Fort Rock, CO, March 31, 2021 (GLOBE NEWSWIRE) — Riot Blockchain, Inc. (NASDAQ: RIOT) (“Riot”, “Riot Blockchain” or the “Firm”), one of many main Nasdaq-listed bitcoin mining corporations in america, introduced immediately monetary highlights and monetary outcomes, for the fourth quarter and full yr ended December 31, 2020.
- Achieved profitability on a GAAP foundation within the fourth quarter of 2020
- Fourth-quarter mining revenues elevated 116%, with corresponding fourth-quarter G&A bills growing by solely 14%, on a sequential quarter-over-quarter foundation
- Hashing capability elevated by 460% on a year-over-year foundation
- Bitcoin held on steadiness sheet elevated by 110% on a year-over-year foundation
- Working capital elevated by over 2,000% to $233.9 million on a year-over-year foundation
“2020 was a transformative yr for Riot and we consider that the Firm’s prospects have by no means been brighter,” stated Jason Les, Riot’s CEO. “Our strategic choice to solely concentrate on bitcoin mining in early 2020 allowed the Firm to exit 2020 as a public firm chief as measured by whole hash fee. We’re happy to have invested into persevering with our deployed hash fee progress, permitting us to capitalize on the extraordinary present alternatives in bitcoin mining. In 2021, we’re amplifying our concentrate on initiatives that can drive additional progress for Riot, together with growing the US-based share of the bitcoin mining panorama.”
Fourth Quarter 2020 Monetary Highlights
- Achieved profitability throughout the 2020 fourth quarter, with $3.9 million in internet revenue on a GAAP foundation, as in comparison with a $(3.4) million internet loss throughout the 2019 fourth quarter and as in comparison with a $(1.7) million loss for the third quarter of 2020.
- Mining revenues elevated by 116% on a sequential quarter-over-quarter foundation, to $5.2 million within the fourth quarter of 2020 as in comparison with $2.4 million for the third quarter of 2020.
- Comparatively, SG&A elevated by solely 14% on a sequential quarter-over-quarter foundation, to $2.3 million within the fourth quarter of 2020 as in comparison with $2.0 million for the third quarter of 2020.
- Complete newly mined bitcoin elevated by 36% on a sequential quarter-over-quarter foundation, with 303 bitcoin mined within the fourth quarter of 2020, as in comparison with 222 bitcoin mined within the third quarter of 2020. This was predominantly pushed by the rise within the Firm’s hash fee mixed with community hash fee and changes in community issue.
- The typical bitcoin worth used to calculate Riot’s fourth quarter 2020 revenues was roughly $18,900.
Fiscal Yr 2020 Monetary Highlights
- Working capital considerably elevated to $233.9 million from $9.3 million as of December 31, 2019.
- Complete stockholder’s fairness considerably elevated to $277.1 million in comparison with $26.2 million steadiness as of December 31, 2019.
- Demonstrated vital constructive working leverage, growing whole mining revenues by 78% on a year-over-year foundation to $12 million in 2020, as in comparison with $6.7 million in 2019, whereas growing whole mining prices by solely 3% on a year-over-year foundation to $6.3 million in 2020, as in comparison with $6.1 million in 2019.
- Greater than doubled the variety of bitcoin owned on the Firm’s steadiness sheet, ending with 1,078 bitcoin as of December 31, 2020, in comparison with 514 as of December 31, 2019.
Fiscal Yr 2020 Operational Highlights
- Invested in 33,646 Bitmain S19, S19 Professional and S19j Professional Antminers which, when absolutely put in by the fourth quarter of 2021, is predicted to attain an estimated combination bitcoin mining hash fee capability of 4.0 EH/s.
- Elevated deployed hash fee capability to 566 PH/s, a 460% enhance from 101 PH/s as of December 31, 2019.
- Re-located 100% of the Firm’s mining operations from Oklahoma Metropolis, OK to Coinmint LLC’s Massena, New York colocation facility to lower prices of manufacturing.
- Bolstered the Firm’s governance buildings with the addition of Hubert Marleau to the Board of Administrators as an impartial director.
Fiscal Yr 2020 Monetary Outcomes
Complete mining income in 2020 was $12 million, as in comparison with $6.7 million in 2019, a rise of 78% year-over-year.
Gross revenue, which is computed as mining revenues in extra of price of revenues (excluding depreciation and amortization), was $5.7 million (48% of whole mining revenues), as in comparison with $0.6 million (10% of whole mining income) in 2019. The rise in income and gross revenue have been as a result of enhance within the Firm’s hash fee along with a rise within the worth of bitcoin throughout 2020, offset by the Bitcoin halving occasion in 2020.
Promoting, normal, and administrative (SG&A) bills in 2020 elevated to $10.2 million from $9.1 million in 2019, a rise of 12% year-over-year. The rise in SG&A was primarily as a consequence of a rise in consulting charges, authorized charges, audit and associated skilled charges.
Web loss for 2020 was $12.7 million, or $(0.30) per share, in comparison with a internet lack of $20.03 million, or $(1.02) per share in 2019. The web loss included $12.0 million in non-cash gadgets consisting primarily of the impairment of our funding in Coinsquare of $9.4 million, depreciation and amortization (D&A) of $4.5 million and stock-based compensation of $3.4 million, offset by the achieve on sale of cryptocurrency mentioned under and a internet of different gadgets of $0.1 million. The web loss for the yr ended December 31, 2020 additionally included a $5.2 million achieve on the sale/alternate of cryptocurrencies.
At December 31, 2020, the Firm had $235 million in money and cryptocurrencies, as in comparison with $11.3 million at December 31, 2019.
2021 Strategic Priorities
- Efficiently execute on disclosed miner buy orders of 35,146 Bitmain S19 technology Antminers. To-date, 6,703 Bitmain S19 Professional Antminers have been deployed throughout 2021 and Riot’s present whole hash fee capability is roughly 1.3 EH/s using 43 MW of energy with an effectivity of 32.4 joules per terahash (J/TH).
- Monitor further alternatives for miner procurement and hash fee progress.
- Advance upon the Firm’s strategic R&D alliance and eight MW pilot challenge with Enigma Digital Property AG and Lancium LLC to check the most recent technology bitcoin miners mixed with using revolutionary immersion cooling applied sciences.
- Consider further initiatives to lower prices of bitcoin manufacturing.
About Riot Blockchain
Riot Blockchain Inc. (NASDAQ: RIOT) focuses on cryptocurrency mining of bitcoin. The Firm is increasing and upgrading its mining operations by securing probably the most vitality environment friendly miners at the moment accessible. Riot additionally holds sure non-controlling investments in blockchain expertise corporations. Riot is headquartered in Fort Rock, Colorado, and the Firm’s mining facility operates out of upstate New York, underneath a co-location internet hosting settlement with Coinmint. For extra info, go to www.RiotBlockchain.com.
The data offered on this press launch might embrace forward-looking statements regarding future occasions or the longer term monetary efficiency of the Firm. As a result of such statements are topic to dangers and uncertainties, precise outcomes might differ materially from these expressed or implied by such forward-looking statements. Phrases equivalent to “anticipates,” “believes,” “plans,” “expects,” “intends,” “will,” “potential,” “hope” and comparable expressions are supposed to establish forward-looking statements. These forward-looking statements are based mostly upon present expectations of the Firm and contain assumptions that will by no means materialize or might show to be incorrect. Precise outcomes and the timing of occasions may differ materially from these anticipated in such forward-looking statements on account of varied dangers and uncertainties. Detailed info concerning components that will trigger precise outcomes to vary materially from the outcomes expressed or implied by statements on this press launch regarding the Firm could also be discovered within the Firm’s periodic filings with the U.S. Securities and Alternate Fee (the “SEC”), together with the components described within the sections entitled “Danger Components,” copies of which can be obtained from the SEC’s web site at www.sec.gov. The Firm doesn’t undertake any obligation to replace forward-looking statements contained on this press launch.