Riot Blockchain, a Nasdaq-listed Bitcoin mining firm, has purchases 5,100 Bitmain S19 Pro Antminers that are set to be deployed by February 2021.
Riot continues its operational growth, and the purchase may lead to a gain of hashrate by 1.66%. Riot had a goal of miner expansion, which matched with Bitmain’s increased production capacity. There is a recent order to 8000 S19 pros, which means there is a total of 13,100 miners scheduled to be deployed by the end of the first half of 2021. A large amount of order made the company to get better pricing per unit. Riot got a better deal from $17.7 million to $17.5 million with 8000 S19 Pros.
Riot expects growth in the cash flow in the last quarter of 2020 to push it to a hash rate of 0.55 EX/s by the end of the year. So far, Riot does more than 0.35 EX/s hash power, which accounts for 0.3% of the global hash rate.
Riot is working on deploying more than 20,000 ASICs by June 2021 to give an operational hashrate of 2EX/s. So far, Riot has 4000 Antminer S17Pros and 2000 S10 Pros that are operated by Coinmint in New York. The new miners will push the hashing power to approximately 0.55 EX/s. Riot Blockchain is planning to deploy 1000 S19s that it purchased earlier in the year.
Riot is optimistic about its growth as there is no other bitcoin mining company that can match is hash rate deployment. At full capacity, Riot expects to triple the hash rate by mid next year.
Remo Mancini, Riot Blockchain’s chairman, highlighted that the company is committed to bitcoin mining as it believes it’s a disruptive force of the traditional finance system.
Riot is making the purchases from its working capital while ensuring it has no debt. It collaborates with XMS Capital to evaluate the bitcoin landscape to assess opportunities to give more value.
On the other hand, Riot is in partnership with Coinmint to disrupt bitcoin mining in North America. Coinmint ensures there is sufficient power supply for mining. The majority of bitcoin mining happens in Asia, but there is a sudden shift of mining in North America. Increasing the hashrate in North America will make a big difference. Coinmint produces 435MW, which is the largest supplier of power in North America.
Riots purchase of the new machines is in the quest for increasing production efficiency, and there is so much hope soon.