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Riot Platforms increases its mining capacity with new purchases

Riot Platforms

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TL;DR

  • Riot Platforms have announced the purchases of new state-of-the-art mining rigs.
  • The company recorded a drop in its share price.

Riot Platforms, a prominent player in the Bitcoin mining industry, has recently made a significant investment to enhance its operations. The company has acquired 33,280 state-of-the-art Bitcoin mining rigs, procured from leading manufacturer MicroBT. The purchase, valued at $162.9 million, is aimed at bolstering Riot Platforms’ self-mining capacity ahead of Bitcoin’s anticipated halving cycle in mid-2024.

Riot Platforms splashed $163 million on the miners

The new batch of miners, expected to be installed by the first quarter of 2024, will contribute an additional 7.6 exahashes per second (EH/s) to Riot Platforms’ existing mining capacity. Upon full deployment, the company’s self-mining capacity is projected to reach 20.1 EH/s. This strategic move will further solidify Riot Platforms’ operational efficiency, particularly in light of the upcoming Bitcoin halving.

The acquired mining rigs have been specifically designed to utilize immersion cooling systems, similar to those implemented at Riot Platforms’ Corsicana facility. Among the purchased machines, 8,320 are M56S+ models boasting a hash rate of 220 terahashes per second (TH/s), while the remaining 24,960 units consist of the slightly more powerful M56S++ models, operating at 230 TH/s.

Although the delivery of the mining rigs is scheduled for December, the complete deployment of these units is expected to conclude by mid-2024. Moreover, Riot Platforms has expressed its intention to potentially acquire an additional 66,560 M56S++ models before December 31, 2024. If exercised, this option would contribute a further 15.3 EH/s to the company’s self-mining capacity, reinforcing its market position.

The company recorded a drop in its share price

Interestingly, despite the positive developments and expansion plans, Riot Platforms experienced a 7.2% decline in its share price on June 26, with stocks trading at $10.77, according to Google Finance. This discrepancy between the company’s progress and stock performance highlights the complexity of market dynamics and investor sentiment surrounding the Bitcoin mining sector.

In a separate industry development, Sydney-based Bitcoin miner Akron Energy has made its first expansion into the United States. The company recently acquired a 200-megawatt (MW) mining facility located in Hannibal, Ohio, for an undisclosed amount. This acquisition follows Akron Energy’s successful $26 million funding round on June 20, which enabled the firm’s entry into the U.S. market.

Akron Energy plans to promptly initiate the first stage of designing the Hannibal facility, with the ultimate goal of achieving a power capacity of 100 MW. The mining facility is primarily intended to cater to institutional-scale clients operating within the Bitcoin industry. This strategic move positions Akron Energy to tap into the growing demand for hosting services and serve as a key player in the evolving landscape of Bitcoin mining operations.

As the Bitcoin mining industry continues to evolve and adapt, investments such as Riot Platforms’ equipment acquisition and Akron Energy’s expansion underscore the competitive nature of the sector. These developments reflect a broader trend of companies seeking to enhance their mining capabilities and leverage the potential of digital currencies. With Bitcoin’s upcoming halving cycle on the horizon, the race to secure efficient mining infrastructure is expected to intensify as companies strive to maintain a competitive edge in this dynamic market.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Owotunse Adebayo

Adebayo loves to keep tab of exciting projects in the blockchain space. He is a seasoned writer who has written tons of articles about cryptocurrencies and blockchain.

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