Riot Blockchain, Inc. (NASDAQ: RIOT) (“Riot,” “Riot
Blockchain” or “the Company”), an industry leader in
Bitcoin mining and hosting, is pleased to announce that it has
initiated a large-scale, 1 gigawatt (“GW”) development to expand
its Bitcoin mining and hosting capabilities (“the Expansion”) in
Navarro County, Texas.
The Expansion has begun with the development of an initial 400
megawatts (“MW”) of capacity on a 265-acre site, with
immersion-cooled mining and hosting operations expected to commence
in July 2023.
This first phase of the Expansion includes land acquisition,
site preparation, substation development, transmission
construction, along with construction of ancillary buildings and
four buildings utilizing the Company’s immersion-cooling
infrastructure and technology. Riot estimates that the total cost
of the first phase of the Expansion will be approximately $333
million, which is scheduled to be invested over the remainder of
2022, 2023, and the first quarter of 2024.
After completing the first 400 MW phase of the Expansion, future
capacity at the site will be expandable by an additional 600 MW to
1,000 MW, or 1 GW, via the 345 kV Navarro switch that is located
approximately 1,250 feet away from the site.
“Upon completion of the Expansion, Riot’s developed capacity
will total 1.7 GW, establishing the Company among the largest
Bitcoin mining operations globally,” said Jason Les, CEO of Riot.
“This Expansion is a testament to the Company’s demonstrated
ability to build and deliver high-quality large-scale digital asset
infrastructure for its Bitcoin mining operations and future hosted
clients. Riot’s ability to source such a significant expansion
opportunity in Texas exemplifies the Company’s partnership-driven
approach with all stakeholders, including the Company’s business
partners, ERCOT, and all levels of government, to commit to
sustainable economic development.”
Riot plans to utilize its strategic partnership with Priority
Power Inc. (“Priority Power”), an industry leader in Bitcoin mining
energy services, to support the Expansion. Priority Power services
include managing site development, utility interconnection, power
purchase agreements and power load flexibility. The Company’s
relationship with Priority Power began with the development of
Riot’s Whinstone US, Inc. (“Whinstone”) facility in Rockdale, Texas
(the “Whinstone Facility”), and has been a key partner in its power
strategy since.
Located approximately one hour south of Dallas, the Expansion
site is within two hours of the Whinstone Facility, allowing the
Company to leverage its existing talent pool and the proven
development capabilities of its experienced employee base. The
first 400 MW phase of the Expansion is anticipated to create
approximately 270 direct jobs and drive significant positive
economic change in Navarro County.
“This Expansion is a key example of the positive environmental,
societal, and economic impacts that Bitcoin mining brings to
under-developed regions in America,” said Chad Harris, CEO of
Whinstone, a wholly-owned subsidiary of Riot. “A key part of Riot’s
business model is to amplify the positive impacts that the
Company’s business model has on the local community. We look
forward to replicating the positive impacts that Riot has had on
the community of Rockdale in Milam County, in Navarro County.”
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. Through Riot’s
subsidiary ESS Metron, the Company engineers and manufacturers
electrical equipment solutions for Bitcoin mining and other
industries. The Company’s headquarters is in Castle Rock, Colorado,
the Whinstone Facility operates in Rockdale, Texas, and the
Expansion is in Corsicana, Texas. Riot 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. 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
Bitcoin production; our future hash rate growth (EH/s); the
anticipated benefits, construction schedule and costs associated
with the Navarro site expansion; our expected schedule of new miner
deliveries; our ability to successfully deploy new miners; M.W.
capacity under development; we may not be able to realize the
anticipated benefits from immersion-cooling; 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, 2021, and our other filings with the SEC, copies of
which may be obtained from the SEC’s website at . 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.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.
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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