Bitcoin Mining Company Riot Blockchain Buys Bitmain Miners for $ 138.5 Million


Bitcoin mining company Riot Blockchain announced that it signed a $ 138.5 million deal with mining giant Bitmain Technologies Limited for the purchase of 42,000 S19j Antminers on April 7.

The large-scale contract for Riot Blockchain's new fleet of Bitcoin mining equipment essentially represented a major step forward in its strategic initiative to increase its BTC mining hash rate.

According to the official press release of the Bitcoin mining company, after the full rollout, it was now estimated that its hash rate would increase. 7.7 exahash per second (EH / s).

With the latest purchase, Riot will have a fleet of almost 81,150 Antminers95% of which will be the next-generation S19 series model. Delivery of the new miner lots will begin later this year.

Following Bitmain's new order for Next Generation Antminers, Irene Gao, Antminer Sales Director of the NCSA region, from the Chinese ASIC maker, said:

"We are excited about our long-term cooperation with Riot as they continue to solidify their growth and position as one of the world's leading Bitcoin mining companies."

Riot nearly doubles its Bitcoin hash rate capacity

The S19j runs essentially at 90 TH / s and uses 3100 watts of power. With all miners fully deployed, the mining company's total fleet is estimated to consume nearly 257.6 megawatts (MW) of energy with a total hash rate efficiency of 33 joules per tera-hash (J / TH).

The riots also revealed that the current level of growth represents a 93% increase over its previously estimated committed hash rate capacity of 4.0 EH / s for October 2021.

Riot's existing fleet of miners helped the company position itself as one of the crucial players in the Bitcoin mining space in the United States. Commenting on the continued expansion of Riot's mining operations and nearly doubling its planned hash rate capacity, its chief operating officer, Megan Brooks, was quoted as saying:

“Riot continues to make leaps and bounds in growing the Company's and the US's share of the global network hash rate. We are proud of this achievement and remain focused on continuing to evaluate additional opportunities in the space. "

Riot shares plummet

Despite the latest development, Riot shares, which are traded on the NASDAQ, were down nearly 5% in the latest trading close on Wednesday. On the other hand, RIOT's share price continued to fall more than 4% in the current trading session of the market.

Bitcoin Hash Rate Hits ATH Once Again

The network's hash rate Bitcoin it had set a new peak of 179.4 exa hashes per second on April 6. This was according to the charts compiled by Coin Metrics.

One of the obvious reasons for the hash rate increase was Bitcoin's impressive bull run that started in the last quarter of 2020 and its amplification to this day. Even when it failed to break above $ 61K, Bitcoin managed to stay afloat above $ 55K for the longest time.

Another factor that could have triggered the ATH was the fact that old mining devices that were previously considered obsolete now generate huge profits for their owners.

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