CASTLE ROCK, Colo.,
Aug. 26, 2020 /PRNewswire/
-- Riot Blockchain, Inc. (NASDAQ: RIOT) ("Riot", "Riot
Blockchain" or the "Company"), continues its commitment to
bitcoin mining with the new purchase of 5,100 next generation
Bitmain S19 Pro Antminers (110 TH) for USD $11.2 million from BitmainTech PTE. LTD.
("Bitmain"), scheduled for receipt and deployment starting in
February 2021.
In line with Riot's goal of miner expansion, and together with
Bitmain's increased production capacity during early 2021, this
purchase and the recently disclosed order of 8,000 S19 Pros,
results in 13,100 miners scheduled to be received and deployed in
the first half of 2021. As a result of this order size, the Company
was able to secure advantageous pricing per unit on both this order
and the recent order of 8,000 S19 Pro miners. The additional volume
discount provided by Bitmain reduced the previously announced
purchase price for the 8,000 S19 Pros from $17.7 million to $17.5
million.
As far as the Company is aware, no other publicly traded bitcoin
mining company has disclosed a hashing capacity exceeding 2 EH/s.
Riot anticipates that based upon current factors, Riot would
achieve positive cash flow in late 2020 when the Company's total
hashing capacity is expected to reach 566 PH/s. With the full
deployment of these 13,100 S19 Pros, Riot is expected to more than
triple that hash rate capacity by the end of June 2021.
"Riot has made a commitment to being a global player in the
bitcoin mining sector," said Remo
Mancini, Independent Chairman of Riot Blockchain. "We are
believers in bitcoin's opportunity to be a disruptive force in the
traditional finance and currency systems. Riot is making strides in
positioning itself to be a part of that future, and this purchase
is a hallmark of those efforts."
Hash Rate Summary
At full deployment of 20,140 next-generation miners, Riot
estimates its total operational hash rate capacity will be 2.007
EH/s (2,007 PH/s) with the Company's aggregate mining efficiency of
32.65±% 5 joules per terahash (J/TH), consuming 64 MW of
power. Riot expects to then have a fully deployed fleet
totaling approximately 20,140 miners, the vast majority being the
next-generation S19 Pro Antminer from Bitmain.
All of the new miner purchases continue to be funded using
available working capital. Riot continues to maintain no
long-term debt. The Company is continuing to assess the bitcoin
landscape with the assistance of XMS Capital to evaluate
opportunities to further increase shareholder value.
Co-location Relationship
The Company's on-hand fleet of miners are deployed at Coinmint
LLC's Massena, NY facility.
Coinmint is a valued partner of Riot as both companies are
diligently working to increase North
America's presence in the bitcoin mining landscape. The
Coinmint facility draws a significant portion of its energy from
hydroelectric sources and the annual average power generation cost
has been approximately 1.5 cents per
kWh. A majority of bitcoin mining currently takes place
overseas, however, recent industry announcements reflect a
potential shift in network hash rate to North America. Riot views increasing the North
American aggregate hash rate of strategic importance.
"Our partnership with Riot has allowed us to add a significant
number of new tech jobs in the region," said Ashton Soniat, CEO of Coinmint. "Coinmint
currently operates the largest and lowest-cost cryptocurrency
mining facility in the U.S., and we are continuing to expand to
meet the needs of our institutional partners like Riot."
About Coinmint, LLC
Coinmint operates a digital currency data center in Massena, New York. At 435MW of transformer
capacity at its Massena complex,
the facility's capacity is three times larger than any other known
operating digital currency data center in North America. The facility has been
operational since May 2018. Given the
abundance of hydroelectric and wind power generation in the area,
the experience of its management team in wholesale electricity
markets, and the large capacity, Coinmint has a material electrical
economic advantage over other operations. For more information,
visit www.coinmint.one.
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
hosting 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.