Riot Platforms Bolsters Hash Rate with a $97.4M Purchase of MicroBT Miners

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Riot Platforms has invested $97.4 million in state-of-the-art mining hardware from MicroBT to increase the efficiency and capacity of its Rockdale mining facility.

Riot Platforms, Inc. (NASDAQ: RIOT), a pioneer in vertically integrated Bitcoin mining, has taken a significant step to expand its mining operations. The company announced a significant investment in a new batch of mining hardware, purchasing 31,500 WhatsMiner M60S miners from the well-known manufacturer MicroBT for a total of $97.4 million. This strategic acquisition is set to replace less efficient miners and add significant hashing speed capacity at Riot’s flagship Rockdale facility.

Expanding hash rate capacity

The purchase comes at a price of approximately $16.50 per terahash (TH), reflecting a focus on improving operational efficiency and overall hashing speed. 31,500 miners boast a total of 5.9 exahashes per second (EH/s), significantly contributing to the company’s ambitious goals. Riot’s hash rate growth forecast is evident as it expects to reach a target of 31 EH/s by the end of 2024, including expansion at both Rockdale and the upcoming Corsicana facilities.

Deployment and operational impact

Scheduled to be delivered in May and June 2024, the new miners will increase the Rockdale Facility’s self-mining hashrate from its current 12.4 EH/s to approximately 15.1 EH/s by the end of July 2024. It will add approx. 14,500 miners to capacity at the Rockdale Facility and about 17,000 will replace existing underperforming hardware.

The M60S miners are MicroBT’s latest generation of air-cooled machines, each offering an efficiency of 18.5 joules per TH and an output of approximately 186 TH/s. This upgrade is expected to result in improved uptime and energy efficiency, as these devices are marked as the most efficient MicroBT has produced to date.

Rebellion reported significant operational growth in 2023, with total revenue of $280.7 million, up from $259.2 million in 2022, according to Blockchain.News. The company reported a 19% increase in bitcoin production, with 6,626 bitcoins mined. Riot’s strategic energy strategy earned $71.2 million in energy credits during supply/demand issues. The company expanded its Rockdale Facility and Corsicana Facility, aiming to become the largest dedicated Bitcoin mining facility in the world. Riot’s finances were strong, with a strong balance sheet and a 33% reduction in bitcoin mining costs.

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CEO Perspectives

Riot CEO Jason Les expressed enthusiasm about the acquisition: “This order not only increases our hashrate, but also significantly improves our operational efficiency.” Furthermore, Les added that the investment underscores Riot’s commitment to becoming a leading low-cost bitcoin digger and enhance its industry-leading fleet.

Jordan Chen, COO of MicroBT, also commented on the enhanced partnership with Riot and the shared vision of a 100+ EH/s mining fleet in the future.

About MicroBT and WhatsMiner and Riot Platforms, Inc.

MicroBT is a blockchain technology company focused on integrated circuit chips and high-performance computing solutions. It recently started producing bitcoin mining hardware in the United States. WhatsMiner, a leading brand of mining hardware developed by MicroBT, is recognized for its efficiency and cost-effectiveness, enjoying widespread use worldwide.

Riot Platforms, Inc. aspires to be the world’s leading Bitcoin-powered infrastructure platform, positively impacting sectors, networks and communities. With its integrated strategy, Riot hosts data centers, bitcoin mining, and electrical switchgear engineering and manufacturing in central Texas and Denver, Colorado.

Image source: Shutterstock

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