Riot Blockchain Makes $290.5 Million Purchase of Bitcoin Mining Rigs
Bitcoin miner Riot Blockchain has made a significant purchase of 66,560 bitcoin mining rigs from MicroBT, marking one of the company’s largest orders to date. The total cost of the purchase is $290.5 million, with an average cost of $4,360 per machine.
Riot Extends Agreement with MicroBT for Additional Miners
Riot Blockchain has extended its agreement with MicroBT to acquire up to 265,000 additional miners under the same terms as the recent order. This agreement provides Riot with options to expand its mining operations further.
New Miners to Boost Riot’s Hash Rate and Deployment Schedule
The newly acquired MicroBT miners, primarily consisting of the M66S model with a hash rate of 250 terahashes per second (TH/s), will add 18 exahashes per second (EH/s) to Riot’s operations. Deployment of these miners will begin in the first quarter of 2024 and continue into the second half of 2024.
Riot Aims to Strengthen Mining Performance
With this purchase order, Riot aims to own and operate one of the largest and most efficient Bitcoin mining fleets in the world. The majority of the newly acquired machines will be MicroBT’s latest model, the M66S, further enhancing Riot’s mining performance.
Riot Reports Improved Q3 Results Despite Missing Estimates
In its Q3 financial report, Riot Blockchain revealed improvements in Bitcoin production and total revenue compared to the previous year. However, the company fell short of earnings and sales estimates.
Increased Bitcoin Production and Revenue
During Q3, Riot Platforms produced 1,106 bitcoins, reflecting an increase from the same period in 2022. Total revenue for the quarter reached $51.9 million, driven by higher Bitcoin production and elevated average Bitcoin prices.
Riot’s Cost of Mining Bitcoin Improves
The average cost to mine Bitcoin for Riot Platforms improved during Q3, standing at $6,141 per Bitcoin. This represents a significant improvement compared to the same period in 2022.
Riot’s Power Curtailment Credits and Working Capital
Riot Platforms earned $49.6 million in power curtailment credits during the quarter, a substantial increase from the previous year. The company also has $442.3 million in working capital, including cash and unencumbered Bitcoins.
Hot Take: Riot Blockchain Expands Mining Fleet with Major Purchase
Riot Blockchain’s purchase of 66,560 Bitcoin mining rigs from MicroBT demonstrates its commitment to expanding its mining fleet and strengthening its hash rate. With this acquisition, Riot aims to become one of the largest and most efficient Bitcoin miners globally. Despite falling short of earnings estimates in Q3, the company has shown improvements in Bitcoin production and total revenue. As it continues to deploy more miners and enhance its mining performance, Riot is positioning itself for success in the growing crypto mining industry.
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