Cryptocurrency Company Riot Blockchain Invested $35 Million

A cryptocurrency mining company made an interesting announcement on December 21. It is worth mentioning that, Riot Blockchain signed another deal with Chinese mining giant Bitmain to buy 15,000 Antminers.

Let’s get back to the announcement. According to the information provided by the company based in Colorado, it expects that the new purchase will contribute a 65% increase to its total Bitcoin mining hash rate. 

Interestingly, the company paid $35 million. The company will buy for that sum of money 3,000 S19 Pro Antminers and 12,000 S19j Pro Antminers. Based on the information provided by the company, it expects to receive and deploy the new miners starting from 2021 up to October 2021. 

Moreover, with the latest deal, Riot Blockchain further expands its total mining equipment from Bitmain. As a reminder, the Colorado-based has been regularly receiving and deploying new miners in 2020. For example, several months ago companies signed a $17.7 million purchase agreement. In total, the company will receive 8,000 Bitmain Antminer S19 Pros. Riot will receive 2,000 units on a monthly basis starting from January 2021.

Notably, the mining giant launched the Antminer S19 Pro earlier this year, with a hash rate of 110 terahashes per second. People should take into account that, at full deployments of more than 37,000 miners, the company estimates its total operational hash rate to surge from 2.3EH/s to 3.8EH/s, consuming about 120 megawatts of energy. 

Riot Blockchain and Bitmain

As stated above, as part of its partnership with Riot Blockchain, Bitmain continues to deliver its latest Antminers to the company. In October of this year, the mining giant and Riot announced a deal for 2,500 Antminer S19 Pro on top of the previous batch of 5,100 Antminers deal. As part of another deal mentioned earlier, Riot Blockchain will receive 8,000 Antminers. 

It is worth mentioning that, Bitmain is one of the world’s largest crypto hardware suppliers. Interestingly, in September Bitmain made an interesting announcement. According to this announcement, mining operator Core Scientific will become its first North American cooperative repair center. 

Previously, it also partnered with Foundry. As a reminder, Foundry belongs to a crypto mining subsidiary of Digital Currency Group. 

Importantly, Bitcoin is the most valuable cryptocurrency in the world. It is not surprising that cryptocurrency mining companies are willing to invest in new mining equipment. Moreover, Riot Blockchain is willing to spend millions of dollars to increase its total Bitcoin mining hash rate.