Riot Blockchain (RIOT) produced 374 BTC in August

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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 August 2022.

Updates for the production and operation of Bitcoin

• In August 2022, Riot produced 374 BTC, a decrease of approximately 15% compared to the production of 441 BTC in August 2021, while significantly reducing the total power costs through the efficient use of its proprietary power strategy.
• Riot earned an estimated $3.0 million in power credits as a result of throttling activity, which will be credited against power bills; $3.0 million in power credits is equivalent to approximately 136 BTC, calculated using the average daily BTC closing price in August 2022 of $22,097.
• As of August 31, 2022, Riot had approximately 6,720 BTC, all produced by the company’s self-mining operations.
• In August 2022, Riot sold 350 BTC, generating net proceeds of approximately $7.7 million.
• Riot currently has a deployed fleet of 46,658 miners, with a hash rate capacity of 4.8 exahash per second (“EH/s”).

“August was another successful month for Riot as we continued to make significant progress on our Rockdale facility expansion, including deploying an additional 6,347 S19j Pros in our immersion-cooled buildings, and producing Bitcoin while further contributing to grid stability in Texas through continued execution of our proprietary power strategy,” said Riot CEO Jason Les. “The significant benefits received in August from this strategy reinforce our already industry-leading position as a low-cost manufacturer, and further strengthen our solid financial position, providing us with ample resources to fund our compelling growth opportunities as we drive Riot toward our vision of becoming the world leader Bitcoin Powered Platform.”

Mining and shipment update

Since the last monthly update, Riot has received an additional 9,326 new S19j Pros and deployed 6,347 S19j Pros in its immersion-cooled buildings, with an additional 6,336 miners staged for deployment. In addition, shipments of 10,193 S19j Pros have been initiated from Bitmain Technologies Limited (“Bitmain”) and are expected to be received during September 2022. Upon deployment of the staged miners, the company expects to have a total of 52,994 miners deployed with a hash rate capacity of about. 5.4 EH/s.

Infrastructure update

Throughout the month of August, Riot’s engineering and construction teams worked to advance the digital infrastructure expansion project at Riot’s Rockdale facility.

Interior construction is nearing completion in buildings D and E, Riot’s two newest air-cooled buildings. In Building D, engineers are working to complete the installation of Riot and ESS Metron’s custom-designed air cooling rack system. Louvers that provide and maintain the correct air flow in the structure are installed. Testing of the medium voltage transformers has been completed in building E.

Building F, Riot’s first immersion cooling building, continues to operate successfully. The company’s second immersion cooling building, Building G, water cooling system is now 95% complete as additional dry coolers and water pumps have been installed. Miner deployment continues in Building G, and several miners have been placed and are awaiting deployment.

Estimated Hash Rate Growth

By 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 excluding 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 miner model. In addition to the company’s self-mining operations, Riot hosts approximately 200 MW of institutional Bitcoin mining customers.

Human resources

The Company is pleased to announce the appointment of Frank Durant as Vice President of Field Operations at Ferrie Franzmann Industries, LLC (d/b/a ESS Metron) (“ESS Metron”), a wholly owned subsidiary of Riot. Mr. Durant’s expertise is in the areas of security, finance, grid technology, renewable energy and system operations. Mr. Durant’s reputation is well developed and has been recognized throughout his career as an energy industry leader. The company believes his knowledge and extensive experience will contribute to further growth and expansion of new service opportunities at ESS Metron.

Conference schedule

Riot will be presenting at the following upcoming conferences:

• HC Wainwright & Co. Global Investment Conference held in New York, NY September 12-14.
• Fidelity Investment Conference held in Boston, MA on September 14th.
• The BTIG 2nd Annual Digital Assets Conference held virtually on September 19 – 20
• TXU Energy Summit held in Arlington, TX on September 27th.
• Crypto Mining Day hosted by Bank of America, held virtually on September 29.
• B. Riley Securities 2nd Annual Crypto Conference held virtually on September 29th.
• YTexas Summit held in Arlington, TX on September 30th.