Riot Platforms, Inc. · NASDAQ:RIOT
Riot Platforms — Riot Blockchain — Investor Presentation (December 2021)
37 slides from Riot Platforms's investor presentation, Dec 9, 2021
Slide 1: Riot Blockchain, Inc.
lIOT Riot Blockchain, Inc. NASDAQ: RIOT / DEC 8, 2021
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Statemontsin this presetatonthat are not historical facts are orwar ooking statements that reiet managements current expectations. assumptions, Sn estimate of fate pertormonce end eeanome coctons Such statements be mace I relence onthe safe ator brvaons of action 27A ot th
Slide 3: Riot's mission
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 J A trailblazing Serves asa 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 mining inve
Slide 5: Riot At-A-Glance
8 | O T At-A-GLANCE [zeaves rinse Hons exoeD ser 30.200 | Ticker Symbol NASDAQ Share Price ‘Shares Issued & Outstanding ‘Avg. Daily Trading Volume Net Cash BTC Held on Balance Sheet Current Riot Hashing Capacity Future Riot Hashing Capacity {eer sy 0 ey man ef 2/4 af a 9 a V(r ml ed O20 9 Mara? ocel
Slide 6: Riot: a leader in Bitcoin mining
Riot: a leader in Bitcoin mining
Slide 7: Whinstone US
WHINSTONE US ————— ———— 100 ACRES 750 mw. ite” Rockdale, Texas total capacity 2.4¢/kWh” 150+ industry-leading employees forming the power rate talented execution team
Slide 8: A Proven Leader in Execution
A PROVEN LEADER IN EXECUTION ‘Oklahoma City ity facility, which it ‘mining hosting Rockdale, Texas of Bitcoin mining ‘operated until in Massena, infrastructure ‘mid-2020
Slide 9: A Leader in Developed Capacity
A LEADER IN DEVELOPED CAPACITY DEVELOPED CAPACITY BY YEAR-END 2021 (MW) ee ee ee ao ‘Samra 1) Comenry mente 8 re ne) aren SR mere Premera 8 Rope & Eh prem ran CeO 9/37
Slide 10: A Leader in Future Capacity
A LEADER IN FUTURE CAPACITY caw) 800 700 600 500 400 2021 2021 2022 2022 2022 2022 3 Qs “al a2 a3 ‘as @ HOSTING @ RIOT SELF-MINING (@ AVAILABLE CAPACITY In June 2021, Riot commenced a substantial expansion project at the Whinstone facility to more than double the site’s capacity + Four new buildings
Slide 11: A Leader in Self-Mined Bitcoin Production
A LEADER IN SELF-MINED BITCOIN PRODUCTION 4,000 3,000 2,000 BTC MINED YTD 1000 ee ae Si sn Re WN pe eo I ee SA ATR I we
Slide 12: A Leader in Hash Rate Deployed
A LEADER IN HASH RATE DEPLOYED 35 30 HASH RATE DEPLOYED (EH/s)
Slide 13: Robust Hash Rate Growth
ROBUST HASH RATE GROWTH Since 2019, Riot has executed multiple long-term purchase orders with Bitmain, 8 with expected monthly ‘ deliveries through 2022 Q4 Riot's aggregate Bitcoin self-mining hash rate capacity estimated to reach: 9 EH/s by Q4 2022 (@ CURRENT HASH RATE @ EXPANDING HASH RATE ws
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: 7 Long-term, low-cost power Purchase agreement & Participation in grid revenue programs POWER COST ($/MWh) g Realtime povier procurement ZZ & ra s & Le &
Slide 15: A Leader in Bitcoin Mining Technology
A LEADER IN BITCOIN MINING TECHNO + 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 incr
Slide 16: Vertical Integration Is a Superior Long-Term Strategy
VERTICAL INTEGRATION IS A SUPERIOR LONG-TERM STRATEGY cr L 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 20 STRATEGIC BENEFIT FI
Slide 17: 1st Benefit in Action: Control
1’ 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 ~ development timelines to match ‘deplo
Slide 18: 2nd Benefit in Action: Superior Financial Profile
2" BENEFIT IN ACTION: SUPERIOR FINANCIAL PROFILE . $0 2 fg eg s20 © Vertical integration Mining Proft z €@ Non- Vertical Integration Mining Profit te = @ Vertical integration IRR_ 22 so © Non-Vertcal Integration IRR ze g $ 2 $0 ‘Time Until Cumulative Profit RC (eves Machines Turn Off ‘Until Turn Off
Slide 19: Management & Board
MANAGEMENT & BOARD an J ister -“@-@®-@ ‘Supported by team of 150+ employees with expertise in construction, deployment, procurement, etc. 19/37
Slide 20: Relevant Financial Highlights
RELEVANT FINANCIAL HIGHLIGHTS REVENUE ($MM) BITCOIN MINED EARNINGS PER SHARE ‘ADJUSTED EBITDA ($MM) —_ ul 20/37
Slide 21: Riot Blockchain, Inc. Contact
lIOT Riot Blockchain, Inc. CONTACT: ir@riotblockchain.com
Slide 22: Appendix
Appendix
Slide 23: Illustrative Mining Build
ILLUSTRATIVE MINING BUILD TOTAL OVER 2022E 2023E 2024E FIRST 3 YEARS OF LIFESPAN a BTC Mined 014 0.08 0.04 0.26 Treat aig Direct Costs $922 $922 $922 $2,767 3,894 2,374 1,200 7,468 = Ea a Ud Anca eatosey $26,352,000 $26,352,000 $26,352,000 _ $79,056,000 Seep aero te eae eae ee re ermieems a7
Slide 24: Electrical Infrastructure
ELECTRICAL INFRASTRUCTURE THE BACKBONE OF THE THE DIGITAL ECONOMY ASIC Miner feral Hig ary t BITCOIN = > ines Power Power Supply Distribution Unit
Slide 25: Securing Critical Components for Whinstone MW Buildout
SECURING CRITICAL COMPONENTS FOR WHINSTONE 700 MW BUILDOUT BS High Voltage Transformers Medium Voltage Transformers Medium Voltage Cables Low Voltage Cables Medium Voltage Switchgear Low Voltage Panel Boards Power Distribution Unit REQUIRED PURCHASED _ DELIVERED UNITS UNITS UNITS: UNITS INSTALLED 7
Slide 26: Acquisition of ESS Metron
ACQUISITION OF ESS METRON Bin ESSMETRON On December 1, 2021, Riot acquired ESS Metron, a premier provider of highly-engineered electrical equipment solutions, for approximately $50 million® 2 " @ to third-partie: technology ESS Metron Is a key provider of many of the critical Bitcoin mining componen
Slide 27: Key Assumptions to 2nd Benefit in Action
KEY ASSUMPTIONS TO “2N° BENEFIT IN ACTION: SUPERIOR FINANCIAL... ‘OVERALL ASSUMPTIONS + Timing: 10-year forecast with starting date of 1/1/22 with halvings estimated to occur in May 2024 and May 2028 + Network: Starting network hash rate of 200 EH/ increasing by 10 EH/s, except for months when a hal
Slide 28: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION INET INCOME (LOSS) ‘$7,530 ‘519,537 Interest income) expense a5) «60 Income tax expense - 3730 Depreciation and amortization 2846 5738 EBITDA $10,201 $28,725 ‘Non-cash/non-recurring operating expense: ‘Stock-based compensation expense 936 969 ‘Acquistion related costs
Slide 29: ESG Focus
ESG Focus
Slide 30: Bitcoin Mining: Energy Use
BITCOIN MINING: ENERGY USE 76% of Bitcoin miners utilize renewable energy as a part of their eneray mix, with renewable energy accounting for -40% of overall Total Unused Global Energy energy mix® Production Bitcoin miners Energy are incentivized to minimize their power costs and seek out under-util
Slide 31: Bitcoin Mining: Enabling the Energy Transition
BITCOIN MINING: ENABLING THE ENERGY TRANSITION Solar and wind are the least expensive energy sources in the world; however, they are also an intermittent power supply Many new solar and wind deployments are limited or delayed due to grid congestion caused by their intermittent ature Grid congestion
Slide 32: Bitcoin
Bitcoin 101
Slide 33: What Is Bitcoin?
WHAT IS BITCOIN? + Dominant cryptocurrency with a US $1 trillion global market capitalization” Decentralized - it is not controlled by any government, ‘entity, or person (as compared to fiat currencies) ‘Sound money, with a supply - of only 21 million coins coded to its supply schedule ‘The data str
Slide 34: Bitcoin Mining: The Process
BITCOIN MINING: THE PROCESS Repeatedly guessing inputs into an algorithm until the desired output is observed @ A7 & e¢ ®@® Bitcoin Once ablockis _Afterit is solved, The new block For solving transactions are formed, miners __the transactions of verified the puzzle, Pooled together compete to are “v
Slide 35: Bitcoin Mining: Profitability Drivers
BITCOIN MINING: PROFITABILITY DRIVERS Annual Mining Profitability = (<=) ee)- (Cen) - (oe) (8). [uae - (es) WHAT RIOT CONTROLS WHAT RIOT DOESN'T CONTROL Vv Riot’s hash rate > Network hash rate ¥ Cost of electricity % Price of BTC v Corporate expenses Block rewards & # of blocks per year > Price of m
Slide 36: Bitcoin Halving Overview
BITCOIN “HALVING” OVERVIEW Bitcoin’s fixed supply schedule is driven by programmatic changes in the block reward; ‘every 210,000 blocks (roughly every four years) the block reward Is reduced by 50% (ie. "halving’). Following each halving, Bitcoin miners receive half the Bitcoin block per block mined
Slide 37: Glossary
GLOSSARY BITCOIN (TC) a type of digital currency in which a record Of transactions is maintained and new units of currency are ‘generated by the computational solution of mathematical ‘problems, and which operates independently of a central bank; a unit of Bitcoin BLOCKCHAIN a system in which a reco
Riot Blockchain — Investor Presentation (December 2021) on 6ix