RIOT buys next-generation bitcoin miners from Chinese company MicroBT

RIOT buys next-generation bitcoin miners from Chinese company MicroBT

Riot Platforms, a leading company in Bitcoin (BTC) mining and data center hosting, has made a significant deal with MicroBT Electronics Technology, a bitcoin miner manufacturer based in China.

This deal is a major long-term purchase agreement in which Riot will acquire 33,280 next-generation Bitcoin miners from MicroBT, which are manufactured in the United States.

 

These miners will be exclusively produced by MicroBT for Riot’s Corsicana Facility, leading to a significant increase in Riot’s self-mining capacity. With a total consideration of $162.9 million, excluding taxes and fees, and an average cost of around $21.50 per terahash (TH), this deal holds great potential for Riot’s future.

Delivery of the new miners is expected to start in December 2023, with deployment planned for Q1 2024. Once the 33,280 miners are fully deployed, which is estimated to happen by mid-2024, Riot’s self-mining hash rate capacity will reach an impressive 20.1 EH/s.

Riot has also obtained an option to purchase an additional 66,560 miners from MicroBT, further solidifying their position as a mining powerhouse. This option, available under the same favorable terms as the initial order, gives Riot the opportunity to potentially achieve a remarkable self-mining capacity of 35.4 EH/s.

Riot’s CEO, Jason Les, expressed his excitement and anticipation for this collaboration, stating that “Riot is thrilled to begin this significant alliance with MicroBT for onshore manufacturing. This agreement represents a crucial milestone for our business as it secures a vital supply chain for our operations.”

MicroBT’s COO, Jordan Chen, also expressed enthusiasm about this major order from Riot, highlighting the substantial technological advancements achieved by their engineering teams.

He further explained the impact of this order on MicroBT’s operations, including the expansion of their manufacturing business in the United States, the creation of new job opportunities, and the training of highly skilled staff members to meet the growing demand for their US-based manufacturing services.

The partnership between Riot and MicroBT sets the stage for a promising future in the Bitcoin mining industry, with increased self-mining capacity, a strong domestic supply chain, and the use of cutting-edge technology for optimal performance and efficiency.

Compiled by Coinbold

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