Riot Announces November 2022 Production and Operations Updates

Castle Rock, CO, Dec. 05, 2022 (GLOBE NEWSWIRE) -- Riot Blockchain, Inc. (NASDAQ: RIOT) (“Riot” or “the Company”), an industry leader in Bitcoin (“BTC”) mining and data center hosting, announces unaudited production and operations updates for November 2022.

Bitcoin Production and Operations Updates for November 2022

• Riot produced 521 BTC, an increase of approximately 12% as compared to November 2021 production of 466 BTC.
• Riot held approximately 6,897 BTC, all produced by the Company’s self-mining operations, as of November 30, 2022.
• Riot sold 450 BTC, generating net proceeds of approximately $8.1 million.
• Riot had a deployed fleet of 72,428 miners, with a hash rate capacity of 7.7 exahash per second (“EH/s”), as of November 30, 2022.

“Riot again achieved a new record for total hash rate capacity during the month of November, resulting in our highest monthly Bitcoin production figure to date,” said Jason Les, CEO of Riot. “Despite this new level of production, expected production was approximately 660 Bitcoin given our operating hash rate over the month, assuming normalized performance of the mining pool we participate in. Variance in a mining pool can impact results and while this variance should balance out over time, can be volatile in the short term. This variance led to lower Bitcoin production than expected in the month of November, relative to our hash rate.”  

“In order to ensure more predictable results going forward, Riot will be transitioning to another mining pool which offers a more consistent reward mechanism, so that Riot will fully benefit from our rapidly growing hash rate capacity as we work towards our goal of reaching 12.5 EH/s in the first quarter of 2023.”

Mining Deployment and Shipment Update

During the month of November, Riot received 10,512 new S19-series miners, increased its deployed fleet by 6,912 S19-series miners, with approximately 6,912 miners staged for deployment. Upon deployment of the staged miners, the Company expects to have a total of 79,340 miners deployed with a hash rate capacity of approximately 9.7 EH/s. Additionally, shipments of 5,019 S19-series miners have been initiated and are expected to be received during December 2022.

Infrastructure Update

Riot’s construction and engineering teams made significant headway in November, with all exterior structures at the Rockdale Facility now complete.

In Building D, the Company’s construction team has completed installation of the air-cooling rack system, while the electrical team continues testing low voltage cables. In both Buildings D and E, Riot has begun initial installation of interior filter wall frames which maintain cool interior temperatures. In Building E, the Company completed the installation of underground water systems to support the building’s evaporate cooling walls, while the engineering team continued installations of the air-cooling rack system.

Estimated Hash Rate Growth

During Q1 2023, Riot anticipates a total self-mining hash rate capacity of 12.5 EH/s, assuming full deployment of approximately 115,450 Antminer ASICs, but excluding any potential incremental productivity gains from the Company’s utilization of 200 MW of immersion-cooling infrastructure. Substantially all of Company’s self-mining fleet will consist of the latest generation S19-series miners. In addition to the Company’s self-mining operations, Riot hosts approximately 200 MW of institutional Bitcoin mining clients.

Human Resources

Riot is currently recruiting for positions in the following departments: Accounting, Finance, Legal, and Public Policy. Join our team in building, expanding, and securing the Bitcoin network. Open positions are available at: https://www.riotblockchain.com/careers.

Investor Relations

The Company is scheduled to hold a Business Update call on Wednesday, December 14th, 2022 at 5:30 PM EST. Investors, media, analysts and the public may listen to a live webcast of the Business Update call. To register for the call, click here.

About Riot Blockchain, Inc.

Riot’s (NASDAQ: RIOT) vision is to be the world’s leading Bitcoin-driven infrastructure platform.

Our mission is to positively impact the sectors, networks and communities that we touch.  We believe that the combination of an innovative spirit and strong community partnership allows the Company to achieve best-in-class execution and create successful outcomes.

Riot is a Bitcoin mining and digital infrastructure company focused on a vertically integrated strategy. The Company has Bitcoin mining data center operations in central Texas, Bitcoin mining operations in central Texas, and electrical switchgear engineering and fabrication operations in Denver, Colorado.

For more information, visit www.riot.inc.

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 rely 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 the factors identified by the Company’s management which they believe may cause actual results to differ materially from those expressed or implied by such forward-looking statements in this press release may be found in the Company’s filings with the U.S. Securities and Exchange Commission (the “SEC”), including the risks, uncertainties and other factors discussed under 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, as amended, and the other filings the Company makes with the SEC, copies of which may be obtained from the SEC’s website, 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 such 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 such forward-looking statements. 

Attachments

• Riot Blockchain Hash Rate Capacity Growth Updated November 2022
• Riot's Rockdale Facility

Alexis Brock
Riot Blockchain, Inc.
512-940-6014
PR@riotblockchain.com

Phil McPherson
Riot Blockchain, Inc.
303-794-2000 ext. 110
IR@riotblockchain.com