Riot Earns Record 3,812 BTC and $213.2 Million in Total Revenue in 2021
CASTLE ROCK, Colo., March 16, 2022 (GLOBE NEWSWIRE) -- Riot Blockchain, Inc. (NASDAQ: RIOT) (“Riot,” “Riot Blockchain” or “the Company”), an industry leader in Bitcoin (“BTC”) mining and hosting, announced today financial highlights and financial results, for the full year ended December 31, 2021. The audited financial statements are available on Riot’s website and here.
Increased 2021 total revenue by 1,665% to $213.2 million, compared to $12.1 million in 2020.
Reported a net loss of $7.9 million in 2021, as compared to a net loss of $12.7 million in 2020.
Net loss for the fiscal year 2021 was significantly impacted by non-cash stock-based compensation expense of $68.5 million and a non-cash, unrealized loss of $36.5 million on impairment of cryptocurrencies.
Produced a Company record Adjusted Non-GAAP EBITDA of $82.4 million in 2021, compared to $(6.3) million in Non-GAAP Adjusted EBITDA in 2020. See attachment for supplemental information of Non-U.S. GAAP Measures of Financial Performance.
Increased hashing capacity by 444% to 3.1 EH/s as of December 31, 2021, compared to 0.57 EH/s as of December 31, 2020.
Increased Bitcoin held on balance sheet by 353% to 4,884 BTC as of December 31, 2021, compared to 1,078 BTC as of December 31, 2020.
“We are pleased to report that 2021 was a record financial year for the Company,” said Jason Les, CEO of Riot. “2021 was also a transformative year, with the Company emerging as a vertically-integrated industry leader in Bitcoin mining. Riot is extremely well-positioned for the future with demonstrated access to low-cost infrastructure, a world-class digital infrastructure development team, highly-specialized in-house engineering capabilities, industry-leading utilization of cutting-edge immersion-cooling technology, increasing hash rate and a strong balance sheet. As part of our strategy in 2022, the Company will continue to leverage its industry-leading position and focus on driving operational, technological and financial improvements that are expected to deliver results for our shareholders.”
Fiscal Year 2021 Operational Highlights
Invested in 82,500 Bitmain S19, S19 Pro, S19j Pro, and S19XP Antminers which, when fully installed by January 2023, are expected to achieve an estimated aggregate Bitcoin mining hash rate capacity of 12.8 EH/s.
Increased deployed hash rate capacity to 3.1 EH/s, a 444% increase from 0.6 EH/s as of December 31, 2020.
Acquired Whinstone in May 2021, North America’s largest Bitcoin mining facility, and commenced an immediate expansion to 700 MW.
Announced the Bitcoin mining industry’s first industrial-scale immersion-cooled Bitcoin mining operation in October 2021.
Acquired ESS Metron, a premier provider of highly-engineered electrical equipment solutions, in December 2021, significantly enhancing the Company’s position as a vertically-integrated industry leader in Bitcoin mining.
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Fiscal Year 2021 Financial Results
Total mining revenue in 2021 was $184.4 million, as compared to $12.0 million in 2020, an increase of 1,439% year-over-year.
Mining revenue in excess of mining cost of revenues (excluding depreciation and amortization), was $138.9 million (75% of total mining revenue), as compared to $5.7 million (48% of total mining revenue) in 2020. The increases 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 2021, offset by the increase in the global network hash rate in 2021.
Selling, general, and administrative (SG&A) expenses in 2021 increased to $87.4 million from $10.3 million in 2020, an increase of 753% year-over-year. The increase in SG&A was primarily due to an increase in non-cash stock-based compensation, stemming from the introduction of the Company’s performance stock incentive plan. SG&A expenses, not including stock-based compensation, increased to $18.9 million in 2021 from $6.8 million in 2020, an increase of 178% year-over-year. Taking into account the 1,439% year-over-year increase in the Company’s mining revenue, the Company’s operating leverage significantly increased in 2021.
Net loss for 2021 was $(7.9) million, or $(0.08) per share, compared to a net loss of $(12.7) million, or $(0.30) per share in 2020. The net loss in 2021 included non-cash stock-based compensation of $68.5 million, depreciation and amortization of $26.3 million, and non-recurring acquisition-related costs of $21.2 million.
At December 31, 2021, the Company had $471.9 million in cash and cryptocurrencies, as compared to $235.0 million at December 31, 2020.
2022 Strategic Priorities
- Successfully complete the ongoing expansion of Whinstone.
- Successfully execute on deployment of disclosed miner purchase orders of 82,500 Bitmain S19 generation Antminers.
- Monitor additional opportunities for miner procurement and hash rate growth.
- Evaluate additional technological initiatives to increase mining efficiencies.
https://www.riotblockchain.com/news-media/press-releases/detail/125/riot-blockchain-announces-financial-results-and-operating
