In short: Riot Platforms has signed a long-term purchase agreement with MicroBT Electronics Technology to acquire 33,280 Bitcoin miners in readiness for the 2024 halving event. Riot Platforms aims to expand its mining capabilities and solidify its position as a major player in the crypto mining industry. The miners will be built in the US and will be sold at $21.50 per terahash, with delivery set to commence in December 2023. Riot Platforms is projecting that its self-mining hash rate capacity will grow to 20.1 exahashes per second upon completion of the deployment, promising operational efficiency and profitability.
Our quick analysis:
Riot Platforms Inc (NASDAQ: RIOT) recently announced its latest expansion move in the Bitcoin mining industry. The company has entered into a long-term agreement with MicroBT Electronics Technology Co. Ltd, one of the well-known manufacturers of Bitcoin miners.
This strategic partnership intends to boost Riot Platforms' mining capabilities by acquiring 33,280 next-generation Bitcoin miners from MicroBT. The initial order for the mining equipment costs approximately $162.9 million, and the miners will be produced in the United States exclusively for Riot's Corsicana Facility.
This move aligns with Riot Platforms' strategy of expanding its mining operations within the country. Plus, MicroBT will manufacture the newly acquired miners in a facility in Pittsburgh, PA, which establishes a robust domestic supply chain for Bitcoin miners, marking a significant milestone for the industry.
The delivery of the new miners is set to commence in December 2023, and the deployment process is likely to take some time. Riot Platforms expects to complete the full deployment of the 33,280 miners by mid-2024, which is a strategic move considering the upcoming halving event.
The halving event, which takes place every four years, reduces block rewards for miners and can significantly affect the economics of Bitcoin mining. The mining profitability is affected, making maintaining a competitive hash rate critical. By expanding its mining fleet and hash rate capacity, Riot Platforms aims to offset the effects of the halving, ensuring continued profitability and operational efficiency.
Upon the completion of the deployment, Riot Platforms' self-mining hash rate capacity is projected to increase to 20.1 EH/s, positioning the company as a major player in the Bitcoin mining industry. This expansion aims to solidify its role in validating transactions and contributing to the overall security and efficiency of the Bitcoin network.
Overall, Riot Platforms' acquisition of Bitcoin miners from MicroBT is a significant move in the context of the upcoming halving event. With this expansion, Riot Platforms aims to maintain its position as a key player in the crypto mining industry, making it a name to watch out for in the future.
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Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
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