CASTLE ROCK, Colo.,
June 10, 2020 /PRNewswire/
-- Riot Blockchain, Inc. (NASDAQ: RIOT) ("Riot" or the
"Company"), one of the few Nasdaq-listed cryptocurrency mining
companies in the United States, announces continued
improvements and optimization of its bitcoin ("BTC") production,
via the relocation of its 4,000 Bitmain S17 Pro miners from
Oklahoma City to Coinmint, LLC's
("Coinmint") facility, in Massena,
New York. The Company also announces corporate updates and
its BTC production update for the month of May 2020.
BTC Mining Optimization
As previously disclosed on April 14,
2020, Riot entered into a colocation agreement with
Coinmint. The transition to Coinmint is an important part of Riot's
focus to improve its production cost efficiencies and mining
output. The Coinmint energy pricing and hosting arrangement is
expected to significantly decrease the direct cost of BTC
production as compared to Riot's Oklahoma
City operation, while also appreciably increasing mining
uptime. Additionally, Riot now has a clear path forward to continue
expanding its total hashing capacity.
During May and early June 2020,
Riot successfully relocated 4,000 Bitmain S17 Pros to Massena, New York. To date, 75% of the miners
have been deployed, and all miners are expected to be fully
deployed by June 15, 2020. The
Oklahoma facility lease expires on
June 30, 2020 at which time the
Company plans to have exited the Oklahoma facility.
Ashton Soniat, CEO of Coinmint,
stated, "As the largest capacity cryptocurrency mining facility in
North America, Coinmint is
designed to meet the needs of mining partners of Riot's caliber. We
have worked hard to provide the best mining services at the lowest
cost to institutional BTC miners. This partnership allows our
clients to further expand upon our facilities and leverage
Coinmint's low-cost base to enhance overall margins for all
parties."
Corporate Updates and May 2020
Production Update
- On May 11, 2020 the BTC halving
("halving") occurred, which is an event that halves the rate at
which new BTC are awarded (created). The halving decreased each
block reward from 12.5 BTC to 6.25 BTC. The halving affects both
the production and future supply of BTC. Historically, the value of
BTC post-halving, over time has increased. However, the potential
long-term effects of the halving are unknown.
- In consideration of low operating efficiencies due to the
halving, all of the Company's remaining prior generation Bitmain S9
miners were taken off-line and have since been sold.
- Riot now operates approximately 4,000 Bitmain S17 Pros with an
aggregate hashing power capacity of 248 Petahash per second
("PH/s").
- On June 3, 2020, Riot announced a
129% increase to its future aggregate operating hash rate to 567
PH/s via the purchase of an additional 3,040 Bitmain S19 Pros. Riot
expects staged delivery over four to five months, commencing with
the first 1,000 miners arriving in July. Once the additional 3,040
Bitmain S19 Pro miners have been received and deployed, Riot
estimates that its fleet of 7,040 next generation miners will
produce an aggregate hashing power capacity of approximately 567
PH/s, representing a 129% increase over the Company's current hash
rate.
- These recent miner purchases were funded using available
working capital. Riot continues to maintain no long-term debt.
- During May 2020, the Company
produced 71 newly mined BTC with its approximately 4,000 Bitmain
S17 Pros. Compared to the previous month, the Company's BTC
production was affected by the halving event on May 11, 2020 as well as downtime required to
transport Riot's mining fleet to Coinmint's more efficient mining
facility in Massena, New
York.
Strategic Opportunities: Riot engaged XMS Capital
Partners in early 2020 to assist the Company in evaluating its
strategic growth opportunities. XMS introduced Riot to Coinmint and
continues to advise the Company on potential strategic
opportunities and transactions in bitcoin mining related
operations.
About Coinmint, LLC
Coinmint operates a digital
currency data center in a former Alcoa Aluminum smelter in
Massena, New York. Its 435MW
transformer capacity at its Massena complex, is three times larger than
any other known operating digital currency data center in
North America. The facility has
been operational since May 2018.
Given the abundance of hydroelectric and wind generation in the
area, the experience of its management team in wholesale
electricity markets, and the large capacity, Coinmint has a
material electrical economic advantage. For more information, visit
www.coinmint.one.
About Riot Blockchain
Riot Blockchain (NASDAQ: RIOT)
focuses on cryptocurrency mining of bitcoin. The Company is
expanding and upgrading its mining operations by securing the most
energy efficient miners currently available. Riot also holds
certain non-controlling investments in blockchain technology
companies. Riot is headquartered in Castle Rock, Colorado, and the Company's
primary mining facility was recently relocated to upstate
New York, under a colocation
agreement with Coinmint. 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.