CASTLE ROCK, Colo.,
Aug. 13, 2020 /PRNewswire/
-- Riot Blockchain, Inc. (NASDAQ: RIOT) ("Riot," "Riot
Blockchain" or the "Company"), has received 1,040 S19 95TH miners,
the second of three orders cumulatively totaling 3,040, S19 and S19
Pro Antminers from BitmainTech PTE. LTD. ("Bitmain"), at Coinmint's
Massena, New York facility.
Deployment of these 1,040 new S19 next generation miners has
commenced and is expected to be completed by Monday, August 17, 2020. After
deploying these 1,040 S19 miners, the Company expects to
increase its hash rate by 28% to 456 PH/s.
Chairman's Statement and Commentary
"The second quarter of 2020 marked a pivotal milestone for Riot
Blockchain, as it represented the successful conclusion of the
initial phase of the Company's transformation" said Remo Mancini, Independent Chairman of the Board
of Directors of Riot Blockchain. "The focus of this initial
phase was on several important objectives: (1) to systematically
reduce the Company's risk profile, (2) strategically position Riot
by enhancing the competitiveness of our mining operation and (3)
restructure management and agreements with service-providers to the
benefit of the Company. We are pleased to report that Riot
has successfully executed on each of these objectives."
Risk profile
The Company believes the termination of the SEC investigation as
announced in the first quarter of 2020 was an important step to
improve the Company's regulatory profile. Secondly, Riot
achieved a marked improvement in its financial profile in the
second quarter, as the Company recently reported, it ended the
quarter with a significant positive net working capital balance of
$15.9 million. As further announced,
subsequent to June 30, 2020, Riot
received gross proceeds of approximately $29.7 million via the Company's ATM offering,
further strengthening its net working capital balance.
Additionally, the Company currently holds over 1,000 bitcoin
yielded from its mining operation. Riot continues to remain free of
long-term debt.
Mining competitiveness
In the second quarter of 2020, Riot strengthened the
competitiveness of its mining operation by reducing its operating
overhead after relocating Riot's mining operation from Oklahoma City to Coinmint's lower-cost
facility in Massena, New
York. Furthermore, as compared to its operations in 2019,
Riot's entire mining operation has been completely upgraded to the
next generation of mining equipment. Riot's current mining
operation consists of 4,000 Bitmain S17 Pro Antminers in addition
to the 2,040 next-generation S19 and S19 Pro Antminers which have
recently been deployed or are being deployed. An additional 1,000
S19 Pros are expected to be delivered and deployed in the fourth
quarter of 2020.
With the recent receipt and deployment of the 2,040 S19 and S19
Pro Antminers, Riot's total operational hashing capacity has nearly
doubled from that on June 30, 2020 to
approximately 456 PH/s.
With the full 7,040 next generation miners expected to be
deployed in the fourth quarter of 2020, Riot's total hash rate
capacity is estimated to be approximately 566 PH/s. This
represents a 129% increase over its reported hash rate capacity of
247 PH/s in the first quarter of 2020.
Riot's Second Phase
"Riot has commenced the second phase of its strategic
transformation" continued Mr. Mancini. "In the second phase,
our goal is to drive the Company forward to become one of the
largest and most efficient bitcoin miners in North America. We are believers in the bitcoin
opportunity and our continued efforts aimed at growing our mining
operation demonstrates our commitment to its
network."
By early 2021, Riot anticipates exceeding 1 EH/s of hashing
power. To the Company's knowledge, this will position Riot as one
of the largest publicly traded bitcoin miners as measured by total
hashing power. In addition, Riot is continuing to assess the
bitcoin landscape with the assistance of XMS Capital to evaluate
opportunities to further increase shareholder value.
About Riot Blockchain
Riot Blockchain (NASDAQ: RIOT) focuses on cryptocurrency mining
of bitcoin. The Company is expanding and upgrading its mining
operations by securing the most energy efficient miners currently
available. Riot also holds certain non-controlling investments in
blockchain technology companies. Riot is headquartered in
Castle Rock, Colorado, and the
Company's primary mining facility was recently relocated to upstate
New York, under a co-location
agreement with Coinmint. For more information, visit
www.RiotBlockchain.com.
Safe Harbor
The information provided in this press release may include
forward-looking statements relating to future events or the future
financial performance of the Company. 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 are based upon current
expectations of the Company and involve assumptions that may never
materialize or may prove to be incorrect. Actual results and the
timing of events could differ materially from those anticipated in
such forward-looking statements as a result of various risks and
uncertainties. Detailed information regarding factors that may
cause actual results to differ materially from the results
expressed or implied by statements in this press release relating
to the Company may be found in the Company's periodic filings with
the Securities and Exchange Commission, including the factors
described in the sections entitled "Risk Factors," copies of which
may be obtained from the SEC's website at www.sec.gov. The Company
does not undertake any obligation to update forward-looking
statements contained in this press release.
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SOURCE Riot Blockchain, Inc.