Riot Blockchain Inc RIOT

Riot Reaches 22.0 EH/s in Deployed Hash Rate, Exceeding Q2 2024 Target, and Produces 255 Bitcoin in June 2024

CASTLE ROCK, Colo., July 3, 2024 /PRNewswire/ -- Riot Platforms, Inc. (NASDAQ: RIOT) ("Riot" or "the Company"), an industry leader in vertically integrated Bitcoin ("BTC") mining, announces unaudited production and operations updates for June 2024.

Riot Exceeds Q2 2024 Target, Reaches 22.0 EH/s in Deployed Hash Rate – Watch Here.

Bitcoin Production and Operations Updates for June 2024 

1. Unaudited, estimated.
2. As of month-end.
3. Average over the month.
4. Estimated power curtailment credits.
5. Estimated credits received from participation in ERCOT demand response programs.
6. Estimated. Inclusive of all transmission and distribution charges, fees, adders, and taxes. Net of Total Power Credits.

"June was a historic month for Riot, during which we added an additional 7.3 EH/s to our hash rate capacity in Buildings A1 and A2 at our Corsicana Facility and by utilizing additional available capacity at our Rockdale Facility, bringing total capacity to 22.0 EH/s," said Jason Les, CEO of Riot. "This unprecedented achievement is a reflection of the incredible team and expertise at Riot, and I'm extremely proud to announce that this rapid deployment means that Riot has exceeded our previously announced hash rate goal for Q2 2024 of 21.4 EH/s. All miners deployed were latest generation MicroBT miners and the final energization of these miners primarily took place in the last several days of the month, positioning us for greater efficiency and productivity in the months ahead.

"Starting this month, we will also begin providing greater visibility on the results of our unique power strategy by reporting our monthly cost of power, by facility, net of power credits. This past June showcased our power strategy in action, as Riot earned $6.2 million in power credits, reducing our net cost of power to an estimated 2.4c/kWh at the Rockdale Facility and 3.9c/kWh at the Corsicana Facility, inclusive of all applicable taxes, fees and adders. This realized, combined cost of power of 2.6c/kWh across both of our facilities ranks among the lowest in the industry and represents one of Riot's key competitive advantages."

Riot's Power Strategy Overview

Riot's power strategy is based on being a flexible consumer of power. The Company typically consumes power when it is low-cost and abundant, as opposed to residential consumers, who typically increase power usage during peak periods of demand. When prices are high or when the grid operator needs to balance demand, the Company can either power down to reduce power costs, or bid competitively to provide the grid operator with visibility into, and control over, Riot's power utilization. This control gives the grid operator the ability to either absorb excess power when supply is high or curtail Riot's operations to reduce demand when beneficial to the grid, and ultimately, to all consumers.

During the month of June, Riot continued its participation in ERCOT's Four Coincident Peak Program ("4CP"). The 4CP program is an opportunity for users of power to curtail their usage during periods of highest demand on the grid in each of the four summer months of the year. Riot curtailed operations in June during peak periods of demand within ERCOT and will continue to do so throughout the summer. These periods of curtailment as part of the 4CP program occur whenever total demand on the grid could reach its peak point for each month and does not depend on the current price for power, which fluctuates due to a variety of factors and may be lower or higher than anticipated.  As part of Riot's participation in this voluntary program the Company will have substantial savings on future transmission costs and is part of the Company's partnership-driven approach with the grid. 

Infrastructure Update

Riot is currently developing Phase 1 of the Company's second large-scale facility, the Corsicana Facility, which is expected to total 400 megawatts ("MW") of developed mining capacity upon completion of this initial phase. Once fully developed, the Corsicana Facility is expected to total 1 gigawatt (1,000 MWs) in total developed mining capacity.

In June, the remaining tanks and miners in Building A1 were energized, resulting in completion of the first 100 MW building in Corsicana. Additionally, during the month, Building A2 was nearly completed with nearly all immersion tanks and miners in the building now operational.

Development for the third building at Corsicana, Building B1, continued on schedule with the building structure now fully erected and concrete slab pouring in progress. Installation of immersion tanks has begun and will continue through July.

Estimated Hash Rate Growth    

Riot anticipates achieving a total self-mining hash rate capacity of 31 EH/s by the end of 2024.

As previously disclosed, in June 2023, Riot entered into a long-term master purchase agreement with MicroBT, which included an initial order of 33,280 immersion miners for the Corsicana Facility. Effective December 1, 2023, Riot executed a second order under the MicroBT master agreement for an additional 66,560 immersion miners, primarily for the Corsicana Facility. In February 2024, Riot entered into a third order with MicroBT, for 31,500 air-cooled miners for the Rockdale Facility. Approximately 17,000 miners in the third order are expected to replace underperforming machines currently operating in the facility, and the deployment of the remaining 14,500 miners will contribute additional hash rate capacity to our self-mining operations at the Rockdale Facility.

Collectively, the three purchase orders will add an anticipated 28 EH/s to Riot's self-mining capacity. Deployment of the miners intended for the Corsicana Facility has begun and is estimated to be completed by the second half of 2025. Deployment of the miners intended for the Rockdale Facility has begun and is expected to be completed in Q3 2024.

Upon full deployment in 2025, Riot anticipates a total self-mining hash rate capacity of 41 EH/s.

Conference Schedule:

• Bitcoin Nashville 2024 held in Nashville, TN on July 25^th – 27^th.

Human Resources Update

Riot is currently recruiting for positions across the Company. Join our team in building, expanding, and securing the Bitcoin network.   

Open positions are available at: https://www.riotplatforms.com/careers.    

About Riot Platforms, 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 operations in central Texas and electrical switchgear engineering and fabrication operations in Denver, Colorado.   

For more information, visit www.riotplatforms.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 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 Corsicana site expansion; our expected schedule of new miner deliveries; the impact of weather events on our operations and results; our ability to successfully deploy new miners; the variance in our mining pool rewards may negatively impact our results of Bitcoin production; megawatt ("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 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, 2023, 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.   

Investor Contact:   
Phil McPherson   
303-794-2000 ext. 110  
IR@Riot.Inc   

Media Contact:   
Alexis Brock   
303-794-2000 ext. 118   
PR@Riot.Inc   

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SOURCE Riot Platforms, Inc.