CASTLE ROCK, Colo.,
March 25, 2020 /PRNewswire/
-- Riot Blockchain, Inc. (NASDAQ: RIOT) ("Riot" or
the "Company"), one of the few Nasdaq listed public
cryptocurrency mining companies in the United States, reported
financial results for the year ended December 31, 2019. The financial statements
are available on Riot's website and here.
2019 Recent Operational Highlights
- Invested in 4,000 Bitmain S17 Pro Antminers at the Company's
Oklahoma City mining facility,
which when deployed in early 2020 resulted in an increase in Riot's
fully owned hashing power capacity to approximately 248
Petahash;
- Received notice of the termination of the SEC's investigation
of Riot on January 29, 2020;
- Produced 944 newly minted bitcoins (BTC) during 2019 and
increased bitcoin inventory 206% year-over-year to 514 BTC at
December 31, 2019;
- Established an industry-leading advisory board comprised of
recognized leaders with proven operational and strategic experience
throughout the cryptocurrency space;
- Improved December 31, 2019
working capital to $9.3 million from
a deficit of $(4.3) million as of
December 31, 2018 and decreased total
liabilities to $4.1 million from
$9.4 million during the same period;
and
- Increased total stockholders' equity to $26.2 million at December
31, 2019 compared to $4.5
million balance at December 31,
2018, approximately a $22
million increase over the prior period.
Fiscal Year 2019 Financial Results
Total mining
revenue in 2019 was $6.7 million
compared to $7.7 million in 2018.
Gross profit, which is computed as mining revenues in excess of
cost of revenues (excluding depreciation and amortization), was
$644,000 (9.6% of total mining
revenues), as compared to $1.9
million (24.9% of total mining revenues) in 2018. The
decreases in revenue and gross profit were primarily due to changes
in cryptocurrency prices as well as increases in the difficulty
index associated with solving mining algorithms.
Selling, general, and administrative ("SG&A") expenses in
2019 decreased 56% to $9.2 million
from $20.9 million in 2018. The
decrease in SG&A expenses was primarily due to reductions in
staff, decreases in stock-based compensation expense, consulting
fees, and legal fees, which were slightly offset by increases in
audit and related professional fees.
Net loss for 2019 was $20.3
million, or $(1.02) per share,
compared to net loss of $60.2
million, or $(4.33) per share,
in 2018.
At December 31, 2019, the Company
had $11.3 million in cash and
cryptocurrencies, as compared to $932,000 at December 31,
2018.
2020 Strategic Priorities
As announced in a press
release issued on February 20, 2020,
Riot has concentrated its strategic priorities by focusing on
bitcoin mining and pursuing opportunities more directly related to
bitcoin and bitcoin mining. In line with that mission, the Company
has upgraded its mining facility in Oklahoma City and engaged XMS Capital Partners
to advise on potential strategic opportunities.
In response to the rapidly expanding and evolving effects of
COVID-19, Riot Blockchain is actively monitoring COVID-19
developments, including local, regional and global regulatory and
health updates. Temporary policies have been adopted covering
travel restrictions, remote work solutions where feasible,
etc. The Company is dedicated to the safety and well-being of
its team members and business partners. The Company is reviewing
and developing protocols to navigate and manage its key operations
by evaluating potential future steps and plans to consider
potential implications to its workforce, operations, finance and
liquidity.
About Riot Blockchain
Riot Blockchain (NASDAQ: RIOT)
specializes in cryptocurrency mining. The Company's operational
focus consists of mining bitcoin. Riot also holds non-controlling
investments in blockchain technology companies. Riot is
headquartered in Castle Rock,
Colorado, and the Company's 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.