FAQ

• Bitcoin is a decentralized virtual currency (cryptocurrency) that operates as a commodity that allows users to buy, sell and exchange goods and services without a bank. • It’s similar to online cash: There are no physical coins or notes. • Unlike flat or traditional currency, Bitcoin is created, distributed, traded and stored using a decentralized ledger system known as the Blockchain.

• The Blockchain is a virtual ledger that stores data in blocks linked together. • The information on the blockchain cannot be altered once created and is visible to all, making it a transparent data storage system. • The name comes from the way the blocks are chained together in chronological order.

• Bitcoin mining is like a competitive puzzle-solving game where miners use powerful computers to validate and add transactions to the Bitcoin ledger. • The first miner to solve the problem and add the block to the Blockchain earns newly created Bitcoins and transaction fees.

• Bitcoin is a decentralized digital currency, which means it is not regulated by any single government or central bank in the same way that traditional currencies are. • U.S. government agencies treat Bitcoin as both a digital commodity and a virtual currency.

• Like many businesses, Bitcoin miners rely on electricity to power their operations. • Currently, Riot is a large flexible load on the Texas Grid operated by ERCOT. • The company has long-term power purchase agreements, which allow it to mine Bitcoin, or to sell energy back to the market. • Riot also participates in ERCOT demand response programs to help stabilize the grid during times of high demand.

• Riot’s operations do not require freshwater. • Riot’s Rockdale facility is primarily air-cooled and utilizes minimal amounts of water. • Water used for operations at the Rockdale facility is not municipal water, it is sourced from an adjacent lake. • The immersion cooling systems that are utilized require minimal amounts of water compared to typical data centers or other major industries. • For context, agriculture uses 70% of the world’s water, and U.S. golf courses alone use double the water of the entire world’s Bitcoin mining footprint.

• The Rockdale facility is located adjacent to the former Aloca plant, not near residential areas. • Sound coming from the facility is similar to that of an air conditioner and should not impact the lives of nearby residents.

• Bitcoin miners like Riot shut off operations during peak demand, and do not add strain to the grid when energy is needed most. • Riot, like hundreds of other companies, participates in demand response programs which help improve grid reliability. • Bitcoin miners like Riot generally have lower opportunity costs and drive down the price of ancillary services for rate payers.

• The mission of Bitcoin is to empower individuals to be their own bank and have easy access to money that can’t be inflated away. • Bitcoin offers an alternative to dollar debasement, which is caused by money printing and reckless spending in Congress. • Bitcoin also stands in opposition to CBDCs — a form of digital currency that would allow governments to surveil spending and even control bank accounts. • Much of the opposition to Bitcoin mining in Texas is supported by pro-CBDC organizations and politicians.