Riot Blockchain Announces Financial Highlights for the Fourth-Quarter & Full-Year Ended 2020 and Full-Year 2020 Operating Highlights and Financial Results

Castle Rock, CO, March 31, 2021 (GLOBE NEWSWIRE) -- Riot Blockchain, Inc. (NASDAQ: RIOT) ("Riot”, “Riot Blockchain” or the “Company"), one of the leading Nasdaq-listed bitcoin mining companies in the United States, announced today financial highlights and financial results, for the fourth quarter and full year ended December 31, 2020.

• Achieved profitability on a GAAP basis in the fourth quarter of 2020
• Fourth-quarter mining revenues increased 116%, with corresponding fourth-quarter G&A expenses increasing by only 14%, on a sequential quarter-over-quarter basis
• Hashing capacity increased by 460% on a year-over-year basis
• Bitcoin held on balance sheet increased by 110% on a year-over-year basis
• Working capital increased by over 2,000% to $233.9 million on a year-over-year basis

“2020 was a transformative year for Riot and we believe that the Company’s prospects have never been brighter,” said Jason Les, Riot’s CEO.  “Our strategic decision to solely focus on bitcoin mining in early 2020 allowed the Company to exit 2020 as a public company leader as measured by total hash rate.  We are pleased to have invested into continuing our deployed hash rate growth, allowing us to capitalize on the extraordinary current opportunities in bitcoin mining.  In 2021, we are amplifying our focus on initiatives that will drive further growth for Riot, including increasing the US-based share of the bitcoin mining landscape.”

Fourth Quarter 2020 Financial Highlights

• Achieved profitability during the 2020 fourth quarter, with $3.9 million in net income on a GAAP basis, as compared to a $(3.4) million net loss during the 2019 fourth quarter and as compared to a $(1.7) million loss for the third quarter of 2020.
• Mining revenues increased by 116% on a sequential quarter-over-quarter basis, to $5.2 million in the fourth quarter of 2020 as compared to $2.4 million for the third quarter of 2020.
• Comparatively, SG&A increased by only 14% on a sequential quarter-over-quarter basis, to $2.3 million in the fourth quarter of 2020 as compared to $2.0 million for the third quarter of 2020.
• Total newly mined bitcoin increased by 36% on a sequential quarter-over-quarter basis, with 303 bitcoin mined in the fourth quarter of 2020, as compared to 222 bitcoin mined in the third quarter of 2020.  This was predominantly driven by the increase in the Company’s hash rate combined with network hash rate and adjustments in network difficulty.
• The average bitcoin price used to calculate Riot’s fourth quarter 2020 revenues was approximately $18,900.

Fiscal Year 2020 Financial Highlights