Riot Blockchain Reports Record First Quarter 2021 Financial Results, Current Operational and Financial Highlights
May 17 2021 - 5:28PM
Riot Blockchain, Inc. (NASDAQ: RIOT) ("Riot" or the
"Company"), one of the leading Nasdaq-listed public Bitcoin
(“BTC”) mining companies in the United States, reported financial
results as of and for the three-months ended March 31, 2021. The
unaudited financial statements are available on Riot's website and
here.
- Increased mining revenue by 881.1% to $23.2 million for the
three-month period ended March 31, 2021, as compared to $2.4
million for the same three-month period in 2020.
- Increased mining revenue margin to 67.5% for the three-month
period ended March 31, 2021, as compared to 40.4% for the same
three-month period in 2020.
- Produced record net income of $7.5 million, or $0.09 per share
for the three-month period ended March 31, 2021, as compared to a
$(4.3) million net loss, or $(0.15) per share, for the same
three-month period in 2020.
- Achieved a record net income margin of 32.5% for the
three-month period ended March 31, 2021.
- Increased total cash and Bitcoin to $275.6 million, as compared
to $235.0 million as of December 31, 2020.
“We are extremely pleased with Riot’s record quarterly financial
results, which builds upon a transformative 2020,” said Jason Les,
Riot’s CEO. “The Company’s improved financial results are a
direct result of Riot’s absolute focus on Bitcoin mining and
growing its mining operations. With the signing of the
definitive agreement to acquire Whinstone US, the Company’s
financial and operational prospects are very exciting. We
plan to amplify our focus on initiatives that will drive continued
growth for the Company, increasing the US-based share of the
Bitcoin mining landscape.”
First Quarter 2021 and Recent Financial Highlights
Riot continues to attain significant milestones, driven by its
focus on Bitcoin mining.
- Reported a Company record $7.5 million in net income for the
three-month period ended March 31, 2021, as compared to a $(4.3)
million net loss for the same three-month period in 2020.
- Increased mining revenues by 881.1%, to $23.2 million for the
three-month period ended March 31, 2021, as compared to $2.4
million for the same three-month period in 2020.
- Increased mining revenue margin, excluding depreciation and
amortization, to 67.5% for the three-month period ended March 31,
2021, as compared to 40.4% for the same three-month period in
2020.
- Increased total mined BTC by 62.0% on a sequential
quarter-over-quarter basis, with 491 BTC mined in the first quarter
of 2021, as compared to 303 BTC mined in the fourth quarter of
2020.
- Completed the first quarter of 2021 with record current assets
and zero debt, with $275.6 million in cash and BTC as reported on
the balance sheet. In addition, as of April 30, 2021, the
Company’s unaudited BTC balance stood at 1,771 BTC, all of which
were produced by its mining operations.
- The average BTC price used to calculate Riot’s first quarter
2021 mining revenues was approximately $46,700.
First Quarter 2021 and Recent Operational Highlights
- Announced the signing of a definitive agreement to acquire
Whinstone US, Inc. (“Whinstone”) to create a leading US-based
corporate pillar in support of the Bitcoin mining network.
Whinstone owns and operates North America’s largest Bitcoin mining
facility, with 300 MW in developed capacity and an attractive
long-term power purchase agreement. Upon closing, Riot will
be one of the largest publicly traded Bitcoin mining companies
operating in North America, as measured by 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.
- Strengthened the Company’s management team by appointing Jason
Les to Chief Executive Officer and Megan Brooks to Chief Operating
Officer, and hiring Ryan Werner as Vice President, Finance and Phil
McPherson as Vice President, Capital Markets.
- During the three-month period ended March 31, 2021, Riot
received 6,703 S19 Pro Antminers as per purchase contracts with
Bitmain previously announced in 2020, resulting in a total of
13,746 miners deployed as of March 31, 2021.
- Subsequent to March 31, 2021, the Company received a further
8,900 S19 Pro Antminers as per purchase contracts with Bitmain
previously announced in 2020. When fully deployed, Riot’s
fleet will increase to 22,646 miners with an estimated hash rate
capacity of 2.3 exahash per second (“EH/S”).
- During 2021, the Company entered into additional purchase
agreements with Bitmain for the purchase of 43,500 Antminer S19j
(90 Terahash per second) (“TH/s”) miners for a total purchase price
of $145.7 million. Once fully deployed, Riot’s hash rate capacity
is estimated to reach 7.7 EH/s in the fourth quarter of
2022.
First Quarter 2021 Financial Results
Mining margin, computed as mining revenues in excess of cost of
revenues (excluding depreciation and amortization which is
separately stated), was $15.6 million (67.5% of total revenue),
which compares to $1.0 million for the same three-month period in
2020. The improvements in revenue and gross profit were
primarily due to changes in the price of Bitcoin, combined with the
greater number and higher efficiencies of the new generation miners
deployed in 2021, net of increases in the difficulty index
associated with solving BTC mining algorithms.
Selling, general, and administrative ("SG&A") expenses
increased 46.2% to $5.5 million, as compared to $3.7 million for
the same three-month period in 2020. The increase in SG&A
expenses was primarily due to professional fees associated with
transaction expenses of approximately $2.4 million incurred during
the first quarter of 2021. Excluding transaction expenses,
recurring SG&A expenses would have totalled $3.1 million.
Net income for the quarter ended March 31, 2021 was $7.5
million, or $0.09 per share, as compared to a net loss of $(4.3)
million, or $(0.15) per share, in the same period last year.
At March 31, 2020, the Company reported $275.6 million in cash
and Bitcoin, as compared to $235.0 million at December 31,
2020.
Hash Rate Growth
During Q4 2022, Riot anticipates achieving a total hash rate
capacity of 7.7 EH/s, assuming full deployment of its anticipated
fleet of approximately 81,146 Antminers acquired from Bitmain, 95%
of which will be the latest generation S19 series model of
miners. 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). This demonstrates Riot’s commitment to being a market
leader by building one of the largest and most efficient Bitcoin
mining fleets in the industry.
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.
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 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. Detailed information regarding factors that may
cause actual results to differ materially from the results
expressed or implied by statements in this press release relating
to the Company may be found in the Company's periodic filings with
the U.S. Securities and Exchange Commission (the “SEC”), including
the factors described 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
release.
Investor Contact - Phil McPherson
Riot Blockchain, Inc.
303-794-2000 ext. 110
IR@riotblockchain.com
PR Contact
Riot Blockchain, Inc.
PR@riotblockchain.com
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