Riot Platforms Bolsters Hash Rate with a $97.4M Purchase of MicroBT Miners
Jessie A Ellis Feb 28, 2024 07:45
Riot Platforms invests $97.4 million in state-of-the-art mining hardware from MicroBT to scale up efficiency and capacity at its Rockdale mining facility.
Riot Platforms, Inc. (NASDAQ: RIOT), a trailblazer in vertically integrated Bitcoin mining, has taken a significant step to amplify its mining operations. The company has announced a substantial investment in a new batch of mining hardware, purchasing 31,500 WhatsMiner M60S miners from the distinguished manufacturer MicroBT for a total of $97.4 million. This strategic acquisition is set to replace less efficient miners and add considerable hash rate capacity at Riot's flagship Rockdale Facility.
Expanding Hash Rate Capacity
The purchase comes at a cost of approximately $16.50 per terahash (TH), reflecting the focus on enhancing operational efficiency and the overall hash rate. The 31,500 miners boast a combined total of 5.9 exahash per second (EH/s), which significantly contributes to the company's ambitious goals. Riot's foresight in hash rate growth is evident as it expects to reach a target of 31 EH/s by the end of 2024, incorporating expansion at both the Rockdale and the forthcoming 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 hash rate from its current 12.4 EH/s to an estimated 15.1 EH/s by the end of July 2024. Approximately 14,500 miners will be added to the Rockdale Facility's capacity, and around 17,000 will replace existing underperforming hardware.
The M60S miners are MicroBT's latest generation air-cooled machines, each offering an efficiency of 18.5 joules per TH and an output of approximately 186 TH/s. This upgrade is anticipated to result in enhanced operating uptime and energy efficiency, as these units are noted as the most efficient produced by MicroBT to date.
Riot reported a significant operational growth in 2023, with a total revenue of $280.7 million, up from $259.2 million in 2022, according to Blockchain.News. The company saw a 19% increase in Bitcoin production, with 6,626 Bitcoin mined. Riot's strategic power strategy earned $71.2 million in power credits during supply/demand issues. The company expanded its Rockdale Facility and Corsicana Facility, aiming to become the world's largest dedicated Bitcoin mining facility. Riot's financial health was strong, with a strong balance sheet and a 33% decrease in Bitcoin mining costs.
CEO Perspectives
Riot's CEO, Jason Les, expressed enthusiasm about the acquisition: "This order not only increases our hash rate but also significantly improves our operational efficiency." Les further added that the investment underscores Riot's commitment to becoming a leading low-cost Bitcoin miner and enhancing its industry-leading fleet.
Jordan Chen, COO of MicroBT, also commented on the strengthened partnership with Riot and the shared vision for a 100+ EH/s mining fleet in the future.
About MicroBT and WhatsMiner and Riot Platforms, Inc.
MicroBT is a blockchain technology company focusing on integrated circuit chips and high-performance computing solutions. It has recently started manufacturing 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 globally.
Riot Platforms, Inc. aspires to be the world’s leading Bitcoin-driven infrastructure platform, positively impacting sectors, networks, and communities. With its integrated strategy, Riot conducts data center hosting, Bitcoin mining, and electrical switchgear engineering and fabrication across central Texas and Denver, Colorado.
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