Riot Blockchain (RIOT) announces production and operational updates from November 2022

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

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

“To ensure more predictable results going forward, Riot will be transitioning to another mining pool that offers a more consistent reward mechanism so that Riot will fully benefit from our rapidly growing hashrate capacity as we work toward our goal of reaching 12.5 EH /say first quarter 2023.”

Mining and shipment update

During the month of November, Riot received 10,512 new S19 series miners, increasing the deployed fleet by 6,912 S19 series miners, with approximately 6,912 miners set up 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. In addition, shipments of 5019 S19 series miners have begun and are expected to be received during December 2022.

Infrastructure update

Riot’s construction and engineering team made significant progress in November, with all exterior structures at the Rockdale facility now complete.

In Building D, the company’s construction team has completed the installation of the air cooling rack system, while the electrical team continues to test low-voltage cables. In both Buildings D and E, Riot has begun the first installation of interior filter walls that maintain cool interior temperatures. In Building E, the company completed the installation of underground water systems to support the building’s evaporative cooling walls, while the engineering team continued installation of the air cooling rack system.

Estimated Hash Rate Growth

During Q1 2023, Riot expects a total self-mining rate capacity of 12.5 EH/s, assuming full deployment of approximately 115,450 Antminer ASICs, but excludes any potential incremental productivity gains from the company’s utilization of 200 MW of infrastructure immersion cooling. Pretty much the company’s entire self-extraction 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 customers.

Human resources

Riot is currently recruiting for positions in the following departments: Accounting, Finance, Legal and Public Policy. Join our team to build, grow and secure the Bitcoin network. Vacancies are available at: https://www.riotblockchain.com/careers.

Investor Relations

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