Riot Blockchain Announces Financial Highlights for the Fourth-Quarter & Full-Year Ended 2020 and Full-Year 2020 Operating Highlights and Financial Results - Seite 2

• Working capital significantly increased to $233.9 million from $9.3 million as of December 31, 2019. 
• Total stockholder’s equity significantly increased to $277.1 million compared to $26.2 million balance as of December 31, 2019.
• Demonstrated significant positive operating leverage, increasing total mining revenues by 78% on a year-over-year basis to $12 million in 2020, as compared to $6.7 million in 2019, while increasing total mining costs by only 3% on a year-over-year basis to $6.3 million in 2020, as compared to $6.1 million in 2019. 
• More than doubled the number of bitcoin owned on the Company’s balance sheet, ending with 1,078 bitcoin as of December 31, 2020, compared to 514 as of December 31, 2019.

Fiscal Year 2020 Operational Highlights

• Invested in 33,646 Bitmain S19, S19 Pro and S19j Pro Antminers which, when fully installed by the fourth quarter of 2021, is expected to achieve an estimated aggregate bitcoin mining hash rate capacity of 4.0 EH/s.
• Increased deployed hash rate capacity to 566 PH/s, a 460% increase from 101 PH/s as of December 31, 2019.
• Re-located 100% of the Company’s mining operations from Oklahoma City, OK to Coinmint LLC’s Massena, New York colocation facility to decrease costs of production.
• Bolstered the Company’s governance structures with the addition of Hubert Marleau to the Board of Directors as an independent director.

Fiscal Year 2020 Financial Results

Total mining revenue in 2020 was $12 million, as compared to $6.7 million in 2019, an increase of 78% year-over-year. 

Gross profit, which is computed as mining revenues in excess of cost of revenues (excluding depreciation and amortization), was $5.7 million (48% of total mining revenues), as compared to $0.6 million (10% of total mining revenue) in 2019.   The increase in revenue and gross profit were due to the increase in the Company’s hash rate in addition to an increase in the price of bitcoin during 2020, offset by the Bitcoin halving event in 2020. 

Selling, general, and administrative (SG&A) expenses in 2020 increased to $10.2 million from $9.1 million in 2019, an increase of 12% year-over-year.  The increase in SG&A was primarily due to an increase in consulting fees, legal fees, audit and related professional fees. 

Net loss for 2020 was $12.7 million, or $(0.30) per share, compared to a net loss of $20.03 million, or $(1.02) per share in 2019.  The net loss included $12.0 million in non-cash items consisting primarily of the impairment of our investment 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 gain on sale of cryptocurrency discussed below and a net of other items of $0.1 million. The net loss for the year ended December 31, 2020 also included a $5.2 million gain on the sale/exchange of cryptocurrencies.