Riot Platforms Inc

1. Bitcoin Mining: The core business of Riot Platforms is Bitcoin mining. The company utilizes high-performance ASIC mining machines and its own facilities for large-scale mining, providing strong computational power support for the Bitcoin network. Its goal is to become one of the largest and most cost-effective Bitcoin mining companies in the United States.
2. Data Center Management: Riot operates multiple large data centers, which are specifically designed for mining activities and can provide high-density computing power support. It is worth mentioning that the company actively adopts renewable energy to power these data centers in order to reduce its environmental impact.
3. Blockchain Infrastructure: In addition to mining operations, Riot is also involved in the development and application of blockchain technology, aiming to explore the potential of decentralized technology in various fields.

The profit model of Riot Platforms mainly includes the following aspects: • Mining Income: The company primarily obtains newly minted bitcoins as rewards through bitcoin mining activities. Subsequently, Riot sells a portion of the mined bitcoins to cover operating costs and achieve profits. • Power-related income: Riot generates power-related income by participating in the electricity market (such as ERCOT's "Four Coincident Peaks" program and demand response projects). This model helps to reduce its actual operating costs for mining, especially during periods of significant fluctuations in electricity prices, effectively hedging risks. • Investment income: The company will strategically purchase and hold Bitcoin, thereby gaining asset appreciation from the rise in Bitcoin prices. This enhances the strength of the company's balance sheet, but also increases its exposure to the volatility of the cryptocurrency market.

The various profit models of Riot Platforms play an important role and significance: • Mining Income: This is the company's core source of revenue, directly reflecting its contribution to the Bitcoin network and its ability to acquire new bitcoins. The stability and growth of mining income are key indicators for measuring the company's operational efficiency and market competitiveness. • Electricity-related income: This income is crucial for reducing the operational costs of mining, especially in the mining industry where electricity costs account for a significant proportion. By participating in the electricity market, Riot can optimize energy usage, enhance overall profitability, and to some extent, mitigate energy price risks. • Investment returns: Strategically holding Bitcoin allows the company to share in the long-term growth dividends of Bitcoin prices, thereby enhancing its asset strength. However, this also means that the company needs to bear the risks brought by Bitcoin price fluctuations, and its asset value will change with market conditions.

Mainly affected cryptocurrency: The cryptocurrency primarily affected by Riot Platforms is Bitcoin (BTC). All of its core business and profit models revolve around Bitcoin. •Influence method: •Hashrate Contribution: As one of the world's leading Bitcoin mining companies, Riot's mining activities directly increase the total hashrate of the Bitcoin network. A higher hashrate means stronger network security and resistance to attacks. • Market Sentiment: The operational data of Riot Platforms, such as monthly mining output, changes in Bitcoin holdings, and financial reports, will affect the market's confidence in the Bitcoin mining industry. This data may indirectly influence the market sentiment and price trends of Bitcoin. • Bitcoin Supply: Although Riot will sell some of the mined Bitcoin to maintain operations, its strategic holding of a large amount of Bitcoin has, to some extent, reduced the circulating supply in the market, which may support Bitcoin prices in both the short and long term.