Castle Rock, CO, Jan. 05, 2022 (GLOBE NEWSWIRE) -- 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.

Attachments

  • 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
Source: Riot Blockchain, Inc.

2022 GlobeNewswire, Inc., source Press Releases