See More

Riot Leans Into Bitcoin Halving Cycle With $163M BTC Miner Purchase

2 mins
Updated by Kyle Baird
Join our Trading Community on Telegram

In Brief

  • Riot Blockchain expands self-mining capacity ahead of the 2024 Bitcoin halving, strengthening its market position.
  • Its agreement with MicroBT lays down a schedule for delivery of the Bitcoin miners starting in December 2023.
  • Coinbase highlights the uncertain impact of the next Bitcoin halving, and expects that Bitcoin ETF approvals could inject liquidity.
  • promo

Crypto miner and data center host Riot Blockchain makes a significant move by entering into a long-term purchase agreement with MicroBT Electronics Technology. The deal entails Riot’s acquisition of 33,280 next-generation Bitcoin miners in the United States at a total cost of $162.9 million.

The purchase aims to bolster Riot’s self-mining capacity and enhance its fleet efficiency ahead of the next Bitcoin halving.

Riot Bitcoin Mining Expands Capacity

Riot’s agreement with MicroBT lays down a schedule for delivery of the Bitcoin miners starting in December 2023. The statement confirms the deployment of these new miners in the first quarter of 2024.

Once fully deployed, Riot’s self-mining hash rate capacity is anticipated to increase to 20.1 EH/s. It marks a substantial expansion in its mining capabilities.

The initial order consists of the M56S+ and M56S++ models, both known for their exceptional power and efficiency in Bitcoin mining. Riot has also secured the option to purchase up to 66,560 additional miners under the agreement.

The purchase will strengthen the company’s position before the upcoming Bitcoin halving event.

Furthermore, the partnership between Riot and MicroBT boasts of it as an important milestone for the industry. It establishes a domestic supply chain in the US.

Will the Bitcoin Halving Impact Mining?

Riot CEO, Jason Les, expressed his enthusiasm about the collaboration, emphasizing the significance of these cutting-edge miners and their compatibility with Riot’s immersion cooling systems. He also highlighted the positive impact on fleet efficiency and Riot’s readiness for the upcoming Bitcoin halving.

The next Bitcoin Halving is slated for April 2024, with about 43,800 blocks remaining for the event. It will reduce the block reward to 3.125 BTC from its current 6.25 BTC.

Learn how to mine crypto from the beginning here: How To Mine Cryptocurrency: A Step-by-Step Guide

MicroBT COO Jordan Chen echoed the sentiment while praising the technological advancements achieved by their engineering teams with the powerful M56S+ and M56S++ miners. Chen also highlighted the importance of manufacturing machines in the United States, which will expand their operations and create new job opportunities.

While Riot is poised to make significant strides in the domestic market, another North America-based mining company recently secured a $50 million loan. Hut 8 entered a credit facility with Coinbase Credit to include a $15 million term loan and options to borrow an additional $20 million and $15 million to support operations.

The company is also looking at a potential merger with US Bitcoin Corp.

2024 An Uncertain Horizon

Coinbase has recently stated that the impact of the 2024 Bitcoin halving on the market is uncertain. The argument is based on Bitcoin’s shallow liquidity and the strength of the U.S. dollar.

But, the company suggests that the approval of Bitcoin ETFs could inject much-needed liquidity into the market. At least five major firms have applied for their respective Bitcoin-based ETFs. 

At press time, Bitcoin remains resilient above the $30,000 mark after muted performance on the daily and hourly charts.

Meanwhile, Bhutan and Kenya are emerging as promising destinations for renewable energy-based mining operations.

Top crypto projects in the US | April 2024

Trusted

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

shraddha_sharma.jpg
Shraddha Sharma
Shraddha is an India-based journalist who worked in business and financial news before diving into the crypto space. As an investment enthusiast, she has also has a keen interest in understanding crypto from a personal finance standpoint.
READ FULL BIO
Sponsored
Sponsored