Riot Platforms shares fell 0,5% this week despite unveiling plans for expansion in the United States.
Riot Platforms, one of the largest Bitcoin mining companies in the United States, has revealed its expansion plans to increase its mining capacity on the Bitcoin blockchain network by almost 40%.
The crypto mining company reported on a signed purchase agreement with ASIC mining equipment manufacturer, MicroBT Electronics Technology, to acquire 33.280 bitcoin miners manufactured in the United States.
The new ASIC equipment will add an additional 7,6 exahashes per second (EH/s) to Riot's mining capacity. According to the release According to the company, the 33.280 mining rigs will be delivered starting in December of this year and will be operational at its facilities located in Corsicana, Navarro County (Texas), in the first quarter of 2024, before the arrival of the next Bitcoin halving.
Riot Platforms is headquartered in the United States, in the state of Colorado, and is expanding into Texas. The company changed its name from Riot Blockchain to Riot Platforms earlier this year as part of its diversification and expansion process.
Boosting Bitcoin Mining by Dip
The ASIC mining equipment that MicroBT will manufacture for Riot Platforms is specially designed for immersion cooling systems, a type of crypto mining that offers great advantages by increasing the profitability of this activity.
Riot CEO Jason Les commented that the M56S+ and M56S++ models “are among the most powerful and efficient miners ever built for Bitcoin mining.” According to the manufacturer’s specifications, these ASICs ensure a Hash power of 220 TH/s and 230 TH/s and energy efficiency of 24 joules/TH and 22 joules/THrespectively.
On the other hand, Riot Platforms highlighted the possibility of expanding its purchase of ASIC miners from MicroBT in the future. According to the plans, The company could acquire another 66.560 M56S++ model mining rigs, which would give it another 15,3 EH/s of power on the Bitcoin network, almost double the hash rate that Riot will operate next year.
In total, this amount of new equipment would boost Riot Platforms' Bitcoin mining capacity to 35,4 EH/s, the company said.
What is immersion mining?
Immersion mining is a form of crypto mining that involves immersing equipment in mineral oil. It is a more efficient and cost-effective way to mine cryptocurrencies, especially in hot climates or jurisdictions where energy costs are high.
Earlier in May, American bitcoin mining company Marathon Digital Holdings also announced expansion plans, choosing Abu Dhabi as a destination to open a new facility. Despite Abu Dhabi's unattractiveness for bitcoin mining, due to its high-temperature desert environment, Marathon Digital is determined to take advantage of the emirate's energy surplus through liquid immersion mining.
MicroBT expands its business to the United States
Meanwhile, Bitcoin mining hardware manufacturer MicroBT is opening manufacturing subsidiaries in the United States, specifically in the city of Pittsburgh, Allegheny County, Pennsylvania, to ensure the production of next-generation ASIC miners in the country and the region.
In the statement, Les highlighted that their agreement with MicroBT goes beyond the purchase of equipment and that it is a strategic alliance to boost the domestic production of ASIC miners on US soil. “The new partnership between Riot and MicroBT will ensure a strong domestic supply chain in the United States,” Les commented. With this, Riot Platforms seeks to expand the options for mining farms and data centers in the country and its surroundings, in addition to marking a new milestone for crypto as an industry that generates employment and economic growth.
MicroBT is expanding into the United States at a time when Bitcoin mining is gaining increasing interest in the country for its potential to stabilize energy networks.
Texas A&M University published a study in late May detailing how Bitcoin mining has proven to have a great potential for flexibility in energy demand, which contributes to the stability and reliability of the power grid.
Continue reading: Riot Blockchain to boost Bitcoin mining by adding 1 GW of power from Texas
