Riot Platforms, Inc. · NASDAQ:RIOT
Riot Platforms — Riot Blockchain — Investor Presentation (June 2018)
32 slides from Riot Platforms's investor presentation, Jun 21, 2018
Slide 1: Investor Presentation June 2018
IOT RBLOCKCHAIN /* Nasdaq RIOT INVESTOR PRESENTATION June 2018
Slide 2: Disclaimer
This presentation and the information contained herein are confidential and the property of Riot Blockchain Inc. This presentation is intended to introduce you to Riot Blockchain. The information presented is not, and is not intended to be, an offer to sell or the solicitation of an offer to buy any
Slide 3: Riot Blockchain is a NASDAQ listed company focused on blockchain technology
IOT ®BLOCKCHAIN Riot Block Inc. is a NASDAQ listed company focused on blockchain technology. Riot Blockchain intends to gain exposure to the blockchain ecosystem through its mining operations, internally developed businesses, joint ventures, and targeted investments in the sector. Its primary focus
Slide 4: Aims to be part of disruptive technology
Riot Blockchain aims to be part of the disruptive technology that appears poised to disrupt the future of transactions. For those companies using outdated technology, the revolution could become a violent disturbance.
Slide 5: Contents
* Riots Strategy ..2i. Snapshot sal Capital Structure. Strategic Investment: Digital Energy Green Management....2.......0004 Mp ecceccrererery veceevevereece-e- mate aoa -. *
Slide 6: Snapshot and comparable companies
RIOT BLOCKCHAIN•NASDAQ-listed blockchain technology focused company•~$110 million market cap* •NASDAQ:RIOT OVERSTOCK.COM •NASDAQ-listed mixed play company with businesses in online retail along with Blockchain•~$1.1 billion market cap* •NASDAQ:OSTK BITCOIN INVESTMENT TRUST •Listed on the U.S. OTC Bu
Slide 7: Business overview: mining, technology, exchange
Cryptocurrency Mining 8,000 ASIC Miners deployed utilizing ~12MW of energy Blockchain Technology Coinsquare (12.97%) TessPay (52%) Verady Digital Green (100%) Digital Currency Exchange Plans to launch a U.S. Digital Currency Exchange in select states
Slide 8: Investment strategy
Our investment strategy consists of operating one of the largest cryptocurrency mining operations listed in North America; identifying unique projects which decentralize markets; combining real world applications with an active development team, strong fundamentals, and large addressable markets.
Slide 9: Cryptocurrency mining operation
▪Largest cryptocurrency mining operation among publicly-listed companies on the NASDAQ or NYSE ▪Approximately 8,000 ASIC cryptocurrency miners deployed ▪Located in a 107,600 sq. ft facility in Oklahoma with power of 12MW with ability to double energy capacity by the end of 2018 ▪When deployed in ful
Slide 10: Mining supply and exchange demand integration
•Potential integration between the cryptocurrency supply generated from the mining operation matching the demand generated from the planned launch of a U.S. digital currency exchange
Slide 11: RiotX acquisition and licenses
•Acquired Logical Brokerage Corp, now dba RiotX, a registered member of the Commodity Futures Trading Commission and the National Futures Association •RiotX is licensed with FinCEN as a Money Service Business (MSB) •RiotX has received its Money Transmitter License from the state of Florida, where ex
Slide 12: Public market comparables
PUBLIC MARKET COMPARABLES OWNERSHIP ADDITIONAL CRYPTOCURRENC MARKET COMPANY NASDAQ OR | y OPERATIONS IN ee eaiaeiahniss CAPITALIZATION NYSE LISTED ils CRYPTOCURRENC TECHNOLOGY (susp m) oo Y EXCHANGE INVESTMENTS Riot Blockchain v v v v $100 Blockchain MiningLtd (Bitfarms) ag Cryptoglobal $28 DMG Bloc
Slide 13: Strategic investment: Coinsquare
•Riot Blockchain has a strategic investment in Coinsquare (12.97% stake) •Coinsquare is a leading digital currency exchange in Canada •February 2018 financing implies a C$430M valuation (USD $334M)* valuation for Coinsquare
Slide 14: Coinsquare features
State of the Art Security Coinsquare is built using robust security software High-End Website An all-new website recently launched, reducing the cost of user acquisition & improving user acquisition rate Mobile Applications Android & iOS apps have both successfully launched, providing a one-stop sho
Slide 15: Coinsquare leading Canadian exchange
Easy-to-use, secure, cost-efficient, and trustworthy way to buy digital assets. Coinsquare a leading Canadian exchange for digital currencies by trading volume according to CBIX.ca
Slide 16: Strategic investment: TESS
STRATEGIC INVESTMENT: TESS y a —) 95% 3 ahaa TESSPAY ‘Blockehain Company Riot Blockchain owns approximately 52% of TESS Inc. TESS has entered a definitive merger agreement to merge with Cresval Capital Corp Riot Blockchain anticipates receiving 41.5 million shares in the combined entity post Merger
Slide 17: Strategic investment: TESS solution
STRATEGIC INVESTMENT: TESS y a The TESS Solution | Planned Model Customer Prepay Model Customer Financed Model 1OT u
Slide 18: Strategic investment: Verady
•Riot Blockchain made a strategic investment in Verady •Verady provides cryptocurrency accounting and audit technology services through VeraNet, where financial institutions, corporations and individuals can audit, account and report on blockchain assets.
Slide 19: Digital Green Energy Corp
•Riotestablished Digital Green Energy Corp as a wholly owned subsidiary to explore internationalinfrastructure opportunities. •The Company is identifying environmentally friendly projects with large energy capacity and a cost-efficient rate for cryptocurrency mining and data center operations.
Slide 20: Management
Mr. O'Rourke is the Chief Executive Officer and Chairman of the Board of Directors of Riot Blockchain. Since 2011, he has also served as the Managing Member of ATG Capital LLC, an investment fund focused on small and mid-cap growth companies possessing distinct competitive advantages and superior ma
Slide 21: Management
With more than 18 years experience managing critical infrastructure for various high-tech industries, Mr. Robertsen was most recently Chairman and CEO of Bitfury Norway AS. Mr. Robertsen has also held positions as: Head of Critical and DC Facilities Management at Datacom Systems; Regional Facilities
Slide 22: Board of directors
Mr. Mancini will serve as Lead Director and will serve as Chairman of the Audit Committee, as a member of the Nominating and Corporate Governance Committee, and as a member of the Compensation Committee. Mr. Mancini combines his experience as a former Canadian and U.S. senior corporate executive, co
Slide 23: Capital structure (as of June 5, 2018)
1 o rN Ce ase (as of June §, 2018) / a J — ‘ 4 | \ Al Vi I r . , Y ¢ Common Slack Series B Preferred Stock | Restricted Stock Units Outstandin Outstanding and Stock Options Z (As Converted to Common) | *Subject to Vesting 13,620,915 712,700 928,626 Warrants Exercisable Warrants Exercisable at Total
Slide 24: Gateways to blockchains
“ Bir IN a mag Mr USNS We intend to help develop and build gateways to blockchains
Slide 25: Thank you
(2)1IOT NASDAQ: RIOT THANK YOU! John O’Rourke, Chairman and CEO Riot Blockchain Inc. E: John@riotblockchain.com www.riotblockchain.com
Slide 26: Appendix
2)1IOT NASDAQ: RIOT Appendix 26
Slide 27: Blockchain overview
BLOCKCHAIN OVERVIEW A BLOCKCHAINISA CONTINUOUSLY GROWING LIST OF RECORDS (BLOCKS) BLOCKS ARE LINKED AND SECURED USING CRYPTOGRAPHY EACH BLOCK GETS VERIFIED BY DECENTRALIZED CONSENSUS AND IS THEN PERMANENTLY ADDED TO THE BLOCKCHAIN
Slide 28: What is blockchain: how it works
Whatis Blockchain How it Works TRANSACTIONS MINERS BLOCK Transactions Are Miners Create a Block and Broadcast to the Network Include Transactions PROCESS STARTS OVER BLOCK PUZZLE HOW THE BITCOIN — BLOCKCHAIN WORKS Miner Solves Puzzie And Creates AProot of Work VERIFICATION PROOF OF WORK an PROOFOFWO
Slide 29: Blockchain applications
BLOCKCHAIN APPLICATIONS
Slide 30: Cryptocurrency overview
CRYPTOCURRENCY OVERVIEW WORLDWIDE NO CENTRAL DIRECT TRANSACTIONS TRANSACTIONS CRYPTOCURRENCY + REPOSITORY OR SINGLE PEER-TO-PEER VERIFIED BY NETWORK RECORDED INA DIGITAL PAYMENT SYSTEM ADMINISTRATOR TRANSACTIONS NODES BLOCKCHAIN (LEDGER)
Slide 31: What is Bitcoin
Bitcoin is a new cryptocurrency that was created at the end of 2008 by an unknown person using the alias Satoshi Nakamoto. Bitcoin is a consensus network that enables a new payment system using digital assets. It is the first decentralized peer-to-peer payment network that is powered by its users wi
Slide 32: Cryptocurrency causes for growth
@IOT, CRYPTOCURRENCY CAUSES FOR GROWTH $290B MARKET CAP As at 4/24/18 httpsilcoinmarketcap.com WORLDWIDE DEMAND FOR CRYTPO CURRENCY LARGE NEW FUNDS ENTERING THE MARKET RISING ADOPTION / GOING MAINSTREAM