Riot Blockchain, Inc. (NASDAQ: RIOT) (“Riot,” “Riot
Blockchain” or “the Company”)
, an industry leader in
Bitcoin (“BTC”) mining and hosting, announces unaudited production
and operations updates for July 2022.
Bitcoin Production and Operations Updates
- In July 2022, Riot produced 318 BTC, a decrease of
approximately 28% as compared to July 2021 production of 443 BTC,
while significantly reducing overall power costs through effective
employment of its proprietary power strategy.
- Riot earned an estimated $9.5 million in power credits as a
result of curtailment activity, to be credited against its power
invoices; the $9.5 million in power credits equates to
approximately 439 BTC, computed by using the July 2022 average BTC
price of $21,634.
- As of July 31, 2022, Riot held approximately 6,696 BTC, all
produced by the Company’s self-mining operations.
- In July 2022, Riot sold 275 BTC, generating net proceeds of
approximately $5.6 million.
- Riot currently has a deployed fleet of 40,311 miners, with a
hash rate capacity of 4.2 exahash per second (“EH/s”). Current hash
rate capacity has been temporarily impacted by the ongoing
relocation of a portion of the Company’s mining fleet, from a
third-party hosting facility to Riot’s Whinstone Facility, which is
ultimately expected to further reduce production costs.
- Riot’s Q2 2022 financial report is planned to be released after
market close Tuesday, August 9, 2022.
“We are pleased to report that Riot has demonstrated the
effectiveness of its power strategy during the month of July. The
Company has consistently and proactively pursued low-cost,
large-scale access to power under its long-term fixed rate power
contracts, providing it with a unique ability to support ERCOT and
release capacity back into the grid when power demand in Texas is
high,” said Jason Les, CEO of Riot.
“As energy demand in ERCOT reached all-time highs this past
month, the Company voluntarily curtailed its energy consumption in
order to ensure that more power would be available in Texas. Riot
curtailed a total of 11,717 megawatt hours in July, enough to power
13,121 average homes for one month. Curtailing the Company’s power
consumption reduced BTC production by an estimated 21% in July, but
also significantly reduced Riot’s power costs for the month. By
providing power back into the ERCOT grid during periods of peak
demand, the Company estimates that power credits and other benefits
from curtailment activities totaled an estimated $9.5 million,
significantly outweighing the reduction in BTC mined. When
applied to anticipated power costs for the month, the power credits
and other benefits are expected to effectively eliminate Riot’s
power costs for July, further enhancing the Company’s
industry-leading financial strength amid a challenging
macroeconomic environment for the industry."
Mining Deployment and Shipment Update
During the month of July, the Company ended its hosting
agreement with Coinmint LLC (“Coinmint”) and shipped all of its
remaining miners at Coinmint’s Massena, NY facility to Riot’s
Whinstone Facility in Rockdale, TX. The relocation of all of the
Company’s previously deployed miners at Coinmint is in progress by
way of a swap agreement with another Bitcoin mining company and
shipping of the balance of previously deployed miners at Coinmint.
While this redeployment of miners is underway, approximately 12,146
miners are currently offline and therefore temporarily not counted
in the deployed fleet figure. As a result of this relocation of
miners, the Company expects to further reduce its cost of
production through lower power costs and by eliminating all
third-party hosting fees on its hosted mining fleet.
Since its last monthly update, Riot received an additional 9,316
new S19j Pros and deployed 4,320 S19j Pros in its immersion-cooled
buildings, with an additional 7,200 miners staged for deployment.
Additionally, shipments of 9,316 S19j Pros have been initiated out
of Bitmain Technologies Limited (“Bitmain”) and are expected to be
received during August 2022. Upon deployment of the staged miners,
the Company expects to have a total of 47,511 miners deployed with
a hash rate capacity of approximately 4.9 EH/s.
In July, Riot's Whinstone Facility made substantial framework
and deployment progress towards the Company's 400 megawatt ("MW")
digital infrastructure expansion project.
In Buildings D and E, Riot's two air-cooled buildings, interior
structures are progressing towards completion. Engineers have begun
installing Riot's proprietary air-cooling rack system in Building
D, and the successful testing and installation of medium voltage
transformers has been completed. The installation of additional
switchboards, medium voltage transformers, and electrical work
continues in Building E.
Building F, Riot’s first immersion-cooled building, was
completed and operational as of May 2022. Building G advances with
the installation of dry-cooler and water pumping systems and the
commissioning of medium voltage switchgear, and the placement of
In April 2022, Riot announced a 1 gigawatt (“GW”) development to
expand its mining and hosting capabilities in Navarro County,
Texas. This month, the Company is excited to share that earthwork
and development of the first phase of access roads have begun at
Riot's 265-acre Corsicana Facility.
Estimated Hash Rate Growth
By 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
miner model. In addition to the Company’s self-mining operations,
Riot hosts approximately 200 MW of institutional Bitcoin mining
The Company is pleased to announce the hiring of Pierre Rochard,
who has served on Riot's advisory board for over 3 years, as Vice
President of Research. Mr. Rochard was most recently Product
Manager for Bitcoin at Kraken, one of the largest digital
asset-focused exchanges. Mr. Rochard will play a pivotal role for
Riot to drive research that will continue to impact the Bitcoin
community from an educational and informational perspective.
The Company plans to issue its Second Quarter Financial Report
after market close on August 9, 2022.
About Riot Blockchain, Inc.
Riot Blockchain’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
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.RiotBlockchain.com.
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.
- Net Benefit from Proprietary Power Strategy in July 2022
- Riot Blockchain Hash Rate Capacity Growth Updated July
Riot Blockchain, Inc.
Riot Blockchain, Inc.
303-794-2000 ext. 110
Riot Blockchain (NASDAQ:RIOT)
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