Riot Blockchain Announces March Production and Operations Updates
Riot Blockchain, Inc. (NASDAQ: RIOT) ("Riot”, “Riot Blockchain”
or the “Company")
, one of the leading Nasdaq listed Bitcoin
mining companies in the United States, announces an operations
update that includes an unaudited Bitcoin (“BTC“) production and an
unaudited BTC holdings update, through March 2021.
Production and Operations Updates
- In March 2021, Riot produced 187 BTC, an increase of 80% over
its pre-halving March 2020 production of 104 BTC.
- In Q1 2021, the Company produced 491 BTC, an increase of 75%
over its pre-halving Q1 2020 production of 281 BTC.
- As of March 31, 2021, Riot holds over 1,565 BTC on its balance
sheet, all of which was produced by its mining operations.
- On April 6, 2021, the Company bolstered its management team,
appointing Megan Brooks as Chief Operating Officer and welcoming
Phil McPherson as Vice President, Capital Markets and Ryan Werner
as Vice President, Finance.
- On April 8, 2021, Riot announced that it had signed a
definitive agreement to acquire Whinstone US, Inc. (“Whinstone”),
creating a US-based industry leader in Bitcoin mining.
The Company plans to continue to provide monthly operational
updates and unaudited production results through the end of 2021.
These updates are intended to keep shareholders informed of
Riot’s substantial growth as it continues to deploy its expanding
New Miner Acquisitions
On April 7, 2021, Riot announced a large-scale contract for the
purchase of 42,000 S19j Antminers for $138.5 million from Bitmain
Technologies Limited (“Bitmain”). This purchase represents a
significant step forward in Riot’s strategic initiative to increase
its Bitcoin mining hash rate, which is now estimated to reach
approximately 5 exahash per second (EH/s) by the end of 2021, and
7.7 EH/s once fully deployed by the end of 2022. This level
of growth represents a 93% increase over the Company’s previously
estimated committed hash rate capacity of 4.0 EH/s by October
Recent Miner Deliveries
In connection with previously announced purchase orders with
Bitmain in August 2020, 2,400 S19 Pro Antminers were shipped in
late March and early April 2021, and are in the process of being
received at Coinmint, LLC’s (“Coinmint”) facility in Massena,
NY. Installation of these 2,400 miners is expected to be
completed by late April, and upon deployment, Riot will have a
total of 16,146 Antminers in operation utilizing approximately 51
megawatts (“MW”) of energy, with an estimated hash rate capacity of
Hash Rate Growth
By Q4 2022, Riot expects a total hash rate capacity of 7.7 EH/s
with a fleet of approximately 81,146 Antminers, 95% of which will
be the latest generation S19 series model. When fully
deployed, the Company’s total fleet is expected to consume
approximately 257.6 MW of energy with an overall hash rate
efficiency of 33 joules per terahash (J/TH). As a market
leader, this continues to demonstrate Riot’s commitment to building
one of the most efficient Bitcoin mining fleets in the
On April 8, 2021, Riot announced the signing of a definitive
agreement pursuant to which Riot will acquire Whinstone, including
all of its assets and operations, for consideration of $80 million
cash plus a fixed 11.8 million shares of Riot common stock, equal
to an implied total transaction value of approximately $651 million
based on Riot’s closing share price of $48.37 on April 7, 2021.
Whinstone is the owner and operator of North America’s largest
Bitcoin hosting facility, with 300 MW in developed capacity and an
attractive long-term power purchase agreement. Whinstone’s
facility is based in Rockdale, Texas and is located on a 100-acre
site with a total power capacity of 750 MW. Whinstone’s team
is comprised of approximately 100 employees who have built
Whinstone’s Texas operations from greenfield to commercialization
in less than twelve months.
The acquisition of Whinstone is a transformative event for Riot
and its shareholders. Riot views Whinstone as a foundational
element in its strategy to become an industry-leading Bitcoin
mining platform, on a global scale. Upon the closing of this
acquisition, Riot is expected to be the largest publicly traded
Bitcoin mining and hosting company in North America, as measured by
total developed capacity. The transaction is expected to
close in the second quarter of 2021, subject to the satisfaction or
waiver of customary closing conditions, including receipt of
required regulatory clearances.
The Company announces it will be filing its 2020 Quarterly
Report on Form 10-Q on May 17, 2021.
About Riot Blockchain, Inc.
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 is headquartered in Castle Rock, Colorado, and the
Company’s mining operations are located in upstate New York, under
a co-location hosting agreement with Coinmint. For more
information, visit www.RiotBlockchain.com.
The information provided in this press release may include
forward-looking statements within the meaning of the federal
securities laws, including as to the completion and effects of the
contemplated acquisition by the Company of Whinstone and the future
financial performance and operations 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,"
“believes,” "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. These
forward-looking statements include, but are not limited to,
statements about the benefits of the contemplated 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 the forward-looking statements are: (1) the
satisfaction or waiver of the conditions precedent to the
consummation of the contemplated acquisition, including receipt of
required regulatory clearances; (2) the occurrence of any event,
change or other circumstance that could give rise to the
termination of the definitive purchase agreement; (3) unanticipated
difficulties or expenditures relating to, of the failure to realize
the benefits of, the contemplated acquisition; (4) legal
proceedings, judgments or settlements in connection with the
contemplated acquisition; (5) disruptions of current plans and
operations caused by the announcement and pendency of the
contemplated acquisition; and (6) the response of employees,
customers, suppliers, business partners and regulators to the
announcement of the contemplated acquisition. Detailed information
regarding other factors that may cause actual results to differ
materially from those expressed or implied by statements in this
press release relating to the Company 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, which was filed with the SEC on March 31, 2021,
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
Riot Blockchain, Inc.
Investor Contact - Phil McPherson
Riot Blockchain, Inc.
303-794-2000 ext. 110