CASTLE ROCK, Colo., June 3,
2020 /PRNewswire/ -- Riot Blockchain, Inc. (NASDAQ: RIOT)
("Riot" or the "Company"), one of the few Nasdaq-listed
cryptocurrency mining companies in the
United States, has purchased an additional 1,000
next-generation Bitmain S19 Pro (110 TH) Antminers for USD
$2.3 million from BitmainTech PTE.
LTD. ("Bitmain"). This purchase was funded using available working
capital and Riot has no long-term debt.
By Q4 2020, without any further miner purchases, Riot
estimates its aggregate operating hash rate to be approximately 567
petahash per second ("PH/s") consuming 14.2 megawatts of power,
assuming full deployment of the total 7,040 next-generation miners.
This would represent an estimated 467% over Riot's average mining
hash rate as of late 2019 and an efficiency rating of 38.6 joules
per terahash ("J/TH") versus 98 J/TH in 2019. These new generation
miners are expected to operate at nearly 467% of the late 2019 hash
rate, utilizing only approximately a 50% increase in energy
consumption.
Riot anticipates that the additional S19 Pro (110 TH) & S19
(95 TH) 3,040 miners will be deployed as received in the second
half of 2020 and are estimated to represent over 56% of Riot's
total hashing capacity. These miners will be deployed at
Coinmint's Massena facility pursuant to the previously disclosed
hosting arrangement that Riot entered as part of its continuing
efforts to significantly decrease costs of production.
The May 2020 halving, the third in
the network's history, means the mining reward has now been reduced
from 12.5 bitcoins per block to 6.25 block rewards. Bitcoin miners
continue to face pressure from the halving event which occurred in
May 2020, as the event directly
affected mining revenues. Mine operators that failed to upgrade to
more efficient mining rigs and / or secure cheaper power may
succumb to the negative effects of the halving event. In 2020, Riot
reinforced its confidence in bitcoin by focusing on bitcoin mining
and further investing in a full upgrade & expansion of its
mining fleet with the objective of increasing operational
efficiency and performance in the post-halving mining
environment.
By advancing on these goals with the most energy efficient
miners available, Riot has established a more strategically
advantageous position relative to less efficient competition.
Coupled with the unique ability to efficiently access the capital
markets as a Nasdaq-listed company, Riot is positioned to
operate more effectively post-halving and create value for its
shareholders.
About Riot Blockchain
Riot Blockchain (NASDAQ: RIOT)
specializes in cryptocurrency mining with a focus on bitcoin. Riot
also holds non-controlling investments in blockchain technology
companies. Riot is headquartered in Castle Rock, Colorado, and the Company's
primary mining facility is located in Oklahoma City, Oklahoma. For more information,
visit www.RiotBlockchain.com.
Safe Harbor
The information provided in this press
release may include forward-looking statements relating to future
events or the future financial performance of the Company. Because
such statements are subject to risks and uncertainties, actual
results may differ materially from those expressed or implied by
such forward-looking statements. Words such as "anticipates,"
"plans," "expects," "intends," "will," "potential," "hope" and
similar expressions are intended to identify forward-looking
statements. These forward-looking statements are based upon current
expectations of the Company and involve assumptions that may never
materialize or may prove to be incorrect. Actual results and the
timing of events could differ materially from those anticipated in
such forward-looking statements as a result of various risks and
uncertainties. Detailed information regarding factors that may
cause actual results to differ materially from the results
expressed or implied by statements in this press release relating
to the Company may be found in the Company's periodic filings with
the Securities and Exchange Commission, including the factors
described in the sections entitled "Risk Factors," copies of which
may be obtained from the SEC's website at www.sec.gov. The Company
does not undertake any obligation to update forward-looking
statements contained in this press release.
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SOURCE Riot Blockchain, Inc.