Riot Blockchain, Inc. (NASDAQ: RIOT) (“Riot,” “Riot Blockchain”
or “the Company”), an industry leader in Bitcoin (“BTC”) mining
and hosting, announces monthly BTC production and operations
updates for October 2021, including an increase in estimated
self-mining hash rate capacity for 2022, updates to the status of
miner shipments and deployment, and updates on the 400 megawatts
(“MW”) infrastructure expansion at the Company’s Whinstone facility
(“Whinstone”).
Production Updates
- In October 2021, Riot produced 464 BTC, an increase of
approximately 433% over its October 2020 production of 87 BTC.
- Year to date through October 2021, the Company produced a total
of 2,921 BTC, an increase of approximately 257% over its BTC
production during the same 2020 period of 818 BTC.
- As of October 31, 2021, Riot held approximately 3,995 BTC, all
produced by the Company’s self-mining operations.
- Riot currently has a deployed fleet of approximately 27,270
miners, with a hash rate capacity of 2.8 exahash per second
(“EH/s”).
Riot intends to continue providing monthly operational updates
and unaudited production results through the end of 2021.
These updates are intended to keep shareholders informed of the
Company’s progress with regards to the execution of the previously
announced growth in Riot’s hash rate and to keep investors apprised
of the Company’s development of Bitcoin mining infrastructure
critical to de-risking future growth.
Mining Purchase Order and Increase in Estimated Hash Rate for
2022
Riot recently completed a $54 million purchase order with
Bitmain Technologies Limited (“Bitmain”) for 9,000 S19j Pro (100
TH/s) miners, with an anticipated delivery and deployment schedule
set for May 2022 through October 2022. As a result of this
purchase order, the Company anticipates that it will have
approximately 90,150 Antminers in operation, utilizing
approximately 284 MW of energy, by Q4 2022.
Also as a result of this purchase order, Riot has increased its
2022 estimated hash rate capacity by 11.7% to 8.6 EH/s,
representing an increase of approximately 0.9 EH/s over the
Company’s previously announced estimate of 7.7 EH/s. The
increase in the estimated hash rate to 8.6 EH/s does not include
any potential benefits from Riot’s previously announced build-out
of 200 MW of immersion-cooled infrastructure.
Miner Deployment and Shipment Updates
Shipments of 11,500 S19J Pro Antminers under previous purchase
orders are expected to be shipped to Riot’s Whinstone facility in
November 2021. While global logistics issues are impacting some
miner shipment schedules, impacts to the Company to date have not
been material, and Riot remains in close communication with Bitmain
and logistics providers working to mitigate delays where
possible.
Operations Update
In October 2021, Riot announced in connection with the
previously announced 400 MW expansion of Whinstone, 200 MW would be
committed to utilizing immersion-cooling technology. To the
Company’s knowledge, this represents the Bitcoin mining industry’s
first industrial-scale immersion-cooled deployment of mining
hardware (“miner(s),” “ASIC,” or “ASICs”). This development
encompasses two buildings currently under construction which are
expected to host approximately 46,000 S19 Antminer ASICs from
Riot’s already-contracted for miner fleet.
When ASICs are immersion-cooled, ASICs operate in a more stable
environment, allowing the equipment to run at higher productivity
rates. Based on industry data and the Company’s own
preliminary immersion-cooling test results, an estimated 25%
increase in hash rate is expected, with an estimated potential to
increase ASIC performance by as much as 50%. Riot expects to
have more robust test results from the Company’s pilot by the end
of Q1 2022. If successful, Riot will leverage its
infrastructure development capabilities to increase its Bitcoin
mining hash rate without relying solely on purchasing additional
mining equipment, resulting in increased operating efficiencies,
and thus, capital efficiencies.
Infrastructure Update
In October 2021, Riot’s 400 MW expansion at Whinstone continued
to make substantial progress, even amidst navigating the challenges
with the current state of the global supply chain. Progress
during the month included the arrival of approximately two-hundred
2.5 MW transformers, installation of the substation’s Power
Distribution Center, and preparation for commissioning Building F’s
100 MW transformer.
2022 Estimated Hash Rate
By Q4 2022, Riot anticipates a total self-mining hash rate
capacity of 8.6 EH/s, not including any expected incremental
productivity gains from the Company’s utilization of 200 MW of
immersion-cooling infrastructure and assuming full deployment of
approximately 90,150 Antminer ASICs. Approximately 95% of
Riot’s self-mining fleet will consist of the latest generation S19
series miner model. Upon full deployment, the Company’s total
self-mining fleet is expected to consume approximately 284 MW of
energy. In addition to the Company’s self-mining operations, Riot’s
Whinstone facility hosts approximately 200 MW of institutional
Bitcoin mining clients.
Conference Schedule
Riot will be participating in the Furey Research Partners Hidden
Gems Conference on November 17, 2021, and Roth Capital Partners’
10th Annual Technology Conference on November 18, 2021.
About Riot Blockchain, Inc.
Riot Blockchain (NASDAQ: RIOT) focuses on mining Bitcoin, and
through Whinstone, its subsidiary, hosting Bitcoin mining equipment
for institutional clients. The Company is expanding and
upgrading its mining operations through industrial-scale
infrastructure development and latest-generation miner procurement.
Riot’s headquarter is located in Castle Rock, Colorado, and
the Whinstone Facility operates out of Rockdale, Texas. The Company
also has mining equipment operating in upstate New York under a
co-location hosting agreement with Coinmint, LLC. For more
information, visit www.RiotBlockchain.com.
Safe Harbor
Statements in this press release that are not historical facts
are forward-looking statements that reflect management’s current
expectations, assumptions, and estimates of future performance and
economic conditions. Such statements are made in reliance on the
safe harbor provisions of Section 27A of the Securities Act of 1933
and Section 21E of the Securities Exchange Act of 1934. 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,”
“believes,” “plans,” “expects,” “intends,” “will,” “potential,”
“hope,” and similar expressions are intended to identify
forward-looking statements. Forward-looking statements 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 due to various risks
and uncertainties. These forward-looking statements may
include, but are not limited to, statements about the benefits of
the acquisition of Whinstone, including financial and operating
results, and the Company’s plans, objectives, expectations, and
intentions. Among the risks and uncertainties that could
cause actual results to differ from those expressed in
forward-looking statements include, but are not limited to:
unaudited estimates of BTC production; our future hash rate growth
(EH/s); our expected schedule of new miner deliveries; our ability
to successfully deploy new miners; MW capacity under development;
the integration of the businesses of the Company and
Whinstone may not be successful, or such integration may take
longer or be more difficult, time-consuming or costly to accomplish
than anticipated; failure to otherwise realize anticipated
efficiencies and strategic and financial benefits from the
acquisition of Whinstone; and the impact of COVID-19 on us, our
customers, or on our suppliers in connection with our estimated
timelines. Detailed information regarding other factors that
may cause actual results to differ materially from those expressed
or implied by statements in this press release may be found in the
Company’s filings with the U.S. Securities and Exchange Commission
(the “SEC”), including in the sections entitled “Risk Factors” and
“Cautionary Note Regarding Forward-Looking Statements” of the
Company’s Annual Report on Form 10-K for the fiscal year ended
December 31, 2020, and our other filings with the SEC, including,
but not limited to the additional risk factors set forth in the
Company’s Current Report on Form 8-K filed with the SEC on May 26,
2021, copies of which may be obtained from the SEC’s website
at www.sec.gov. All forward-looking statements included
in this press release are made only as of the date of this press
release, and the Company disclaims any intention or obligation to
update or revise any forward-looking statements to reflect events
or circumstances that subsequently occur, or of which the Company
hereafter becomes aware, except as required by law. Persons reading
this press release are cautioned not to place undue reliance on
forward-looking statements.
- Riot-Whinstone Facility October 2021
- Riot Hash Rate Growth October 2021
Trystine Payfer
Riot Blockchain, Inc.
303-794-2000 ext. 118
PR@riotblockchain.com
Phil McPherson
Riot Blockchain, Inc.
303-794-2000 ext. 110
IR@riotblockchain.com
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