By Michael Scott
Riot Platforms is expanding its mining equipment fleet with the acquisition of 33280 mining rigs from MicroBT as it eyes increased hashrate capacity. The Nasdaq-listed under the ticker symbol (RIOT) is set to scale the hashrate capacity height with the addition of 33280 mining rigs acquired for $162 million.
Riot Platform’s Realizes Multi-million Standout Purchase of ASIC Machines
Acquiring new mining rigs will cement Riot Platforms among the largest Bitcoin mining firms globally. In particular, Riot Platforms’ agreement with MicroBT Electronic Technologies features the option of acquiring 66,560 new machines under the same terms.
The order placed by Riot Platforms to acquire new Application-Specific Integrated Circuit (ASIC) machines for $162.9 million constitutes a standout purchase from the series of similar investments made in 2023 by competing mining firms.
Riot Platforms identifies MicroBT as a leading manufacturer of ASIC machines it targets to install at its Corsicana Facility. While the equipment fleet is scheduled for delivery by December 2024, Riot Platforms intends to deploy them in 2024’s first quarter.
Riot Platforms chief executive Jason Les expressed excitement about receiving ASIC bitcoin miners for installation at the Corsicana Facility. The firm’s statement via the Riot website on January 26 lauded the acquisition as critical to raising its hashrate capacity to 20.1 Exahashes per second (EH/s).
Riot Adds Power Efficient M56s++ ASIC Model
Les described the new ASIC models as among the most powerful and efficient mining equipment ever designed for Bitcoin. He restated that the unique design of ASIC models features a unique design and is specifically produced to suit immersion cooling systems.
Riot’s statement identifies the Corsicana facility in Texas as a business-friendly community. Les identifies the community as a business for a site within 50 miles Southeast of Dallas downtown within Interstate 45.
Riot acquisition features the latest ASIC models recently unveiled by MicroBT. In particular, the Riot new fleet comprises the M56s+ and M56S++. The latter ASIC model launched in April has a higher power efficiency approximated at 22 joules per terahash (J/TH), with its optimum hashrate realizing 230 terahashes per second (TH/s).
The Riot’s statement identifies hash as the solution that each miner solves to the complex mathematical problems to build the new Bitcoin block. The mining equipment consumes a high energy amount when generating guesses. Each attempt to triumph in solving the problem for it to mine the next block, whose reward is 6.25 bitcoins.
Riot Platform Set to Increase Hashrate Capacity by 7.6 EH/s
The statement reveals that the 33280 acquisition will increase Riot’s hashrate capacity by 7.6 EH/s, with the accumulated capacity increasing to 20.1 EH/s for all mining facilities.
Riot can activate the option secured to acquire an additional 66560 M56S++ under similar terms. However, the offer is valid till the end of 2024. Assuming that Riot will execute the option, its hashrate would increase to 35.4 EH/s. This would raise Riot’s capacity closer to 10% of the entire Bitcoin network’s hashrate, estimated at 398 EH/s as per Ycharts data.
Les is optimistic about the decision to acquire additional machines before the upcoming Bitcoin halving project is projected to occur in April 2024. Enhancing the strong fleet efficiency for Riot is beneficial since the block rewards would slide to 3.125 BTC. The decline is projected to fuel the historical Bitcoin rally to a bullish trend in the subsequent months.
Bitcoin Miners Allocate Hundreds of Millions in Purchasing Facilities and Rigs
A glance at the mining industry shows increased acquisition by the few firms that survived the prolonged crypto winter. CleanSpark chief finance executive Gary Vacchierelli admitted heightened preparedness by acquiring $9.3 million mining facilities from Turnkey Bitcoin.
CleanSpark chief executive Zach Bradford confirmed that the firm’s year-to-date spending in acquiring equipment is estimated at $200 million. The recently acquired facilities have 6000 Antiminer S19J Pro+ and S19 XPs. The former boasts the leading power efficiency relative to the energy-per-hash rate basis.
Besides the expansion announced by Blockstream, the Nasdaq-listed Iris Energy saw its IREN stock surge 21% following the June 20 statement.