Categories: Crypto News
| On
2023-12-05 11:13 AM

Riot Platforms Invests $290.5 million in Bitcoin Mining Boom

  • Major Investment by Riot Platforms: Riot Platforms has invested $290.5 million (ZAR 5.46 billion) in purchasing 66,560 Bitcoin mining rigs from MicroBT. This significant acquisition aligns with the upcoming Bitcoin halving event scheduled for April 2024.
  • Expansion of Mining Capacity: The acquisition includes advanced models like the M66S and is expected to increase Riot's operational capacity by 18 exahashes per second (EH/s). Once all rigs are operational, Riot anticipates a self-mining hash rate capacity of 38 EH/s by the second half of 2025.
  • Potential Impact on South African Market: Riot Platforms' expansion could present significant opportunities for the South African market, given its growing interest in cryptocurrency and strong technological infrastructure, positioning it as a potential hub for Bitcoin mining.
By Nonhlanhla

In a major expansion move, Riot Platforms, a leader in Bitcoin mining, has invested $290.5 million (ZAR 5.46 billion) to acquire 66,560 Bitcoin mining rigs from MicroBT, marking a significant milestone in the company’s history. This purchase is strategically timed ahead of the Bitcoin halving event in April 2024.

With an average cost of $4,360 (ZAR 82,012) per machine, this acquisition reflects Riot’s commitment to enhancing its mining capabilities. This follows a previous agreement in June for 33,280 machines from MicroBT, highlighting the ongoing partnership between the two firms.

Jason Les, CEO of Riot, highlighted the scale of this order as the largest in the company’s history. He anticipates this will substantially boost Riot’s mining performance.

This deal includes over 48,000 of MicroBT’s latest model, the M66S, capable of 250 terahashes per second (TH/s). The rest are M66 and M56S++ models, which collectively will increase Riot’s operational capacity by 18 exahashes per second (EH/s).

Once the 99,840 rigs are operational, Riot estimates a self-mining capacity of 38 EH/s, expected by the second half of 2025. This expansion is particularly timely, considering the upcoming Bitcoin halving in 2024, a factor influencing Riot’s purchase decisions.

Riot’s stock, RIOT, saw a near 9% rise on Dec. 4, signaling investor confidence. It’s up over 345% in 2023, according to Google Finance.

In related news, Bitcoin miner CleanSpark reported a November production of 666 BTC, a 5.2% increase from October and a 24% year-on-year increase. CleanSpark’s CEO, Zach Bradford, attributes this growth to rising fees, likely driven by growing interest in Ordinals.

“This upward trend in fees could soon become a major revenue source, reflecting Bitcoin’s expanding use cases and adoption,” Bradford noted.

As Riot Platforms scales up, the South African market could benefit significantly. South Africa’s growing interest in cryptocurrency and its technological infrastructure positions it as a potential hub for Bitcoin mining. Riot’s expansion and the evolving Bitcoin landscape present unique opportunities for South African investors and tech enthusiasts alike, signaling a bright future for cryptocurrency in the region.

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Nonhlanhla

Nonhlanhla P Dube is a senior news reporter. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her on: Email: nonhlanhla@rateweb.co.za