In a significant move to bolster its Bitcoin mining capabilities, Riot Platforms, Inc. (NASDAQ: RIOT) has recently intensified its collaboration with MicroBT Electronics Technology Co., LTD, a leading manufacturer of Bitcoin miners. The company, recognized for its robust role in the Bitcoin mining and data center hosting sphere, declared the execution of a substantial purchase option. This move supplements Riot’s current mining power, propelling its position in the industry.
The agreement details reveal that Riot will acquire 66,560 of MicroBT’s latest-generation miners. This addition, combined with a previous order of 33,280 units, will remarkably enhance Riot’s self-mining hash rate capacity to surpass 38 EH/s. Furthermore, the company has been granted the option to purchase up to 265,000 additional miners, potentially expanding its capacity to over 100 EH/s.
Advancements in Mining Technology
The newly ordered miners predominantly comprise the M66S model, MicroBT’s most efficient miner to date, boasting an efficiency rating of 18.5 Joules per terahash (TH). This efficiency is a testament to the evolving technology in the Bitcoin mining sector, where power consumption and efficiency are pivotal factors. The miners will be manufactured in the United States tailored for immersion cooling, a cutting-edge approach that enhances miner lifespan and efficiency.
The investment in these miners totals $290.5 million, averaging approximately $16/TH. This strategic acquisition underlines Riot’s commitment to growing its hash rate while maintaining cost-effectiveness and operational efficiency.
The deployment of these mining units is meticulously scheduled. The initial batch of 33,280 MicroBT miners will commence deployment in Q1 2024. The subsequent delivery and deployment of the additional 66,560 miners are slated for the second half of 2024, with the full deployment expected to be completed by the second half of 2025.
RIOT Stock Price Reacts Positively
Reflecting investor confidence in Riot’s strategic expansion, the Riot Blockchain stock price witnessed a notable surge. In the 24 hours following the announcement, the stock price increased by 12.35%, reaching $13.77. This uptick underscores the market’s positive reception of Riot’s ambitious growth plans and its reinforced partnership with MicroBT.
Jason Les, CEO of Riot, expressed his enthusiasm about the most significant hash rate order in the company’s history. He emphasized the significance of this agreement in maintaining Riot’s position as a leader in the Bitcoin mining industry. Jordan Chen, COO of MicroBT, reciprocated the sentiment, highlighting the fruitful collaboration between the two companies.
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