- Riot announced its largest hashrate purchase, with 18 EH/s supplied from MicroBT.
- The cost of 66,560 latest generation M66S model BTC miners is $290.5 million.
- Riot’s stock price rose following this news, trading above $15 on Monday, December 4th.
Bitcoin mining company Riot Platforms, Inc. (NASDAQ: RIOT) announced the purchase of more than 66,000 miners from Bitcoin mining hardware manufacturer MicroBT.
This purchase adds to the 33,280 miners Riot secured in previous contracts. Riot CEO Jason Les said it was the company’s largest to date. press release.
Riot Purchases 18 EH/s Miner from MicroBT
According to the mining company, the new order is for 66,560 units of MicroBT’s M66S model, a recently announced miner that boasts an efficiency rating of 18.5 J per terahash. The total cost for miners is $290.5 million, with an average price per TH of around $16.
Riot also said it was updating its long-term purchase agreement with MicroBT, giving miners the option to acquire up to 265,000 additional miners. These purchases are subject to the same terms and conditions as newly announced orders.
“The price of these future purchase options will not exceed the current orders announced today, allowing Riot to better plan for future capital requirements and protect miners from potentially higher market prices in the future.” said Les.
A batch of 33,280 MicroBT miners is expected to take place in the first quarter of 2024, and deliveries for the just announced batch are scheduled to begin in the second half of next year. Riot expects both orders to fully ship in the second half of 2025, with the company’s total self-mined hashrate exceeding 38EH/s.
If Riot completes its future purchase, it will gain an additional 75 EH/s and increase its own mining capacity to over 100 EH/s.
RIOT Price Soars as Bitcoin Soars Above $40,000
News of Riot’s strategic purchases and expansion plans appear to have won investors over. As of Monday afternoon, shares of the mining company were up 8% on the day and nearly 24% last week.
RIOT rose 345% year-on-year to $15.07. However, in July 2023, it reached a high above $20, and in February 2021, it reached an all-time high above $79.50. Although the price is currently down significantly from ATH, the bullish outlook for Bitcoin could push the RIOT rally higher.
Bitcoin price on Monday reached $42,000, its first high since April 2022.