Riot Blockchain Announces February Production and Operations Updates

Castle Rock, CO, March 03, 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 February 2022, status of miner shipments and deployment, and updates on the 400 megawatt (“MW”) infrastructure expansion at the Company’s Whinstone US, Inc., (“Whinstone”) facility in Rockdale, Texas (the “Whinstone Facility”).

“Throughout the month of February Riot has continued to make progress on the first phase of its 200 MW immersion-cooled Bitcoin mining deployment, with over 10,000 S19j Pro Antminers now deployed in immersion-cooling tanks,” said Jason Les, CEO of Riot Blockchain. “We have begun the performance evaluation process, and will be monitoring our immersion performance data closely over the next 60 days. As our team continues to build out our immersion operation, we are evaluating and assessing future opportunities to further leverage our expertise in immersion-cooling development and deployment.”

Production Updates

• In February 2022, Riot produced 436 BTC, an increase of approximately 189%, as compared to February 2021 production of 179 BTC.
• As of February 28, 2022, Riot held approximately 5,783 BTC, all produced by the Company’s self-mining operations.
• Riot currently has a deployed fleet of approximately 38,310 miners, with a hash rate capacity of 3.9 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 its Bitcoin mining infrastructure, which the Company believes is critical to de-risking its future growth plans.

Mining Deployment and Shipment Updates

Since its last monthly update, Riot received an additional 5,454 new S19j Pros, deployed approximately 5,800 S19j Pros in its immersion-cooled building, along with 8,559 additional miners staged for deployment. Additionally, 3,404 S19j Pros have been shipped from Bitmain and are expected to be received during March 2022. Once the staged miners and those from the March delivery are deployed, the Company expects to have a total of 50,273 miners deployed with a hash rate capacity of approximately 5.0 EH/s.

Infrastructure Update

During February 2022, Riot continued to build on the progress made towards the completion of its previously announced 400 MW expansion project. Despite interruptions related to severe winter storms affecting central Texas, the Company’s best-in-class development team advanced on the installation of several critical infrastructure support systems.

Riot’s immersion-cooled Bitcoin mining progress includes Building F, the first erected immersion-cooled dedicated building, now with over 10,000 S19j Pros deployed.

In addition to the second dedicated immersion-cooled Building G, reaching 50% of structural completion, with an estimate of the first miners being deployed in the immersion systems by April 2022, to begin building out to the full capacity of approximately 23,040 Bitcoin miners.

Building D, an air-cooled state-of-the-art building is over 50% complete, with the roof now installed, simply awaiting the arrival and installation of the louvers.

Building E, another air-cooled state-of-the-art building and Building X, the Company’s Employee Training and Health and Safety Center, have continued progressing including the completion of pads for switchboards, and transformers, and the installation of the steel structure frames.

Completion of the buildings and critical infrastructure remains on schedule for completion by Q2 2022, with the final components of the buildout being completed in parallel with miner shipments.

2022 Estimated Hash Rate

By January 2023, Riot anticipates a total self-mining hash rate capacity of 12.8 EH/s, assuming full deployment of approximately 120,000 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.

2021 Annual Financial Report Filing

As previously reported, Riot became a large accelerated filer for the first time for its 2021 Annual Report.. As a result, the statutory filing deadline for the Company’s Annual Report on Form 10-K was March 1, 2022. Due to the complexities of reporting on two large acquisitions, one completed in December 2021, and required expanded procedures and disclosures as a large accelerated filer, the Company filed a Form 12b-25 with the Securities and Exchange Commission, providing until March 16, 2022, for its Form 10-K filing.

Expansion Evaluation and Planning

Riot is currently evaluating a number of possible expansion opportunities to continue to expand while building a comprehensive platform supporting the Bitcoin network, that is in the best interest of our shareholders and the community we operate in.

Human Resources

The Company is proud to announce personnel changes to the corporate office, including the hiring of IT Technician, Jahaira Alaniz, and Business Process Analyst, Joey Jaraczewski.

Additionally, Riot is pleased to share that its Whinstone Facility, the largest employer in Milam County, Texas, has hired and promoted several lead team members in the following positions:

• Building Supervisor
• Logistics Coordinator
• Project Coordinator
• Construction Supervisor
• Operations HSE Field Safety Coordinator
• Security and Risk Manager
• Shop Supervisor
• Administrative Assistant
• Accounting Admin

Conference Schedule

Riot will participate in the following investor events during March 2022:

• 34th Annual Roth Conference, held in Laguna Beach, CA, March 13-15th
• Crypto Expo hosted by Ladenburg Thalman, held virtually, March 24th
• Crypto Mining Day hosted by Bank of America, held virtually March 28th
• Crypto and Blockchain Summit 2022 hosted by Barclays, held virtually, March 29-30th 
• Digital Wildcatters Empower event held in Houston, TX, March 30-31st

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. Through Riot’s subsidiary ESS Metron, the Company engineers and manufacturers electrical equipment solutions for Bitcoin mining and other industries. The Company’s headquarters is in Castle Rock, Colorado, and the Whinstone Facility operates in Rockdale, Texas. Riot 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; 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 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's Whinstone State-of-the-Art Infrastructure Update February 2022
• Riot Hash Rate Capacity Groth (EH/s) Updated February 2022

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