Riot Blockchain

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Riot Blockchain
Riot block logo.png
Founded 2017
Headquarters Castle Rock, Colorado
Key People Jeffrey G. McGonegal, CEO; Rob Chang, CFO; Megan Brooks, vice president of finance; Karl Diab, lead blockchain engineer; Ivan Soto, chief compliance officer of RiotX Exchange; Paul Pascual, head of mining operations
Products Bitcoin mining and investing
Twitter @RiotBlockchain
LinkedIn Profile
Facebook RiotBlockchain
Website Homepage

Riot Blockchain is a cryptocurrency investment and technology development firm based in Castle Rock, Colorado. Riot is primarily occupied with cryptocurrency mining on the technology side.[1]

Company History

Riot Blockchain was formed in October 2017 when Bioptix, a biological sciences technology firm with one registered veterinary patent, changed its name to Riot Blockchain.[2] Bioptix initially went public in October 2003.[3]

The publicly traded company's stock price increased from $8 per share to $40 per share within months of the name change. Riot Blockchain was one of several companies subpoenaed by the U.S. Securities and Exchange Commission (SEC) for, among other things, including the term "blockchain" in its name absent a clear connection to the industry. In this case, the company was indeed changing focus but remained under SEC investigation for other issues. The company experienced considerable turmoil in its boardroom and among long term investors.[4]

In March 2018, Riot Blockchain revealed in documents filed with the SEC that it had purchased 92.5% of Logical Brokerage Corp, a registered futures commission broker. At the time the company said that it was investigating launching a cryptocurrency exchange as well a crypto futures brokerage business.[5]

In a March 2019 filing of a Form S-3 to the SEC, the company described its Oklahoma City, Oklahoma, mining operation as well as its plans for a cryptocurrency exchange that was to include banking services, a trading engine, and digital wallet services, which were to be provided by third parties. The S-3 filing related to the resale of previously issued securities by Riot Blockchain. Statements in the filing indicate that the company plans to launch an exchange called RiotX in 2019.[6]

Riot Blockchain's first quarter financial report filed with the SEC showed that the company continued to lose money but at a lower rate than in the year-ago period. In operations that roughly broke even, Riot Blockchain mined 329 bitcoins, 356 Bitcoin Cash (BCH) and 1,422 Litecoins in the quarter. The company claims to be one of the largest publicly held (and therefore publicly reporting) cryptocurrency miners.[7]

In December 2019, Riot purchased 4,000 Antminer Pro machines from Bitmain. In February 2020, the company purchased 1,060.

In April 2020, Riot announced it would be moving some of its mining machines from its facility in Oklahoma City to Coinmint's power plant located in Massena, New York. Riot said that the new facility would be used primarily for operational testing, and that the move was partially made to save money on power due to Oklahoma City's heat, which caused cooling issues for the machines that necessitating large power draws.[8]

Products and Services

Riot Blockchain runs bitcoin mining operations and internal companies, as well as investing in DeFi startups.[9] Some of its most notable investments include Coinsquare, Tesspay, and Verady.[10]

The company's mining operations mine bitcoin, Bitcoin Cash, and Litecoin using Riot's hub of S17 mining machines.[11][12]

Key People

  • Jeffrey G. McGonegal - CEO
  • Rob Chang - CFO
  • Megan Brooks - Vice President of Finance
  • Karl Diab - Lead Blockchain Engineer
  • Ivan Soto - Chief Compliance Officer of RiotX Exchange
  • Paul Pascual - Head of Mining Operations[13]