/MWh $170/MWh $190/MWh $210/MWh January-23 February-23 March-23 April-23 May-23 June-23 July-23 August-23 LZ South Average Settlement Price $/MWh Mining Revenue 11 Fixed Power Block Gives Riot Ability to Benefit from High Power C
Slide 12: Long-Term Power Contracts Form the Basis of Riot's Power Strategy
12 Long-Term Power Contracts Form the Basis of Riot’s Power Strategy Riot's Power Strategy Employed Through 3 Primary Mechanisms ▪ Riot powers down operations and returns power back to the utility when market prices are higher than Bitcoin mining revenues ▪ Riot receives power credits for difference
Slide 13: Power Strategy Drives Significant Reductions in Effective Power Costs
$36.6 $161.4 $81.9 $26.5 ($117.5) ($13.8) ($150.00) ($100.00) ($50.00) $0.00 $50.00 $100.00 $150.00 $200.00 July August September LZ South Riot Self-Mining Power Cost Utilization of Power Strategy Drives Significant Reductions in Effective Power Costs to Riot 13 ▪ Riot’s unique power strategy consis
Slide 14: Growth Plans
Growth Plans Qiort
Slide 15: Corsicana Facility – Riot's Second Large-Scale Facility
Capex spent as of Q3 2023 Q4 2023 capex estimate 2024 capex estimate Total phase 1 capex G 15 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 infrastructu
Slide 16: Corsicana Facility – Planned Phase Timeline
16 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 17: Industry-Leading Financial Strength, with Growth Plans Funded
Q3 2023 Estimated BTC sales Corsicana Facility 400 MW build-out Corsicana miner purchase 17 1. As of September 30, 2023. 2. Assumes $34,000 BTC price increasing at a 2% monthly escalator and global network hash rate of 430 EH/s in 2023 (October to December) and 460 EH/s in 2024 (January to December)
Slide 18: Strong Visibility on Growth Plan through 2025
18 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 miners, representing approximately 16.1 EH/s in total. Currently assumes a deployment schedule of 16,640 miners in Q4’24, 16,640 m
Slide 19: 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 19
Slide 20: Appendix
Appendix 20
Slide 21: Statement of Operations (Unaudited)
21 Statement of Operations (Unaudited) 2023 2022 (in $ thousands, except for per share amounts) Revenue: - Bitcoin Mining $ 31,222 $ 22,070 - Data Center Hosting 5,108 8,371 - Engineering 15,536 15,824 - Other Revenue 25 25 Total Revenue $ 51,891 $ 46,290 Costs and Expenses: Cost of Revenue: - Bitco
Slide 22: Balance Sheet (Unaudited)
22 Balance Sheet (Unaudited) As of September 30, As of December 31, 2023 2022 (in $ thousands, except for per share amounts) Assets: Current Assets: Cash and Cash Equivalents $ 290,107 $ 230,328 Accounts Receivable, net 12,683 26,932 Contract Assets 22,513 19,743 Prepaid Expenses and Other Current A
Slide 23: Balance Sheet (Unaudited) (continued)
23 Balance Sheet (Unaudited) (continued) As of September 30, As of December 31, 2023 2022 (in $ thousands, except for per share amounts) Liabilities and Stockholders' Equity: Current Liabilities: Accounts Payable $ 8,898 $ 18,445 Contract Liabilities 5,787 8,446 Accrued Expenses 25,200 65,464 Deferr
Slide 24: Non-GAAP Adjusted EBITDA (Unaudited)
24 Non-GAAP Adjusted EBITDA (Unaudited) * Indicates Non-GAAP measure. We use Adjusted EBITDA to eliminate the effects of certain non-cash and/or non-recurring items, that do not reflect our ongoing strategic business operations. Adjusted EBITDA includes impairment of Bitcoin charges. Adjusted EBITDA
Slide 25: Non-GAAP Cost of Revenues (Unaudited)
25 Non-GAAP Cost of Revenues (Unaudited) * Indicates Non-GAAP measure. We use these Non-GAAP measures to evaluate the performance of our core business operations, Bitcoin Mining and Data Center Hosting, after including the impact of our power management strategy. They are provided in addition to, an