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Riot Platforms, Inc. has significantly expanded its Bitcoin mining operations by executing a large-scale purchase agreement with MicroBT Electronics Technology Co., Ltd.
This deal involves acquiring 66,560 latest-generation Bitcoin miners, supplementing a previous order of 33,280 miners.
$Riot Exercises Purchase Option on 18 EH/s of Latest Generation Immersion Miners from MicroBT, and Secures Additional Purchase Options Providing a Path to Exceed 100 EH/s.
— Riot Platforms, Inc. (@RiotPlatforms) December 4, 2023
– Riot places order for 18 EH/s of latest generation MicroBT Bitcoin miners, primarily consisting of the… pic.twitter.com/tEEudV6Z8n
The order, totaling $290.5 million, showcases Riot’s ambition to enhance its mining capacity to over 38 EH/s by H2 2025. Notably, this includes the M66S model, which boasts an efficiency of 18.5 Joules per terahash, signaling a move towards more energy-efficient mining practices. All units are to be manufactured in the United States, potentially mitigating geopolitical risks associated with overseas production.
Due to the volatile nature of the cryptocurrency market, significant investments like these can be precarious. The commitment to such a large-scale purchase locks Riot into a specific path, potentially limiting its flexibility in adapting to market changes.
The agreement with MicroBT also includes options for Riot to purchase up to 265,000 additional miners. This could elevate Riot’s capacity to over 100 EH/s, a figure that, while impressive, raises questions about the long-term sustainability of such rapid growth, especially in the context of environmental concerns and regulatory uncertainties surrounding the cryptocurrency industry.
Riot’s CEO, Jason Les, expressed optimism about owning and operating one of the most efficient Bitcoin (BTC) mining fleets worldwide. MicroBT’s COO, Jordan Chen, also echoed this sentiment, emphasizing the strong relationship between the two companies.