Commentary on Riot Blockchain's Q2'22 Earnings

Riot Blockchain is a vertically integrated Bitcoin miner operating in North America. Their facility in Rockdale, Texas, known as the Whinstone Facility, is the largest Bitcoin mining facility in North America measured by developed capacity. Riot completed the Whinstone acquisition on May 26, 2021, paying $80mm cash and 11.8mm common stock shares to Northern Data. Riot operates across three segments: 

Riot also deployed miners on a month-to-month co-location agreement with Coinmint at Coinmint's Massena, New York facility. In the first half of 2022, Riot elected to not renew this agreement and terminated their co-location partnership on July 8, 2022. Riot is relocating the Coinmint miners to the Whinstone Facility. In tandem, Riot entered into a swap agreement with a 3rd party to transfer 5,700 Antminer S19 Pro miners from the Coinmint Facility in exchange for 5,000 factory-new Antminer S19j Pro miners to the Whinstone Facility. Per the above, Riot recorded a gain on equipment exchange of $8.6mm per ASC 610-20 Sales & Transfers of Nonfinancial Assets reporting.