Bitcoin mining firm Riot secures 33,000 new rigs for $162 million

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Riot Platforms, one of the world’s largest Bitcoin mining companies, is set to boost its hashing capacity to new heights after purchasing 33,280 mining rigs from MicroBT, a leading maker of bitcoin. machinery needed to mine new coins.

The application-specific integrated circuit (ASIC) order is $162.9 million, making it a standout buy, even among a slew of similar investments from competing companies this year. The machines themselves, however, aren’t slated for delivery until December 2023 and won’t be rolled out until Q1 2024.

Riot is excited to announce its first order of Bitcoin miners for our Corsicana facility from MicroBT, Riot CEO Jason Les said in a press release. These new models are some of the most powerful and efficient miners ever designed for Bitcoin mining and are designed and produced specifically for immersion cooling systems.

Corsicana, Texas is a business-friendly community located just 50 miles southeast of downtown Dallas on Interstate 45.

ASIC models purchased by Riot include the M56S+ and M56S++, the latter of which was released in late April. It offers an energy efficiency of 22 joules per terahash (J/TH) and a maximum hash rate of 230 terahash per second (TH/s). A hash is an attempt to answer the complex mathematical problems that miners must solve to build a new Bitcoin block. The mining machines consume energy by generating as many guesses as possible to be the first to solve the problem and mine the next block, which carries a current reward of 6.25 BTC.

A terrahash is a trillion hashes, while an exahash is a quintillion hashes. Riot’s latest purchase is expected to increase its hash rate capacity by 7.6 PE/s, for a total of 20.1 PE/s across the company’s facilities.

The company has also secured an option to purchase an additional 66,560 M56S++ miners on the same terms, which will be valid until the end of next year. If executed, Riots’ hashrate capacity would increase to 35.4 PE/s.

According to data from ycharts, the total hashrate of Bitcoin networks currently stands at 398 EH/s.

According to Les, the rollout in the coming years will further improve the efficiency of our already strong fleet ahead of the next Bitcoin halving. The halving, expected in April 2024, will reduce block rewards for miners to 3,125 BTC, and is expected to largely drive the price of Bitcoin higher in the months ahead.

CleanSpark Chief Financial Officer Gary A. Vecchiarelli also referenced the halving when discussing his company’s acquisition of two Georgia mining facilities for $9.3 million last week. On Tuesday, NASDAQ traded Iris Energy (IREN) also confirmed plans to increase capacity, driving its stock up 21% on the day.

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