Riot Blockchain Announces 8 MW Pilot Project to Evaluate Latest Generation Immersion Module Technology and Innovative Energy Strategies in Texas

Riot Blockchain, Inc., one of the few Nasdaq-listed bitcoin mining companies in the United States, announces an 8 megawatt (MW) pilot project to assess the potential for higher productivity and lower cost mining opportunities in Texas.  Riot has teamed up with two leading-edge technology companies, Enigma Digital Assets AG (“Enigma”) and Lancium, LLC (“Lancium”) to launch the pilot project.  The pilot project has the unique dual focus of evaluating Enigma’s next-generation immersion technology to increase mining productivity, in addition to evaluating Lancium’s Smart Response™ software to reduce energy costs.

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“Bitcoin mining is about scale, low-cost infrastructure and ultra low-cost electricity,” stated Michael McNamara, CEO of Lancium.  “Enigma’s innovative solutions appear to offer a very meaningful improvement on installed cost and productivity.  Lancium’s power-ramping and trading expertise perfectly complements this by delivering an innovative solution to provide the pilot project with low-cost, optimized electricity.”

“Our new mining modules are amoung the world’s most powerful, efficient and heat-resilient solutions for mining Bitcoin,” said Jakov Dolic, Co-Founder of Enigma.  “Large economies of scale allows rapid ROI, and resilience to heat enhances operating performace in hotter climates, especially where powered with low-cost electricity.  We are extremely excited to launch this relationship with Riot and Lancium.”

“We are pleased to announce the pilot project and look forward to advancing the Company’s relationships with Lancium and Enigma,” said Jeff McGonegal, CEO of Riot.  “Enigma’s immersion modules provide significant potential benefits and Lancium’s Smart Response™ software helps miners reduce their cost of power by being opportunistic in the local energy market.  When combined, both technologies have the potential to reduce Riot’s bitcoin production costs, increase hashrates and significantly extend the life of the Company’s bitcoin mining ASICs.”

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During the pilot project, Lancium will provide 8 MW of power for the pilot project.  The initial 3 MW will be dedicated to a current-generation Enigma immersion module, for use with S19-Pro ASIC miners.  A further 5 MW will be made available for Enigma’s next-generation immersion module solution, which is currently in final development and expected to be available in early 2021 for the pilot project.  This next-generation immersion module solution involves proprietary ASIC chips and an entirely new cooling solution.  Both modules are the first of their kind from Enigma.  Riot will control the pilot project with Enigma providing the immersion containers and Lancium licensing its Smart Response™ software.

The pilot project represents the first Controllable Load Resource in the Houston Load zone, with the  energization of the facility planned for Q1 2021.  If successful, Riot may seek to expand upon the pilot project at larger-scale sites.

XMS Capital Partners, LLC acted as a financial advisor to Riot Blockchain in connection with the transaction.

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