Riot Platforms’ recent acquisition of MicroBT bitcoin miners holds significant significance in the context of the upcoming halving event in 2024.
Riot Platforms Inc (NASDAQ:RIOT), a leader in the bitcoin (BTC) mining industry, has announced a major development as it seeks to expand its mining capabilities.
The company stated in a press release It has entered into a long-term purchase agreement with MicroBT Electronics Technology Co., LTD, a well-known manufacturer of bitcoin miners. This strategic partnership aims to boost Riot’s mining capacity by securing an initial order of 33,280 MicroBT next-generation bitcoin miners.
The total amount of the initial order is $162.9 million, excluding taxes, fees, and settlements. This equates to an approximate cost of $21.50 per soil, which is competitively priced for mining equipment.
This strategic move comes in anticipation of the halving event in 2024, which is expected to bring major changes to the Bitcoin mining landscape. Through this expansion, Riot Platforms aims to establish itself as a major player in the cryptocurrency mining industry and maximize its mining capabilities in the future.
Riot has stated that the MicroBT miners ordered will be produced in the US specifically for Riot’s Corsicana facility. The move is in line with Riot’s strategy to expand mining operations within the country. With newly acquired MicroBT miners manufactured at a facility in Pittsburgh, Pennsylvania, this collaboration establishes a strong domestic supply chain for bitcoin miners, an important milestone for the industry.
Furthermore, Riot indicated that the deployment process is expected to take some time due to the large number of miners involved. According to the agreement, deliveries of the new miners are scheduled to begin in December 2023.
Riot Platforms expects to complete the full deployment of 33,280 miners by mid-2024. This timeframe allows for accurate installation, configuration, and optimization of mining equipment to ensure optimal performance.
The significance of Riot Platform’s takeover of the halving event
Riot Platforms’ recent acquisition of MicroBT’s Bitcoin miners holds significant significance in the context of an upcoming halving event in 2024. This is because the halving event, which occurs every four years, reduces block rewards for miners, which affects the economics of bitcoin mining.
However, upon completion of deployment, Riot’s self-mining hash rate capacity is expected to increase to 20.1 EH/s (exahashes per second). Increasing the self-mining hash rate capacity is a strategic move by Riot Platforms.
As block rewards decrease, maintaining a competitive hash rate becomes crucial to mining profitability. By expanding its mining fleet and hash rate capacity, Riot Platforms aims to offset the effects of the production rate halving, ensuring continued profitability and operational efficiency.
This significant increase in hash rate capacity positions the company as a major player in the bitcoin mining industry, enhancing its role in verifying transactions and contributing to the overall security and efficiency of the bitcoin network.
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Benjamin Godfrey is a blockchain enthusiast and journalist who enjoys writing about real-world applications of blockchain technology and innovations to drive public acceptance and global integration of the emerging technology. His desires to educate people about cryptocurrencies have inspired his contributions to popular blockchain-based media and websites. Benjamin Godfrey is a fan of sports and farming.
