Riot Blockchain Announces July 2022 Production and Operations Updates | News

Riot Blockchain Announces July 2022 Production and Operations Updates |  News
Riot Blockchain Announces July 2022 Production and Operations Updates |  News

Castle Rock, CO, Aug. 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 unaudited production and operations updates for July 2022.

Updates for the production and operation of Bitcoin

  • In July 2022, Riot produced 318 BTC, a decrease of approximately 28% compared to the production of 443 BTC in July 2021, while significantly reducing the total power costs through the efficient use of its proprietary power strategy.
  • Riot earned an estimated $9.5 million in power credits as a result of throttling activity, which will be credited against power bills; $9.5 million in power credits equals approximately 439 BTC, calculated using the July 2022 average BTC price of $21,634.
  • As of July 31, 2022, Riot had 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 hashrate capacity has been temporarily impacted by the ongoing relocation of part of the company’s mining fleet from a third-party hosting facility to Riot’s Whinstone facility, which is expected to ultimately further reduce production costs.
  • Riot’s Q2 2022 financial report is scheduled to be released after the market closes on 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 access to power at scale under its long-term fixed-rate power contracts, giving it a unique ability to support ERCOT and free up capacity back to the grid when power demand in Texas is high,” said Jason Les, CEO of Riot.

“As energy demand in ERCOT hit all-time highs this past month, the company voluntarily reduced energy use to ensure more power would be available in Texas. Riot reduced a total of 11,717 megawatt hours in July, enough to power 13,121 average homes for one month. Reduction of 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 feeding power back into the ERCOT grid during periods of high demand, the company estimates that power credits and other benefits from curtailment activities amounted to an estimated 9 $.5 million, significantly offsetting the reduction in BTC mined. When applied to expected 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 .”

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Mining and shipment update

During the month of July, the company terminated its hosting agreement with Coinmint LLC (“Coinmint”) and sent all 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 ongoing in the form of an exchange agreement with another Bitcoin mining company and the shipping of the rest of the previously deployed miners at Coinmint. While this redeployment of miners is ongoing, approximately 12,146 miners are currently offline and are therefore temporarily not counted in the deployed fleet. As a result of this relocation of miners, the company expects to further reduce production costs through lower power costs and by eliminating all third-party hosting fees on its hosted mining fleet.

Since the last monthly update, Riot has 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. In addition, shipments of 9,316 S19j Pros have been initiated from 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 approx. 4.9 EH/s.

Infrastructure update

In July, Riot’s Whinstone facility made significant framework and deployment progress toward the company’s 400 megawatt (“MW”) digital infrastructure expansion project.

In buildings D and E, Riot’s two air-cooled buildings, interior structures are nearing completion. Engineers have begun installing Riot’s proprietary air cooling racks 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.

Build F, Riot’s first immersion-cooled build, was completed and operational from May 2022. Build G is progressing with the installation of dry cooler and water pump systems and the commissioning of the intermediate voltage switch, and the deployment of miners continues.

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 pleased to share that earthworks and development of the first phase of access roads has begun at Riot’s 265-acre Corsicana facility.

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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 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 central role for Riot in driving research that will continue to impact the Bitcoin community from an educational and informational perspective.

Investor Relations

The company plans to release its second quarter financial report after the market closes on August 9, 2022.

About Riot Blockchain, Inc.

Riot Blockchain’s (NASDAQ: RIOT) vision is to be the world’s leading Bitcoin-powered infrastructure platform.

Our mission is to positively influence the sectors, networks and communities we touch. We believe that the combination of an innovative spirit and a strong community partnership allows the company to achieve best-in-class execution and create successful results.

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 and fabrication operations in Denver, Colorado.

For more information, visit www.RiotBlockchain.com.

Safe harbour

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 financial conditions. Such statements are subject to 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 statements statements. forward-looking statements. Words such as “anticipate”, “believe”, “plan”, “expect”, “intend”, “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, goals, 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 expansion of the Navarro site; our expected schedule for deliveries of new miners; our ability to successfully deploy new miners; MW capacity under development; we may not be able to realize the anticipated benefits of 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 complete than expected; 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 that they believe could cause actual results to differ materially from those expressed or implied by such forward-looking statements in this press release can be found in the Company’s filings with the US Securities and Exchange Commission (“SEC”). , including the risks, uncertainties and other factors discussed under the “Risk Factors” and “Caution Regarding Forward-Looking Statements” sections 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 make to 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 such forward-looking statements to reflect events or circumstances that subsequently occur or become known to the Company. with, with the exception of what is required by law. Persons reading this press release are cautioned not to place undue reliance on such forward-looking statements.

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Attachments

Alexis Brock Riot Blockchain, Inc. 512-940-6014 [email protected] Phil McPherson Riot Blockchain, Inc. 303-794-2000 ext. 110 [email protected]

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