Riot Blockchain Boosts Self-Mining Hash Rate Capacity

Castle Rock, CO, Jan. 06, 2022 — Riot Blockchain, Inc. (NASDAQ: RIOT), an industry leader in Bitcoin mining and hosting, is now providing a further increase in estimated self-mining hash rate capacity for 2022.

It has also updated the status of miner shipments and deployment. There are updates on the 400-megawatt infrastructure expansion at the Company’s Whinstone US, Inc., facility in Rockdale, Texas.

“Riot is purpose-built to excel in Bitcoin mining,” says Jason Les, CEO of Riot Blockchain.

“As a result of the Company’s vertically-integrated strategy, Riot enters 2022 with a uniquely de-risked expansion plan, as the major components to succeed at an industrial-scale have been internalized. In addition to reducing execution risk, Riot’s vertically-integrated strategy highlights the significant operational and financial benefits of its investments in engineering and technology, which is further demonstrated by the deployment of immersion-cooling technology at a significant industrial scale. In 2022, Riot plans to continue focusing on operational execution, which management believes will continue to highlight the Company’s vertically-integrated business strategy and its position as a low-cost producer of Bitcoin.”

Production Updates

• In December 2021, Riot produced 425 BTC, an increase of approximately 334%, as compared to the December 2020 production of 98 BTC.
• In Q4 2021, Riot produced 1,355 BTC, increasing approximately 349%, as compared to Q4 2020 production of 302 BTC.
• In 2021, Riot produced 3,812 BTC, increasing approximately 269%, as compared to 2020 production of 1,033.
• As of December 31, 2021, Riot held approximately 4,889 BTC, all produced by the Company’s self-mining operations.
• Riot currently has a deployed fleet of approximately 29,593 miners, with a hash rate capacity of 3.1 exahash per second (“EH/s”).

Riot intends to continue providing monthly operational updates and unaudited production results for the foreseeable future or until otherwise disclosed. These updates are intended to keep shareholders informed of the Company’s progress regarding the execution of the previously announced growth in Riot’s hash rate and to keep investors apprised of the Company’s development of Bitcoin mining infrastructure critical to de-risking future growth.

Mining Purchase Orders and Increase in Estimated Hash Rate for 2022

In December 2021, Riot executed additional purchase orders totaling $301 million with Bitmain Technologies Limited (“Bitmain”) for an additional 27,000 of their latest miner model S19XP (140 TH/s), with an anticipated delivery and deployment schedule set for July 2022 through December 2022. As a result of these purchase orders, the Company anticipates having approximately 120,150 Antminers in operation, utilizing approximately 370 MW of energy, by Q4 2022.

Also, because of these purchase orders, Riot is increasing its 2022 estimated hash rate capacity by 3.8 EH/s to 12.8 EH/s, representing a 42% increase over the Company’s previously announced estimate of 9.0 EH/s. The increase in the estimated hash rate to 12.8 EH/s does not include any potential incremental hash rate production benefits associated with Riot’s in-process build-out of 200 MW of immersion-cooled infrastructure at the Whinstone Facility.

Miner Deployment and Shipment Updates

In December 2021, the Company received 8,136 S19J-Pros from previous purchase orders, with an additional 2,700 S19J-Pros scheduled to arrive at Riot’s Whinstone Facility in January 2022. While global logistics issues are impacting some miner shipment schedules, the effects to the Company to date have not been material, and Riot remains in close communication with Bitmain and logistics providers working to mitigate delays where possible. Riot expects its hash rate to be approximately 4.1 EH/s when the 8,136 miners received in December 2021 and the 2,700 miners anticipated for delivery in January 2022 are installed at the Whinstone Facility.

The Company began initial deployments of miners in its newly constructed immersion-cooled “Building F” in November 2021, and expects to continue deploying received miners into Building F as capacity is completed.

Riot is also monitoring the continued development of the COVID-19 pandemic. Due to the surge in recent variants, the Company has adjusted its operations to ensure the safety of its employees, which Riot considers its most important asset.

Infrastructure Update

In December 2021, Riot completed Building F, the Company’s first industrial-scale immersion-cooled dedicated building, in addition to receiving most of the structural components required for Buildings D, E, and G.  The construction completion timeline is currently on-time, despite global supply chain shortages and delays.

In December 2021, Riot closed its previously announced strategic acquisition of ESS Metron, one of the world’s leading designers and manufacturers of power distribution equipment. The acquisition of ESS Metron further deepens Riot’s bench strength as a leading vertically-integrated business by securing Riot’s supply chain to critical infrastructure electrical components.

2022 Estimated Hash Rate

By Q4 2022, Riot anticipates a total self-mining hash rate capacity of 12.8 EH/s, assuming full deployment of approximately 120,150 Antminer ASICs, but excluding any potential expected incremental productivity gains from the Company’s utilization of 200 MW of immersion-cooling infrastructure. Approximately 97% of Riot’s self-mining fleet will consist of the latest generation S19 series miner model. Upon full deployment of all currently contracted miners, the Company’s total self-mining fleet will consume approximately 370 MW of energy. In addition to the Company’s self-mining operations, Riot’s Whinstone Facility hosts approximately 200 MW of institutional Bitcoin mining clients.

(GLOBE NEWSWIRE)