Riot Platforms, Inc. · NASDAQ:RIOT
Riot Platforms — Riot Blockchain — Q3 2021 Earnings Presentation
36 slides from Riot Platforms's earnings presentation, Nov 17, 2021
Slide 1: Riot Blockchain, Inc.
1OT Riot Blockchain, Inc. NASDAQ: RIOT / NOV 15, 2021
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS
Slide 3: Riot's mission statement
Riot’s mission is to become one of the most relevant and significant companies supporting the Bitcoin network and greater Bitcoin ecosystem
Slide 4: Investment Highlights
INVESTMENT HIGHLIGHTS A ms & 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-in-class Bitcoin minin
Slide 5: Riot At-A-Glance
rR 1 O T At-A-GLANcE [feavas timee nowt enoeo serr30 aoa | ‘Ticker Symbol NASDAQ. Share Price ‘Shares issued & Outstanding ‘Avg. Daly Trading Volume Net cash [BTC Held on Balance Sheet curren Riot Hashing Capacity Future Riot Hashing Capacity RIOT $4209" 15,9 MILLION® 12:56 MILLION® 357.9 MILLION 39
Slide 6: Riot: a leader in Bitcoin mining
Riot: a leader in Bitcoin mining
Slide 7: North America's largest Bitcoin mining facility
Riot’s leading position is driven by North America’s largest Bitcoin mining facility WHINSTONE US 7 100 ACRES 750 MW ( Rockdale, Texas total capacity 2.4¢/kWh® 150+ industry-leading employees forming the power rate talented execution team 719
Slide 8: A Proven Leader in Execution
A PROVEN LEADER IN EXECUTION 2018 2020 2021 2021+ Riot began mining _—Riot movedits entire Acquired a 300 Initiated 400 MW Bitcoin at 12 MW ‘mining fest to MW Bitcoin mining expansion, building ‘Oklahoma city Coinmints Bitcoin hosting facility in facility to 700 MW facility, which i ‘mining hosting
Slide 9: A Leader in Developed Capacity
A LEADER IN DEVELOPED CAPACITY BY YEAR-END 2021 C0)
Slide 10: A Leader in Future Capacity
A LEADER IN FUTURE CAPACITY In June 2021, Riot commenced a substantial expansion project at the Whinstone facility to more than double the site's capacity E Four new buildings, totaling approximately 240,000 ft? and adding 400 MW of capacity, + Expansion is anticipated to provide the ‘capacity to ho
Slide 11: A Leader in Self-Mined Bitcoin Production
A LEADER IN SELF-MINED BITCOIN PRODUCTION 3750 3an 2,922 2516 2250 1997 BTC MINED YO
Slide 12: A Leader in Hash Rate Deployed
A LEADER IN HASH RATE DEPLOYED HASH RATE DEPLOYED (EH/=)
Slide 13: Robust Hash Rate Growth
ROBUST HASH RATE GROWTH Since 2019, Riot has executed le long-term purchase orders itmain, with expected monthly & deliveries through 2022 Q4 é Riot’s aggregate Bitcoin self-mining hash rate capacity estimated to reach: 8.6 EH/s by @4 2022 i i
Slide 14: A Leader in Cost of Production
A LEADER IN COST OF PRODUCTION Third quarter average net power cost for Riot self-mining at Whinstone was 2.4¢/kWh RIOT’S POWER STRATEGY INCLUDES: beng-term, low-cost power Purchase agreement Peticipation in grid revenue programs owen cost ‘s/wn g Realtime power as 7 tftp ta
Slide 15: A Leader in Bitcoin Mining Technology
A LEADER IN BITCOIN MINING TECHNOLOGY + First industrial-scale Immersion-cooled Bitcoin mining operation #200 Mw of 400 MW. ‘expansion is committed to.using immersion= cooling technology + Helps machines run at significantly cooler ‘operating temperatures than traditional air- cooling, resulting in
Slide 16: Vertical Integration Is a Superior Long-Term Strategy
VERTICAL INTEGRATION IS A SUPERIOR LONG-TERM STRATEGY More direct control over own infrastructure drives superior financial returns and greater financial flexibility 1 STRATEGIC BENEFIT CONTROL More Control over Business Development Deployment Security Suppliers 2° STRATEGIC BENEFIT FINANCIAL Superi
Slide 17: 1st Benefit in Action: Control
18™ BENEFIT IN ACTION: CONTROL cost RISK Ability to "plug in” miners upon arrival at known cost (do not ‘eed to constantly negotiate with hosting providers) SUPPLIER RISK No reliance on third-party hosting providers, limiting ‘counter-party risk EXECUTION RISK ~ Control over infrastructure ‘developm
Slide 18: 2nd Benefit in Action: Superior Financial Profile
2° BENEFIT IN ACTION: SUPERIOR FINANCIAL PROFILE 0 Verte! integration Mining Prot (© Non vertial integration Mining Prot (© Vora iteration i (© on-vetca!ntoorton IRR MONTHLY MINING PROFIT (SIN MILLIONS) VERTICAL INTEGRATION 15% amon 76 months 518mm NON-VERTICAL INTEGRATION 0% 125 monte 64 montne $40
Slide 19: Management & Board
MANAGEMENT & BOARD o
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Slide 21: Riot Blockchain, Inc.
1OT Riot Blockchain, Inc. CONTACT: in@riotblockchain.com
Slide 22: Appendix
Appendix
Slide 23: Illustrative Mining Build
ILLUSTRATIVE MINING BUILD TOTAL OVER 20226 20236 20242 FIRST 3 YEARS (OF LIFESPAN. 014 008 0.04 026 Direct Costs (NESS $922 $922 $2,767 ercéined (MMERES 2374 1200 7,468 DWAGIEERSEM s2c,352.000 $26352000 $26352000 $79,056,000
Slide 24: Electrical Infrastructure
ELECTRICAL INFRASTRUCTURE THE BACKBONE OF THE THE DIGITAL ECONOMY wit ~~ Ei— fey e-7 ft tf iat —- S_, it Medium Votage Padmount Power Power Supply
Slide 25: Securing Critical Components for Whinstone MW Buildout
SECURING CRITICAL COMPONENTS FOR WHINSTONE 700 MW BUILDOUT REQUIRED PURCHASED DELIVERED —_UNITS. UNITS UNITS UNITS INSTALLED High Voltage Transformers: 7 7 5 5 {AE Medium Voltage Transformers 284 284 284 100 Ti) Mectum vottage cables 99400 69400 © 26,400 -——=39,000 J) tow vottage cables 662,600 662,
Slide 26: Key Assumptions
KEY ASSUMPTIONS TO “2° BENEFIT IN ACTION: SUPERIOR FINANCIAL... OVERALL ASSUMPTIONS “ining: 10a forecast wth stating date of VV 22 wit havings estimates to occur in May 2024 an May 2028 etwore Starting network heh rte of 209 EH nrasing by 10 EN except for manta nen a hang occu, When 2 {elena cori ac
Slide 27: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION nerneonn coe TO iret Caco eee nn tome tmeones z So Surecnton sd eoriaton a rd moron sos ayes ac Rerencorereteceere erst Tocraneed compersten ote oe oo seas ‘eon nd cons : we te ‘lange nao certiv sua oa ont > ce cam ‘hang inte aoa comignntconsrton nn) nt ‘es ‘se Ioaimen
Slide 28: ESG Focus
ESG Focus
Slide 29: Bitcoin Mining: Energy Use
BITCOIN MINING: ENERGY USE 76% of Bitcoin miners utlize renewable energy as @ part oftheir eneray ‘mix, with renewable ‘energy accounting for -40% of overall energy mix” Bitcoin miners are incentivized to minimize their Global Energy Production power costs and seek ‘out under-utilized renewables inf
Slide 30: 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 ‘energy sources in ‘re limited oF ‘can be alleviated the intermittent the world; however, delayed due
Slide 31: Bitcoin
Bitcoin 101
Slide 32: What Is Bitcoin?
WHAT IS BITCOIN? + Dominant cryptocurrency with a US $12 trilion global ‘market capitalization Decentralized - its not ‘controlled by any government, entity, or person (as compared to fiat currencies) ‘Sound money, with a supply ‘of only 21 millon coins coded into its supply schedule The data struct
Slide 33: Bitcoin Mining: The Process
BITCOIN MINING: THE PROCESS Repeatedly guessing inputs into an algorithm until the desired output is observed a A & e¢ ® Bitcoin COncea biockis _Afterit is solved, The new block For solving transactions are formed, miners thetransactions. of verified the puzzle, pooled together compote to. are “veri
Slide 34: Bitcoin Mining Profitability Drivers
BITCOIN MININ PROFITABILITY DRIVERS ‘Annual Mining Profitability = (SEs) Ge) (Cats) Gone) -(88)]- [ee -es) | WHAT RIOT CONTROLS, WHAT RIOT DOESN'T CONTROL Riot's hash rate > Network hash rate v Cost of electricity % Price of BTC Corporate expenses % Block rewards & # of blocks per year % Price of mi
Slide 35: Bitcoin Halving Overview
BITCOIN “HALVING” OVERVIEW Bitcoi's fae supoly schedule is driven by programmatic changes in the block reward: ‘every 710.000 blocks oughly every four years) the block reward i reduced by 50% (Le, halving) Following each halving, Bitcoin miners rcoive half he Bitcoin block per Block mined HISTORICAL
Slide 36: Glossary
GLOSSARY BITCOIN (BTC) a typeof gta currency in whic ‘of transactions maintained and new une o cu ‘Generated by te comautatona soltion of mathematic! Problems, ond which operates indepencenty of central Banca unt of Bein BLOCKCHAIN a systom In which record of transactions ‘made in Btcoin or another