CASTLE ROCK, Colo.,
Nov. 12, 2019 /PRNewswire/
-- Riot Blockchain, Inc. (NASDAQ: RIOT) ("Riot" or the
"Company") announced the filing of its September 30, 2019 Quarterly Report on Form 10-Q,
which can be viewed on the Company's website or at SEC.gov.
Riot today announced financial results for its period ended
September 30, 2019. The Company
posted quarterly revenue of $1.7
million and raised a total of $23.6
million through its at-the-market offering ("ATM") during
the nine months ending September 30,
2019.
Q3 Highlights:
- Generated approximately $1.7
million in revenue on the production of 157.2 bitcoin, and
400.2 litecoin for the quarter. This compares to Q3/18 revenues of
$2.3 million on the production of
319.3 bitcoin, and 1,182.2 litecoin. The industry faced continuing
increases in the bitcoin difficulty index, increasing 61% during
the latest quarter, which negatively affected BTC production and
reported revenues.
- The average price of bitcoin for the latest quarter was
$10,382, compared to $8,297 in Q2/19 and $6,856 in Q3/18.
- Cash and digital currencies as of September 30, 2019 totaled approximately
$18.3 million.
- The Company received gross proceeds from the sale of shares of
its common stock under its ATM of approximately $23.6 million at a weighted average sales price
of $3.10 per share during the nine
months ended September 30, 2019.
- The Company's financial position improved across the three and
nine months ended September 30, 2019,
with the Company reporting working capital of $16.5 million at September
30, 2019 as compared to a working capital deficit of
$(4.3) million at December 31, 2018. Total stockholders' equity
also improved to $28.2 million at
period end, an increase of $23.7
million over the December 31,
2018 balance.
- Gross margin percent, computed as mining revenues in excess of
cost of revenues (exclusive of depreciation and amortization),
improved to 14% from 13% in the three-month periods ended
September 30, 2019 and 2018,
respectively. Gross margin percent was 18% and 35% in the
nine-month periods ended September 30,
2019 and 2018, respectively.
- Reduction in the Company's selling, general, and administrative
expenses ("SG&A Expenses") to $1,762,000 in Q3/19, from $5,970,000 in Q3/18, a 70.5% decrease arising
from ongoing expense reductions. SG&A Expenses reduced to
$7,140,000 from $16,314,000 in the nine-month periods ended
September 30, 2019 and 2018,
respectively.
- Net loss in the three-month periods ended September 30, 2019 and 2018, respectively,
totaled approximately $(1.8) million
and $(6.2) million, or $(0.08) and $(0.46)
/share. Net loss in the nine-month periods ended September 30, 2019 and 2018, respectively,
totaled approximately $(16.6) million
and $(46.6) million, or $(0.93) and $(3.56)
/share.
Recent business update and highlights:
Riot has conducted two in-person meetings with its newly
established Advisory Board over the past ninety days to begin and
advance a dialog covering the Company's bitcoin mining operations,
efficiencies and possible strategic next steps. Riot
previously announced establishment of an Advisory Board comprised
of well-recognized creative leaders with a wealth of operational
and strategic experience from across the blockchain space
including: bitcoin software development, node projects, bitcoin
education, start-up advisory, and venture capital/angel investing.
The Advisory Board has been established to assist the Company in
its strategic mission and enhance shareholder value through the
advisors' industry-leading insights and vast network of innovators
and pacesetters.
The previously disclosed Securities and Exchange Commission
investigation associated with the subpoena received by the Company
in April 2018 is still ongoing, and
the Company has been cooperating with the SEC in that
investigation.
About Riot Blockchain
Riot Blockchain is focused on building, operating, and
supporting blockchain technologies. Its primary operations consist
of cryptocurrency mining, targeted development of a cryptocurrency
exchange, and the identification and support of innovations within
the sector. For more information, visit
http://www.RiotBlockchain.com/.
Investor Notice
Investing in our securities involves a high degree of risk.
Before making an investment decision, you should carefully consider
the risks, uncertainties and forward-looking statements described
under "Risk Factors" in Item 1A of our most recent Form 10-K for
the fiscal year ended December 31,
2018 filed with the Securities and Exchange Commission (the
"SEC") on April 2, 2019, as amended
by Amendment No. 1 on Form 10-K/A on April
23, 2019, as well as those risk factors disclosed in any
periodic reports we file with the SEC. If any of these risks were
to occur, our business, financial condition or results of
operations would likely suffer. In that event, the value of our
securities could decline, and you could lose part or all of your
investment. The risks and uncertainties we describe are not the
only ones facing us.
Additional risks not presently known to us or that we currently
deem immaterial may also impair our business operations. In
addition, our past financial performance may not be a reliable
indicator of future performance, and historical trends should not
be used to anticipate results in the future. See "Safe Harbor"
below.
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.