TL;DR: Riot Platforms announces a groundbreaking partnership with MicroBT to acquire 33,280 advanced Bitcoin miners, fortifying their self-mining capacity before the upcoming Bitcoin halving event. The next-gen Bitcoin miners will be installed at its Corsicana Facility. The partnership strengthens the domestic supply chain and significantly boosts Riot’s self-mining capacity.
Riot Platforms Partners with MicroBT to acquire 33,280 next-gen Bitcoin miners for its Corsicana Facility
Riot Platforms, a leading Bitcoin mining and data center hosting company, has announced a groundbreaking partnership with MicroBT Electronics Technology Co., LTD, securing a substantial order of next-generation Bitcoin miners for its Corsicana Facility.
This strategic deal not only strengthens the domestic supply chain in the United States but also significantly expands Riot’s self-mining capacity, setting the stage for increased efficiency and profitability in the dynamic world of Bitcoin mining.
Riot’s long-term purchase agreement with MicroBT entails the acquisition of 33,280 advanced Bitcoin miners, custom-built for immersion cooling systems.
Manufactured in the United States by MicroBT’s subsidiary, these high-performance miners will be deployed at Riot’s Corsicana Facility starting in the first quarter of 2024. The initial investment of $162.9 million demonstrates Riot’s commitment to staying at the forefront of the Bitcoin mining industry.
The significance of this partnership lies not only in the sheer scale of the order but also in the timing. With the Bitcoin halving event approaching, which will reduce the mining rewards by half, Riot’s strategic move to increase its self-mining hash rate capacity from 12.5 EH/s to 20.1 EH/s by mid-2024 will position the company for sustained profitability in the face of reduced block rewards. This proactive approach showcases Riot’s forward-thinking mindset and determination to remain competitive in an evolving market.
Moreover, Riot has secured an option to purchase an additional 66,560 M56S++ miners from MicroBT, further bolstering its self-mining capacity by 15.3 EH/s. This option, valid until December 31, 2024, provides Riot with flexibility to adapt to market demands and potentially achieve a total hash rate capacity of 35.4 EH/s. Such an expansion in mining capacity not only ensures Riot’s long-term sustainability but also solidifies its position as a leading player in the Bitcoin mining ecosystem.
Beyond the immediate benefits for Riot, this partnership represents a milestone for the Bitcoin mining industry as a whole.
By collaborating with MicroBT for onshore manufacturing in the United States, Riot contributes to the establishment of a robust domestic supply chain, reducing reliance on international manufacturers and increasing domestically produced options for Bitcoin miners. The manufacturing of these cutting-edge miners at MicroBT’s Pittsburgh facility will create new highly skilled jobs, further fueling the growth of the industry within the United States.
In light of this significant order, Riot CEO Jason Les expressed excitement about the efficiency and power of the new miners, designed specifically for immersion cooling systems.
Les emphasized that the deployment of these state-of-the-art machines will strengthen Riot’s fleet efficiency and position the company for success ahead of the Bitcoin halving event.
As the Bitcoin mining landscape continues to evolve, Riot Platforms’ partnership with MicroBT marks a crucial step in the industry’s development. By securing a robust domestic supply chain and significantly expanding its self-mining capacity, Riot not only ensures its own profitability but also contributes to the growth and maturity of the Bitcoin mining industry as a whole.