Riot Platforms, Inc. · NASDAQ:RIOT
Riot Platforms — Investor Presentation (December 2023)
27 slides from Riot Platforms's investor presentation, Dec 6, 2023
Slide 1: Riot Platforms Corporate Presentation
Riot Platforms (NASDAQ: RIOT) Corporate Presentation December 6, 2023 NASDAQ: RIOT
Slide 2: Forward Looking Statements
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
Slide 3: Riot Platforms is the Leading Bitcoin-Driven Infrastructure Platform
Riot Platforms (NASDAQ: RIOT) is the Leading Bitcoin-Driven Infrastructure Platform 1 Significant scale of Total revenue1: 98,694 miners deployed / 4,996 Bitcoin mined1 / operations $202 million 10.9 EH/s hash rate ~18.3 Bitcoin deployed2 mined/day 2 YTD Direct cost to YTD Bitcoin Mining YTD Cost of
Slide 4: Best-in-Class Management Team Driving Value Creation
Best-in-Class Management Team Driving Value Creation 1 Strong operational benefits from vertically-integrated strategy 2 Leading hash rate deployment and growth 3 Unique power strategy in Texas drives low power costs Industry-leading financial strength, with a clear path 4 to grow to 38.1 EH/s Techn
Slide 5: Strong Operational Benefits from Vertically-Integrated Strategy
1 Strong Operational Benefits from Vertically-Integrated Strategy… Rockdale Facility Corsicana Facility ESS Metron ▪ Largest Bitcoin mining data center in North ▪ Second large-scale development located in ▪ Critical provider of Riot’s infrastructure America1 with 700 MW of total capacity in Corsica
Slide 6: Driving Positive Financial and Operational Benefits
1 … Driving Positive Financial and Operational Benefits Strong operational benefits… …driving positive financial performance 1 Enhanced profitability Industrial-scale miner fleet “plugged-in” at Miner deployments an industry-leading, low-cost of power 2 Greater balance sheet flexibility Controlled i
Slide 7: MicroBT Miner Order Secures Future ASIC Miner Purchase Supply and Pricing
2 MicroBT Miner Order Secures Future ASIC Miner Purchase Supply and Pricing Historical ASIC & BTC Price History 1 ▪ Riot began testing MicroBT miners in Q4 of 2022 $140 25 to 28 J/TH Under 25 J/TH BTC Price $70,000 ▪ Consistently demonstrates high uptime $120 $60,000 ▪ Purpose built for immersion-co
Slide 8: Recent MicroBT Order Significantly Upgrades Riot's Mining Fleet
2 Recent MicroBT Order Significantly Upgrades Riot’s Mining Fleet MicroBT Combined Order Summary Model Quantity Hash Rate Efficiency J/TH M56S+ 8,320 220 TH/s 24.0 M56S++ 22,684 230 TH/s 22.0 M66 20,778 250 TH/s 19.9 M66S 48,058 280 TH/s 18.5 Total / Weighted Average 99,840 26 EH/s 20.0 Fleet Effici
Slide 9: MicroBT Miner Order Provides Clear Path to 100 EH/s in Self Mining
2 MicroBT Miner Order Provides Clear Path to 100 EH/s in Self Mining Rockdale Corsicana Corsicana Phase 1 Phase 2 Historical Phase 1 Phase 2 100+ EH/s 38.1 EH/s Assuming full 33.4 EH/s exercise of additional 28.8 EH/s MicroBT purchase 24.4 EH/s options 20.1 EH/s 16.1 EH/s 12.4 EH/s 9.7 EH/s 3.1 EH/s
Slide 10: Proportion of Renewable Energy Production in ERCOT Continues to Increase
3 Proportion of Renewable Energy Production in ERCOT Continues to Increase 3 #1 in renewable energy production1,2 in the US with wind and solar accounting for 48% of total energy generation capacity in the ERCOT grid by 2024 ERCOT energy generation fuel mix 0.2% 0.4% 0.2% 3% ▪ By the end of 2024, ~4
Slide 11: Fixed Power Block Gives Riot Ability to Benefit from High Power Costs
3 Fixed Power Block Gives Riot Ability to Benefit from High Power Costs when Bitcoin Mining may be Less Economical LZ South Average Settlement Price 1 $/MWh Mining Revenue 2 $210/MWh $190/MWh Average settlement $170/MWh price >$500/MWh $150/MWh $130/MWh Riot’s average cost $110/MWh of power 3 $90/MW
Slide 12: Long-Term Power Contracts Form the Basis of Riot's Power Strategy
3 Long-Term Power Contracts Form the Basis of Riot’s Power Strategy Riot's Power Strategy Employed Through 3 Primary Mechanisms 1 2 3 ERCOT Ancillary ERCOT Manual Curtailment 4 Coincident Peak Services ("4CP") Program ▪ Riot powers down operations ▪ Riot competitively bids to ▪ Riot voluntarily powe
Slide 13: Riot's Power Strategy in Action – Economic Optimization
3 Riot’s Power Strategy in Action – Economic Optimization on June 20, 2023 $5,000.00 100.0% Riot receives $4,500.00 Power and 90.0% Demand $4,000.00 Response Credits4 80.0% $3,500.00 70.0% $3,000.00 60.0% Riot sells power $2,500.00 back when 50.0% power prices Riot mines exceed BTC $2,000.00 BTC at
Slide 14: Industry-Leading Financial Strength, Growth Plans Fully-Funded
4 Industry-Leading Financial Strength, with Growth Plans Through Year- End 2025 Already Fully-Funded and Independent of External Financing $176 million $170 million $399 million 7,358 BTC 2 $290 million Cash balance1 Q3 2023 Actual BTC Net Estimated BTC sales 3 Corsicana Facility Corsicana Facility
Slide 15: Corsicana Facility – Riot's Second Large-Scale Facility
4 Corsicana Facility – Riot's Second Large-Scale Facility [1 GW] G Corsicana Infrastructure Capex Schedule1 $170mm $501mm $147mm $29mm $155mm Corsicana Facility Under Development Capex spent Q4 2023 capex 2024 phase 1 Total phase 2 Total phase as of Q3 2023 estimate capex estimate capex 1 & 2 capex
Slide 16: Corsicana Facility – First Batch of ASIC Miners Online in Q1 2024
4 Corsicana Facility – First Batch of ASIC Miners to go Online in Q1 2024 Q4 2022 Q2 2023 Q2 2024 Groundbreaking Ceremony Q4 2023 Inventory Building Second Batch of Kick-off Ground Works Tanks Commissioning Cut & Fill Miners Online Q2 2023 Q1 2024 Cut & Fill Q4 2023 First Batch of Structural Metal B
Slide 17: Technological Leader in Industrial-Scale Immersion-Cooling Infrastructure Build-Out
5 Technological Leader in Industrial-Scale Immersion-Cooling Infrastructure Build-Out Rockdale Facility Corsicana Facility Benefits of Immersion- Cooling1 Increased heat dissipation – immersion fluids are more thermally conductive than air, increasing heat absorption and moving it quickly away from
Slide 18: Key Track Record of Decision-Making Across Multiple Bitcoin Cycles
6 Key Track Record of Decision-Making Across Multiple Bitcoin Cycles Dec 2023: 1 Dec 2019: Aug-Dec 2020: Mar 2021: Oct 2021: Dec 2021: Purchased Experienced Purchased 4,000 Purchased 30,600 Purchased Purchased Purchased S17 Pro miners S19 Pro / S19j Pro 43,500 S19j 9,000 S19j Pro 30,000 S19XP 66,560
Slide 19: Riot is Strongly Positioned Going into the Halving
6 Riot is Strongly Positioned Going into the "Halving" 1 1 33.4 J/TH 36.0 J/TH 27.7 J/TH 31.4 J/TH 27.8 J/TH Average 25.2 J/TH 25.7 J/TH Network Leading 22.4 J/TH 1 Efficiency of 2 Fleet 32.2 J/TH Efficiency N/A N/A N/A Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 2 $18,123 $19,901
Slide 20: 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 Rendering of Full Development of Corsicana Facility 20
Slide 21: Appendix
Appendix 1OT
Slide 22: Management Team and Board of Directors
Management Team and Board of Directors ✓ Unique, Bitcoin-focused strategic vision Benjamin Yi Jason Les Executive Chairman of the Board Chief Executive Officer; Director ✓ Veteran public company expertise ✓ Supported by industry- leading infrastructure Jason Chung William Jackman Colin Yee Executive
Slide 23: Statement of Operations (Unaudited)
Statement of Operations (Unaudited) Nine Months Ended September 30, 2023 2022 (in $ thousands, except for per share amounts) Revenue: - Bitcoin Mining $ 128,987 $ 126,166 - Data Center Hosting 21,811 27,899 - Engineering 50,995 44,886 - Other Revenue 73 73 Total Revenue $ 201,866 $ 199,024 Costs and
Slide 24: Balance Sheet (Unaudited)
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 Asse
Slide 25: Balance Sheet (Unaudited) (continued)
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 Deferred
Slide 26: Non-GAAP Adjusted EBITDA (Unaudited)
Non-GAAP Adjusted EBITDA (Unaudited) Nine Months Ended September 30, 2023 2022 (in $ thousands, except for per share amounts) Net Income (Loss) $ (128,700) $ (349,416) Interest (Income) Expense (3,331) 9 Income Tax Expense (Benefit) (5,014) (8,839) Depreciation and Amortization 190,071 61,366 EBITDA
Slide 27: Non-GAAP Cost of Revenues (Unaudited)
Non-GAAP Cost of Revenues (Unaudited) Nine Months Ended September 30, 2023 2022 (in $ thousands, except for per share amounts) Bitcoin Mining: Revenue $ 128,987 $ 126,166 Cost of Revenue 69,995 51,766 Power Curtailment Credits allocated to Bitcoin Mining (42,333) (8,924) Cost of Revenue, net of Powe
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