Massive Expansion by Bitcoin Mining Giant Riot Platforms with Purchase of 66,560 Microbt ASIC Miners
In a pivotal stride for Riot Platforms, a key player in the bitcoin mining market listed on the Nasdaq, the company has committed to an unprecedented expansion by investing $290.5 million in the largest ASIC miner acquisition in its history, aiming to power up its hash rate by 18 exahash per second (EH/s).
Based in Texas, Riot has scaled up its bitcoin mining abilities by securing 66,560 units of the cutting-edge Whatsminer M66S models from Microbt, at an average price of $16 per terahash. The firm has also procured options to further expand its hardware arsenal with an additional 75 EH/s from the ASIC producer in the future.
Prospects and Features of Riot’s Newly Acquired Microbt’s Whatsminer M66S Models
The newly procured 66,560 units of Microbt’s Whatsminer M66S models project a significant leap in Riot’s expansion roadmap. Known for their advanced immersion-cooling capabilities, the Microbt ASIC machines have an effective rate of 18.5 joules per terahash (J/T).
Microbt’s product listing reveals that these high-yield miners can generate between 270 and 298 terahash per second (TH/s). Post this substantial investment, Riot Platforms has shocked the market with its growth, given its previous purchase earlier in June which included 33,280 Microbt ASIC bitcoin miners equivalent to 7.8 EH/s.
The previous purchase is set to be deployed by the initial quarter of 2024. In comparison, the recent acquisition of 18 EH/s of immersion-cooled units will be operationally deployed in the second half of 2024. Riot’s CEO, Jason Les, shared his excitement about the company’s accelerated expansion strategy.
Les noted the active development of infrastructure at their Corsicana Facility, a move aligned with their long-established, proven, vertically-integrated approach. He added that Riot is excited to fortify its association with Microbt and emphasized on his company’s vision to reach and surpass the 100 EH/s mark in the coming years.
Adding to the flurry of excitement, Riot updated its agreement with Microbt and secured an option to purchase an additional 265,000 Whatsminer models from them. If Riot were to capitalize on this, its fleet’s capacity could well exceed 100 EH/s. Post announcement, Riot’s shares shot up by 9% against the dollar, with an astounding 294% increase year-on-year.
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Frequently asked Questions
1. How has Riot boosted its hashrate and by how much?
Answer: Riot has boosted its hashrate by 18 EH/s.
2. What type of Bitcoin miners did Riot secure?
Answer: Riot has secured 66,560 Microbt ASIC miners.
3. Why is an increased hashrate significant for Bitcoin mining?
Answer: An increased hashrate signifies a higher computational power, which is crucial for mining Bitcoin and increasing the chances of solving complex mathematical problems to earn rewards.
4. What impact can Riot’s increased hashrate have on the Bitcoin network?
Answer: Riot’s increased hashrate can contribute to a more secure and decentralized Bitcoin network by making it more difficult for malicious actors to gain control over the network’s consensus mechanism.
5. How does Riot’s acquisition of Microbt ASIC miners affect its competitiveness in the mining industry?
Answer: Riot’s acquisition of a large number of Microbt ASIC miners enhances its competitiveness in the mining industry by significantly increasing its mining capacity and potential profitability.
6. What are some potential challenges Riot might face with this large-scale acquisition?
Answer: Riot might face challenges such as managing the logistics of deploying and maintaining such a large number of miners, ensuring adequate power supply, and handling potential hardware failures.
7. How does Riot’s move impact the overall narrative of Bitcoin mining centralization?
Answer: Riot’s move to secure a substantial number of miners contributes to the ongoing narrative of Bitcoin mining centralization, as large-scale mining operations continue to accumulate significant computational power, potentially reducing decentralization.