Riot Blockchain, Inc. (NASDAQ: RIOT) (“Riot,” “Riot
Blockchain” or “the Company”), an industry leader in
Bitcoin (“BTC”) mining and hosting, announces production and
operations update for December 2021, including a further increase
in estimated self-mining hash rate capacity for 2022, updates to
the status of miner shipments and deployment, updates on the 400
megawatt (“MW”) infrastructure expansion at the Company’s Whinstone
US, Inc., (“Whinstone”) facility in Rockdale, Texas (the “Whinstone
Facility”) and other corporate highlights.
“Riot is purpose-built to excel in Bitcoin mining,” said Jason
Les, CEO of Riot Blockchain. “As a result of the Company’s
vertically-integrated strategy, Riot enters 2022 with a uniquely
de-risked expansion plan, as the major components to succeed at an
industrial-scale have been internalized. In addition to reducing
execution risk, Riot’s vertically-integrated strategy highlights
the significant operational and financial benefits of its
investments in engineering and technology, which is further
demonstrated by the deployment of immersion-cooling technology at a
significant industrial scale. In 2022, Riot plans to continue
focusing on operational execution, which management believes will
continue to highlight the Company’s vertically-integrated business
strategy and its position as a low-cost producer of Bitcoin.”
Production Updates
- In December 2021, Riot produced 425 BTC, an increase of
approximately 334%, as compared to the December 2020 production of
98 BTC.
- In Q4 2021, Riot produced 1,355 BTC, increasing approximately
349%, as compared to Q4 2020 production of 302 BTC.
- In 2021, Riot produced 3,812 BTC, increasing approximately
269%, as compared to 2020 production of 1,033.
- As of December 31, 2021, Riot held approximately 4,889 BTC, all
produced by the Company’s self-mining operations.
- Riot currently has a deployed fleet of approximately 29,593
miners, with a hash rate capacity of 3.1 exahash per second
(“EH/s”).
Riot intends to continue providing monthly operational updates
and unaudited production results for the foreseeable future or
until otherwise disclosed. These updates are intended to keep
shareholders informed of the Company’s progress regarding 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 Orders and Increase in Estimated Hash
Rate for 2022
In December 2021, Riot executed additional purchase orders
totaling $301 million with Bitmain Technologies Limited (“Bitmain”)
for an additional 27,000 of their latest miner model S19XP (140
TH/s), with an anticipated delivery and deployment schedule set for
July 2022 through December 2022. As a result of these purchase
orders, the Company anticipates having approximately 120,150
Antminers in operation, utilizing approximately 370 MW of energy,
by Q4 2022.
Also, because of these purchase orders, Riot is increasing its
2022 estimated hash rate capacity by 3.8 EH/s to 12.8 EH/s,
representing a 42% increase over the Company’s previously announced
estimate of 9.0 EH/s. The increase in the estimated hash rate to
12.8 EH/s does not include any potential incremental hash rate
production benefits associated with Riot’s in-process build-out of
200 MW of immersion-cooled infrastructure at the Whinstone
Facility.
Miner Deployment and Shipment Updates
In December 2021, the Company received 8,136 S19J-Pros from
previous purchase orders, with an additional 2,700 S19J-Pros
scheduled to arrive at Riot’s Whinstone Facility in January 2022.
While global logistics issues are impacting some miner shipment
schedules, the effects 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. Riot
expects its hash rate to be approximately 4.1 EH/s when the 8,136
miners received in December 2021 and the 2,700 miners anticipated
for delivery in January 2022 are installed at the Whinstone
Facility.
The Company began initial deployments of miners in its newly
constructed immersion-cooled “Building F” in November 2021, and
expects to continue deploying received miners into Building F as
capacity is completed.
Riot is also monitoring the continued development of the
COVID-19 pandemic. Due to the surge in recent variants, the Company
has adjusted its operations to ensure the safety of its employees,
which Riot considers its most important asset.
Infrastructure Update
In December 2021, Riot completed Building F, the Company’s first
industrial-scale immersion-cooled dedicated building, in addition
to receiving most of the structural components required for
Buildings D, E, and G. The construction completion timeline
is currently on-time, despite global supply chain shortages and
delays.
In December 2021, Riot closed its previously announced strategic
acquisition of ESS Metron, one of the world's leading designers and
manufacturers of power distribution equipment. The acquisition of
ESS Metron further deepens Riot’s bench strength as a leading
vertically-integrated business by securing Riot’s supply chain to
critical infrastructure electrical components.
2022 Estimated Hash Rate
By Q4 2022, Riot anticipates a total self-mining hash rate
capacity of 12.8 EH/s, assuming full deployment of approximately
120,150 Antminer ASICs, but excluding any potential expected
incremental productivity gains from the Company’s utilization of
200 MW of immersion-cooling infrastructure. Approximately 97% of
Riot’s self-mining fleet will consist of the latest generation S19
series miner model. Upon full deployment of all currently
contracted miners, the Company’s total self-mining fleet will
consume approximately 370 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.
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
headquarters 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. Due to
various risks and uncertainties, the actual results and the timing
of events could differ materially from those anticipated in such
forward-looking statements. These forward-looking statements
may include, but are not limited to, statements about the benefits
of acquisitions, 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 acquired businesses 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
our acquisitions; 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 outlined 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 rely on forward-looking
statements.
- Riot is increasing its 2022 estimated hash rate capacity by 3.8
EH/s to 12.8 EH/s, representing a 42% increase over the Company’s
previously announced estimate of 9.0 EH/s.
- In December 2021, Riot completed Building F, the Company’s
first industrial-scale immersion-cooled dedicated building, in
addition to receiving most of the structural components required
for Buildings D, E, and G.
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
Riot Platforms (NASDAQ:RIOT)
Historical Stock Chart
From Aug 2024 to Sep 2024
Riot Platforms (NASDAQ:RIOT)
Historical Stock Chart
From Sep 2023 to Sep 2024