Bitcoin Mining Company Riot Acquires 33,000 New Rigs for $162 Million
The Colorado-based Bitcoin mining company Riot Platforms acquired 33280 mining rigs from MicroBT at $162 million. The Riot team plans to increase its hash rate to gain market dominance. On June 26, the Riot team confirmed to enter into a purchase agreement with MicroBT outlining the acquisition terms and conditions.
According to the report, the Application-Specific Integrated Circuit (ASIC) order increased by $162.9 million. It was reported that Riot’s latest acquisition was ranked top among other similar purchases made by its competitors.
Riot Platforms Secures 33000 Mining Rigs
Based on the purchase term MicroBT agreed to deliver the mining rigs in the Q4 of 2023. Later the machines will be deployed on the Riot platform in 2024.
The report stated that the miners would be deployed at Riot Corsicana Facility. Corsicana is based in Texas, which constitutes a business-friendly community.
In a press release, the chief executive of Riot, Jason Les, revealed that Riot completed its first order of purchasing the mining machine from MicroBT. He confirmed that the purchases are the latest models, which are powerful and efficient.
Les mentioned that the MicroBT deal was the first purchase the firm has made for Bitcoin mining. He noted that the mining rigs have unique features suitable for immersion cooling systems.
Elsewhere the chief operating officer at MicroBT, Jordan Chen, confirmed that Riot’s purchase was a significant milestone for the company. He explained that the M56S+ and M56S++ models were among the most powerful machines the firm has ever produced.
Chen noted that MicroBT, led by the engineering team, has invested heavily in technological advancement. He affirmed that all the machines ordered by Riot would be manufactured by MicroBT United States unit.
Chen added that Riot’s order would compel the tech firm to recruit new talents and train the existing workforce to meet the ever-evolving manufacturing sector. Per the report, the ASIC model bought by Riot platforms will includes M56S+ and M56S++ models.
Will Riot Platforms Manage to Increase Hash Rate Capacity?
Also, there was the latest model, which was launched in April which was purchase by Riot. The mining machine was reported to produce 22 joules per terahash (J/TH), and its maximum hash rate reaches 230 terahashes per second (TH/s).
The Riot report mentioned that a hash is a mathematical element required by the miners to find a possible solution to develop a new Bitcoin block. On the other hand, mining rigs consume measurable amounts of energy to produce multiple guesses to solve a problem and enable the miner to mine the next block. At standard condition a mining machine generates roughly 6.25 Bitcoins (BTC).
Subsequently, one terra hash produces trillion hashes while one exahash is equivalent to quintillion hashes. Following the MicroET purchases, the Riot’s hash rate capacity is expected to increase by 7.6EH/s to a maximum of around 20.1EH/s.
The Riot team anticipates purchasing a 66560M56S++ mining machine in 2024 under the same conditions stipulated by MicroET. If the acquisition of the proposed 66560M56S++ miner materializes, Riot’s hash rate will surge to 35.4EH/s.
A recent study by vcharts revealed the total hash rate for Bitcoin networks had reached 396EH/s. In light of Les’ press release, the 2024 deployment will support Riot to maintain a strong fleet that will outshine the next Bitcoin halving.
Effect of Bitcoin Halving
Surprisingly the upcoming Bitcoin halving is expected to start in April 2024, which will subject the miner to lower Bitcoin rewards amounting to 3.125BTC. The decrease in block reward will propel the Bitcoin price to soar further.
On June 22, the US Bitcoin miner CleanSpark chief finance officer Gary A. Vecchiarelli confirmed that Bitcoin halving would take place next year. While he was closing the acquisition deal for two Georgian-based mining facilities Vecchiarelli elaborated on the upcoming Bitcoin halving. The CleanSpark acquisition deal was closed at $9.3 million a few days ago.
Consequtively, the popular Bitcoin miner Arkon Energy purchased a mining facility based in Hannibal, Ohio, at an undisclosed amount. The Arkon team aimed to increase the hash rate capacity by adding a 200MW miner.
The acquisition made by the Arkon team was the first deal the Sydney-based miner executed in an attempt to expand to the US. The Arkon team revealed plans to invest in completing the design stage for the Hannibal facility.
After the completion proposed design, the Arkon team projects to produce 100MW from the miner. On June 20, the Bitcoin mining company raised $26 million from a funding round.
Tokenhell produces content exposure for over 5,000 crypto companies and you can be one of them too! Contact at info@tokenhell.com if you have any questions. Cryptocurrencies are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by Tokenhell authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. Tokenhell is not responsible for the content, accuracy, quality, advertising, products or any other content or banners (ad space) posted on the site. Read full terms and conditions / disclaimer.
