Riot Platforms, a U.S.-based company that operates Bitcoin mining facilities, has announced that it has purchased 42,000 S19j Antminers from Bitmain, a leading manufacturer of cryptocurrency mining hardware. The deal is worth $138.5 million and will increase Riot’s total hash rate capacity to 7.7 exahashes per second (EH/s) by October 2022.
The purchase comes at a time when Bitcoin is undergoing its third halving, a process that reduces the amount of new coins generated by the network every 10 minutes. The halving is expected to increase the difficulty and cost of mining, as well as the demand and price of Bitcoin. Riot Platforms aims to capitalize on this opportunity by expanding its mining operations and securing a larger share of the Bitcoin network.
According to Riot’s CEO, Jason Les, the company is “focused on increasing our Bitcoin mining hash rate while simultaneously enhancing our balance sheet” and believes that “completing this long-term purchase agreement with Bitmain is a major milestone in the continued growth of Riot’s mining operations”.
Riot Platforms is not the only company that is investing in Bitcoin mining amid the halving. Marathon Patent Group, another US-based Bitcoin mining firm, has also ordered 10,500 S19 Pro Antminers from Bitmain, which will boost its hash rate capacity to 2.56 EH/s by July 2021. Additionally, Core Scientific, a blockchain hosting provider, has partnered with Bitmain to facilitate the delivery and installation of 17,595 S19 Antminers across its US data centers.
The increased demand for Bitcoin mining equipment shows that the industry is optimistic about the future of the cryptocurrency, despite the challenges posed by the halving. As more miners join the network, the security and decentralization of Bitcoin will also improve, making it more attractive for investors and users.