CASTLE ROCK, Colo.,
April 18, 2018 /PRNewswire/ -- Riot
Blockchain, Inc. (NASDAQ: RIOT) (the "Company") announced the
filing of its 2017 Annual Report Form 10-K, which can be viewed on
the Company's website or at SEC.gov.
As previously announced, the Company intends to periodically
release the unaudited yield from its mining activities. With
this first business update covering the period ended Mach 31, 2018
the Company has included its results for the first reporting month
of March 2018.
Highlights from the December 31,
2017 annual financial statements (all amounts as of, or
for the year ended, December 31,
2017):
- Cash, cash equivalents, and cryptocurrencies consisting of
approximately $41.8 million
- Total current liabilities of approximately $1.04 million, total liabilities of approximately
$2.7 million, with no long-term
debt
- Net loss of approximately $19.8
million for 2017, including a $3.5
million loss on discontinued medical product business,
compared to a net loss of approximately $4.3
million for 2016
- Net non-cash items totaled a net charge of approximately
$13.1 million for the year ended
December 31, 2017
- Net cash used in operations decreased to approximately
$4.4 million in 2017 from
approximately $5.5 million in
2016
- 11,622,112 common shares outstanding as of December 31, 2017
Business update and highlights (Unaudited since
December 31, 2017):
- For the month of March 2018, Riot
generated approximately 69 Bitcoins and 44 Bitcoin Cash utilizing a
daily average of 2,547 Bitmain S9 miners deployed at its mining
facility located in Oklahoma
City
- Riot presently converts any Bitcoin Cash mined to Bitcoin on a
regular basis
- Approximately 3,500 Bitmain S9 miners deployed as of
March 31, 2018
- Riot's mining expansion plans remain on track to have
approximately 8,000 Bitmain S9 miners deployed by the end of
May 2018, utilizing approximately
12MW of energy capacity. This would be over 3x the daily
average number of miners deployed during the month of March 2018
- When fully deployed, Riot expects its presently owned hashing
power to be over 110 Petahash, which would rank the Company among
the largest publicly listed cryptocurrency mining operations
- Riot maintains ownership of approximately 12.9% of goNumerical
Ltd (dba "Coinsquare") as of March
31, 2018. Coinsquare received a CAD $430 million valuation in its February 2018 financing
- Riot closed on the acquisition of 92.5% of Logical Brokerage
Corp, a futures introducing broker registered with the Commodity
Futures Trading Commission ("CFTC") and a member of the National
Futures Association ("NFA")
- Riot is actively investigating the potential launch of a
cryptocurrency exchange in select states in the U.S.
- Riot's subsidiary Tess, Inc. entered a definitive agreement to
merge with Cresval Capital Corp. This transaction is expected
to close by the end of the Q2, 2018 and would result in the Company
receiving approximately 41,600,000 shares of TessPay post
merger
- Riot intends to provide regular operational updates on its
mining activities through June 2018
and then re-evaluate the best way to keep shareholders apprised of
this evolving business
Chairman and CEO John O'Rourke
remarked, "We are pleased to note the filing of Riot's 2017 Annual
Report Form 10-K, which includes the initial quarter of the
evolution of the Company into a blockchain technology company.
We continue to focus on the expansion of our cryptocurrency
mining operations and the active investigation of launching a
cryptocurrency exchange in the United
States. We see a strong integration opportunity of supply
and demand between our mining operation and a potential
exchange."
The Company has scheduled its 2017 Annual Meeting of
Shareholders to be held at its Oklahoma
City mining facility at 10:00
a.m. (local time) on May 9,
2018, at 7725 W Reno Ave, Oklahoma
City, OK 73127. Members of the media and analysts are
invited to pre-register to attend the 2017 Annual Meeting by
contacting the Company.
About Riot Blockchain
Riot Blockchain is focused on building, supporting, and
operating Blockchain technologies, primarily through its
cryptocurrency mining operations and other internally developed
businesses, as well as joint ventures, acquisitions, and targeted
investments in the sector. For more information, visit
http://www.RiotBlockchain.com/.
The blockchain is a decentralized and encrypted ledger that
offers a secure, efficient, verifiable and permanent way of storing
records and other information without the need for intermediaries.
These protocols are the backbone of numerous cryptocurrencies,
including Bitcoin, Bitcoin Cash, and Litecoin. Blockchain protocols
have a wide range of use, including processing transactions,
accounting, verification and proof of ownership across a
far-reaching spectrum of applications.
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 Annual Report on
Form 10-K for the fiscal year ended December
31, 2017 filed with the SEC on April
17, 2018 (the "2017 10-K") and in periodic reports we file
with the SEC in the future. 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 in or implied by such
forward-looking statements. Words such as "anticipates," "plans,"
"expects," "intends," "will," "should," "potential," "hope" and
similar expressions are intended to identify forward-looking
statements, but are not the exclusive means of identifying them.
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, including but not limited to our history of
operating losses, the Company's ability to successfully implement
our new business strategy, our rapidly increasing costs, the
Company's ability to raise additional capital, risks relating to
acquisitions, joint ventures and investments in other companies or
technologies, the value of bitcoin and other cryptocurrencies,
which historically has been subject to wide swings, legal
proceedings, governmental and other regulations affecting the
Company's business and cryptocurrencies and changes in such
regulations, growth in the adoption and use of cryptocurrencies,
shortages, technological obsolescence and difficulty in obtaining
hardware, system failures, computer viruses and cybersecurity
threats, technological change, risks associated with the
Company's need for significant electrical power, the Company's
ability to successfully develop, market and launch any
cryptocurrency exchange, the Company's ability to protect the
confidentiality of its trade secrets, competition, general
economic conditions and other factors discussed 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. Except as expressly required by the federal securities
laws, the Company does not undertake any obligation to update
forward-looking statements contained in this press release, whether
as a result of new information, changed circumstances or future
events or for any other reason.
Media Contacts:
Travis Kruse
212-845-4272
travis.kruse@russopartnersllc.com
Nic Johnson
212-845-4242
nic.johnson@russopartnersllc.com
Investor Contact
IR@RiotBlockchain.com
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SOURCE Riot Blockchain, Inc.