Riot Blockchain, Inc. (NASDAQ: RIOT) (“Riot,” “Riot Blockchain” or “the Company”), an industry leader in Bitcoin (“BTC”) mining and hosting, announces production and operations update for March 2022, status of miner shipments and deployment, and updates on the 400 megawatt (“MW”) infrastructure expansion at the Company’s Whinstone US, Inc., (“Whinstone”) facility in Rockdale, Texas (the “Whinstone Facility”).

“I am proud of the Riot team for producing a record amount of Bitcoin during the month of March,” said Jason Les, CEO of Riot. “These results demonstrate the advantages of employing a vertically integrated strategy, which provide the Company with more control over miner deployment and the ability to implement engineering solutions in real-time, leading to improved operational and financial efficiencies.”

Production Updates

• In March 2022, Riot produced 511 BTC, an increase of approximately 176%, as compared to March 2021 production of 185 BTC.
• Riot currently has a deployed fleet of approximately 42,919 miners, with a hash rate capacity of 4.3 exahash per second (“EH/s”).

Riot intends to continue providing monthly operational updates and unaudited production results for the foreseeable future or until otherwise disclosed. These updates are intended to keep shareholders informed of the Company’s progress regarding the execution of the previously announced growth in Riot’s hash rate and to keep investors apprised of the Company’s development of its Bitcoin mining infrastructure, which the Company believes is critical to de-risking its future growth plans.

Bitcoin Treasury Management Update

• As of March 31, 2022, Riot held approximately 6,062 BTC, all produced by the Company’s self-mining operations.
• In March 2022, Riot sold 200 Bitcoin at an average sales price of approximately $47,090. Proceeds from the sale equated to approximately $9.4 million.
• Riot is monitoring its balance sheet on an ongoing basis, evaluating the level of Bitcoin retained from monthly production in consideration of operational and expansion cash requirements. The Company continues to hold a long-term view on its Bitcoin holdings and believes it is in the best interest of shareholders to have strong Bitcoin holdings on its balance sheet.

Mining Deployment and Shipment Update

Since its last monthly update, Riot received an additional 1,080 new S19j Pros, deployed approximately 4,440 S19j Pros in its immersion-cooled building, pictured above, along with 5,030 additional miners staged for deployment. Additionally, 5,430 S19j Pros have been shipped from Bitmain and are expected to be received during April 2022. Once the staged miners and those from the April delivery are deployed, the Company expects to have a total of 53,379 miners deployed with a hash rate capacity of approximately 5.4 EH/s.

Infrastructure Update

Throughout the month of March, Riot’s digital infrastructure expansion project at the Whinstone Facility has continued to make progress. Buildings D and E, both employing air-cooled technology, are nearing completion. The electrical installation process in both buildings has begun; the louvres have been placed in D and the roof installment has begun in E.

Buildings F and G, both employing the Company’s state-of-the-art immersion-cooling technology, have continued progress with miners being deployed in Building F, and with electrical equipment installation nearing completion.

Building X, Riot’s Employee Training and Health & Safety Center, received wall panels and insulation, reaching approximately 80% completion.

Overall site conditions and ancillary projects pertaining to watershed management, landscaping and soil retention continue to be thoughtfully designed and monitored to ensure the efficacy and longevity of the Company’s current and future operations.

Estimated Hash Rate Growth                     

By January 2023, Riot anticipates a total self-mining hash rate capacity of 12.8 EH/s, assuming full deployment of approximately 120,150 Antminer ASICs, but excluding any potential expected incremental productivity gains from the Company’s utilization of 200 MW of immersion-cooling infrastructure. Approximately 97% of the Company’s self-mining fleet will consist of the latest generation S19 series miner model. Upon full deployment of all currently contracted miners, the Company’s total self-mining fleet will consume approximately 370 MW of energy. In addition to the Company’s self-mining operations, Riot hosts approximately 200 MW of institutional Bitcoin mining clients.

Human Resources

The Company is proud to announce further growth within its corporate office, including the hiring of eight new employees within the following departments: Human Resources, IT, Legal, Communications, and Finance.

Additionally, Riot is pleased to share the hiring and promotion of several lead team members at its Whinstone Facility, the largest employer in Milam County, Texas, in the following departments: Data Center Technicians, Miner Maintenance Technicians, EPC Technicians, and Equipment Maintenance Technicians.

Conference Schedule

Riot leadership is speaking at the Bitcoin 2022 conference held on April 5 to 9 in Miami, and the Cowen Bitcoin Mining Summit, a virtual event to be held on April 12.

About Riot Blockchain, Inc.

Riot Blockchain (NASDAQ: RIOT) focuses on mining Bitcoin, and through Whinstone, its subsidiary, hosting Bitcoin mining equipment for institutional clients. The Company is expanding and upgrading its mining operations through industrial-scale infrastructure development and latest-generation miner procurement. Through Riot’s subsidiary ESS Metron, the Company engineers and manufacturers electrical equipment solutions for Bitcoin mining and other industries. The Company’s headquarters is in Castle Rock, Colorado, and the Whinstone Facility operates in Rockdale, Texas. Riot also has mining equipment operating in upstate New York under a co-location hosting agreement with Coinmint, LLC. For more information, visit www.RiotBlockchain.com.

Safe Harbor

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 economic conditions. Such statements are made in reliance on 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 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 may include, but are not limited to, statements about the benefits of acquisitions, including financial and operating results, and the Company’s plans, objectives, 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); our expected schedule of new miner deliveries; our ability to successfully deploy new miners; MW capacity under development; we may not be able to realize the anticipated benefits from 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 accomplish than anticipated; 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 other factors that may cause actual results to differ materially from those expressed or implied by statements in this press release may be found in the Company’s filings with the U.S. Securities and Exchange Commission (the “SEC”), including in the sections entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, and our other filings with the SEC, copies of which may be obtained from the SEC’s website at 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 any forward-looking statements to reflect events or circumstances that subsequently occur, or of which the Company hereafter becomes aware, except as required by law. Persons reading this press release are cautioned not to rely on forward-looking statements.