Riot Platforms, Inc. · NASDAQ:RIOT
Riot Platforms — Riot Blockchain — Investor Presentation (June 2022)
38 slides from Riot Platforms's investor presentation, Jun 17, 2022
Slide 1: Riot Blockchain, Inc.
1OT Riot Blockchain, Inc. NASOAG: RIOT / JUNE 16, 2022
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS ‘users tha preetaentterenothatre cf lorars oki aera hteectnaogurentacurertezectterassumetons Sensor aur prterrance ons rao corns Sch aurea sta hau povsansScten 2A tsar Ak Tei econ ln Sci toe At ech neers i een ey St ‘Ts ears satan yn, but a ot rit ates bout te baat fies nh
Slide 3: Riot's vision: world's leading Bitcoin-driven infrastructure platform
Riot’s vision is to be the world’s leading Bitcoin-driven infrastructure platform
Slide 4: Investment Highlights
INVESTMENT HIGHLIGHTS A wl @ 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- class Bitcoin mini
Slide 5: Riot At-a-Glance
8 1 O T AT-A-GLANCE Tica Symbol on NASOAG RIOT | cuamrensnoeb ans 20 | Share Price $4.65° Total Bitcoin Mined 1405 Shares issued & Outstanding 127.0 MILLION® Total Revenue $79.8 MILLION. ‘Avg. Daily Trading Volume. 10.24 MILLION® Bitcoin Mining Revenue $57.9 MILLION. Cash $113.6 MILLION® Bitcoin Min
Slide 6: Riot: a leader in Bitcoin mining
Riot: a leader in Bitcoin mining
Slide 7: Leading position driven by North America's largest Bitcoin mining facility
Riot’s leading position is driven by North America’s largest Bitcoin mining facility WHINSTONE US 200. ACRES 750. MW. Rockdale, Texas total capacity 2.9¢/kWh 200+ industry-leading ~~employees forming the. power rate al cution team
Slide 8: Gigawatt Expansion
Riot’s leading position is enhanced by its 1 GIGAWATT EXPANSION In April 2022, Riot announced that it initiated a large-scale, 1 gigawatt ("GW") development in Navarro County, TX to expand its Bitcoin mining and hosting capabilities ‘The expansion has begun 1,000 MW =270 ‘ital 400 MW'ofeopsciy Total
Slide 9: A Proven Leader in Execution
A PROVEN LEADER IN EXECUTION 2018 2020 2021 2022+ Riot began mining _Riot movedits entire Acquired Whinstone, Completing Bitcoin at 12 MW mining fleet to 2300 MWBitcoin 400 MW expansion ‘Oklahoma city Coinmint’s Bitcoin ‘mining facility in ‘at Whinstone facility, which it ‘mining hosting Rockdale, T
Slide 10: A Leader in Developed Capacity
A LEADER IN DEVELOPED CAPACITY 600) 571 s z E H $00 3 : H Hy 400
Slide 11: A Leader in Future Capacity
A LEADER IN FUTURE CAPACITY taco) aamcRIEST Soa Snem E SS PF POPPER egg 4 In April 2022, Riot announced its 1 gigawatt expansion into Navarro County, Texas, more than doubling future expected total capacity + The ist phase, a 400 MW build-out, has begun, with mining and hosting eperations expected t
Slide 12: A Leader in Self-Mined Bitcoin Production
A LEADER IN SELF-MINED BITCOIN PRODUCTION $900 | 5,460 5,000 4,000 3000 2,379 000 1826 1798 BTC MINED YTD. 1,560 1,329
Slide 13: A Leader in Hash Rate Deployed
A LEADER IN HASH RATE DEPLOYED 9) 92 HASH RATE DEPLOYED (EH/) i
Slide 14: Robust Hash Rate Growth
ROBUST HASH RATE GROWTH Since 2019, Riot has ‘executed multiple long-term purchase orders with Bitmain, with expected monthly deliveries through Jan 2023 Riot’s aggregate Bitcoin self-mining hash rate capacity estimated to reach: 12.6 EH/s by Jan 2023
Slide 15: A Leader in Cost of Production
A LEADER IN COST OF PRODUCTION QI 2022 average net power cost for Riot self-mining at Whinstone was 2.9¢/kWh RIOT’S POWER STRATEGY INCLUDES: # f # Long-term, low-cost power purchase agreement Participation in grid revenue programs Real-time power procurement POWER COST ($/MWn) 4s| sao sao $42 $42 $3
Slide 16: A Leader in Bitcoin Mining Technology
A LEADER IN BITCOIN MINING TECHNOLOGY + First industral-scale immersion-cooled Bitcoin ‘mining operation + 200 MW of Whinstone ‘and 400 MW of Corsicana |s committed to uitlzing immersion-cooling technology + Immersion-cooling helps ‘machines run at significantly ‘cooler operating temperatures than t
Slide 17: Vertical Integration Is a Superior Long-Term Strategy
VERTICAL INTEGRATION IS A SUPERIOR LONG-TERM STRATEGY More direct control over owned infrastructure drives superior financial returns and greater financial flexibility rc = STRATEGIC BENEFIT 2° snare BENEFIT CONTROL FINANCIAL Mote Control over Business Superior Financial Profile + Miner Deployments
Slide 18: 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 developmen
Slide 19: 2nd Benefit in Action: Superior Financial Profile
2° BENEFIT IN ACTION: SUPERIOR FINANCIAL PROFILE
Slide 20: Board & Management
& BOARD ( f/ i ve te a® a a iseas 7 “@ ~ ” Ba = 9° n%@ sasceme - 7 wy @ MANAGEMENT fa id oy
Slide 21: Relevant Financial Highlights
RELEVANT FINANCIAL HIGHLIGHTS TOTAL REVENUE (4M) BITCOIN MINED EARNINGS PER SHARE. NON-GAAP ADJUSTED EBITDA (SMM) PEE? - te
Slide 22: Riot Blockchain, Inc.
1OT Riot Blockchain, Inc. CONTACT: ir@riotblockchain.com
Slide 23: Appendix
Appendix
Slide 24: Illustrative Mining Build
ILLUSTRATIVE MINING BUILD TOTAL OVER 20226 20236 2024E FIRST 3 YEARS OF LIFESPAN. om. BTC Mined 014 008 0.04 0.26 Direct Costs (NEED $922 $922 $2,767 BTC Mined [MEE 2374 1200 7,468 DARLENE s25,352000 $26,352.00 $26,352000 $79,056,000
Slide 25: Electrical Infrastructure
ELECTRICAL INFRASTRUCTURE THE BACKBONE OF THE THE DIGITAL ECONOMY ASIC Miner wt | ~ 4 i | 6 i—— |] as Medium Voltage Pad Mounted Powe Power Supply #2 fel
Slide 26: Securing Critical Components for Whinstone Buildout
SECURING CRITICAL COMPONENTS FOR 700 MW WHINSTONE BUILDOUT REQUIRED PURCHASED DELIVERED -—_UNITS UNITS UNITS UNITS INSTALLED F High Voltage Transformers: 7 7 7 7 {Af Medium Vottage Transformers 284 204 224 204 Th) Medium Voltage cabies 89,400 89,400 77400 74,200 J) Low vottage cabies 1,662,600 1,662
Slide 27: Acquisition of ESS Metron
ACQUISITION OF ESS METRON si ESSHETRON On December 1, 2021, Riot acquired ESS Metron, a premier provider of highly-engineered electrical equipment solutions, for approximately $50 million® 2 Over sixty years Do-tisks Enhances Riot's Critical component in of experience and procurement of competitive
Slide 28: Key Assumptions
KEY ASSUMPTIONS TO “2° BENEFIT IN ACTION: SUPERIOR FINANCIAL... ‘OVERALL ASSUMPTIONS + Timing: 1-year forecast with starting dato of 71/22 with halvings estimated to occur in May 2024 and May 2028 + Network Starting network hash rate of 215 EH/s increasing by 10 EH/s, excopt for months when a halvin
Slide 29: Non-GAAP Figure Reconciliation
NON-GAAP FIGURE RECONCILIATION INET INCOME (LOSS) 555629 $7925) $0667) Interest income) expense 220 296 es) income tax expense (benefit) 32 254 : Depreciation and amortization 1424s 26,524 4494 EBITON $0406 $8948 $08,255) Now-asi/non-ecuing open exper Stock-based compensation expense 3082 65491 3407
Slide 30: ESG Focus
ESG Focus
Slide 31: Bitcoin Mining: Energy Use
BITCOIN MINING: ENERGY USE 76% of Bitcoln miners utilize renewable energy as a part of their eneray ‘mix, with renewable ‘eneray accounting for -40% of overall ‘energy mix Global Energy Production Total Unused Energy Bitcoin miners, are incentivized to minimize their power costs and seek out under-u
Slide 32: 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 the ‘energy sources in are limited or ‘can be alleviated intermittent demand the world; however, delaye
Slide 33: Bitcoin
Bitcoin 101
Slide 34: What Is Bitcoin?
WHAT IS BITCOIN? Dominant cryptocurrency with a US $400 billion global market capitalization” Decentralized - it is not + controlled by any government, ‘entity, oF person (as compared to fiat currencies) ‘Sound money, with a supply - of only 21 million coins coded to its supply schedule ‘The data st
Slide 35: Bitcoin Mining: The Process
BITCOIN MINING: THE PROCESS Bitcoin transactions are pooled together ina "block" Currently, the reward is 6.25 BTC per block solved, Repeatedly guessing inputs into an algorithm until the desired output is observed a A &% ‘Once a block is formed, miners ‘compete to solve it, which is difficult to do
Slide 36: Bitcoin Mining: Profitability Drivers
BITCOIN MINING: PROFITABILITY DRIVERS Annual Mining Profitability = [rcrens) >) = (Ct) (rc!) +($38)]-[(rae)- Cons) WHAT RIOT CONTROLS WHAT RIOT DOESN'T CONTROL v Riot's hash rate > Network hash rate v Cost of electricity > Price of BTC V Corporate expenses X Block rewards & # of blocks per year > Pr
Slide 37: Bitcoin Halving Overview
BITCOIN “HALVING” OVERVIEW Bitcoin's fixed supply schedule is driven by programmatic changes inthe block reward: every 210.000 backs (roushly every four years) the block reward is reduced By 50% (i.e, “halving") Following each having, Bitcoin miners receive half tho Sitcoln Block per block mined HIS
Slide 38: Glossary
GLOSSARY {BITCOIN (BTC) a type of digital currency in which a record of traneactions is maintained and new units of Currency are generated by the computational solution ‘of mathematical problems, and whieh operates Independently of central Bonk: 9 unit of Biteoin [BLOCKCHAIN a system in which a reco