The recent acquisition of bitcoin miners from MicroBT by Riot Platforms assumes significant importance in the context of the upcoming halving event in 2024.
Riot Platforms Inc. (NASDAQ: RIOT), a leading player Bitcoin (BTC) mining industry has announced a significant development in its quest to expand its mining capabilities.
the company said 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. The strategic partnership aims to increase Riot’s mining capacity by securing an initial order of 33,280 next-generation bitcoin miners from MicroBT.
Net consideration for the initial order is $162.9 million, excluding taxes, fees and adjustments. This equates to an estimated cost of $21.50 per Terahash (TH), which is a competitive price for mining equipment.
This strategic move comes in anticipation of 2024 event of halving, which is expected to bring significant changes to the bitcoin mining landscape. With this expansion, Riot Platforms aims to solidify its position as a major player in the crypto mining industry and maximize its mining capabilities for the future.
Riot said the miners ordered from MicroBT will be produced in the United States exclusively at Riot’s Corsicana facility. this trick aligns With Riot’s strategy to expand its mining operations within the country. With MicroBT manufacturing the newly acquired miners at a facility in Pittsburgh, PA, this collaboration establishes a strong domestic supply chain for bitcoin miners, a significant milestone for the industry.
Furthermore, Riot noted 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 is projected to complete a full deployment of 33,280 miners by mid-2024. This time frame allows for careful setup, configuration, and optimization of mining equipment to ensure optimal performance.
The Significance of the Riot Platform Acquisition for the Halving Event
The recent acquisition of bitcoin miners from MicroBT by Riot Platform assumes significant importance in the context of the upcoming halving event in 2024. This is because the halving event, which occurs every four years, reduces block rewards for miners, affecting the economics of bitcoin mining.
However, upon completion of the deployment, Riot’s self-mining hash rate capacity is expected to increase to 20.1 EH/s (exahash 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 critical for mining profitability. By expanding its mining fleet and hash rate capacity, Riot Platform aims to offset the effects of the halving, while ensuring continued profitability and operational efficiency.
This significant increase in hash rate capacity establishes the company as a major player in the bitcoin mining industry, reinforcing its role in validating transactions and contributing to the overall security and efficiency of the bitcoin network.
Benjamin Godfrey is a blockchain enthusiast and journalist who loves to write about real-life applications of blockchain technology and innovations to promote general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies drives his contributions to well-known blockchain-based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
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