Bitcoin mining company Riot Platforms saw a notable drop in production for May, generating just 215 BTC—a decline of 43% compared to April. This reduction in output is primarily attributed to the impact of the April 20 Bitcoin halving event, which cut mining rewards down to 3.125 BTC per block. In anticipation of this, Riot had strategically planned to upgrade its infrastructure to sustain its Bitcoin production levels following the halving.
In May, Riot launched a brand-new Bitcoin mining facility in Corsicana, Texas. This new facility significantly bolstered Riot’s mining capabilities, adding 3.1 exahashes per second (EH/s) to the company’s overall capacity. With this addition, Riot’s total self-mining capacity now stands at 14.7 EH/s, marking a 17% increase from the previous month. The new infrastructure currently operates at 100 megawatts (MW) but has the potential to scale up to 1 gigawatt (1,000 MW) once fully completed.
Riot has ambitious goals for growth in its hash rate capacity, aiming to reach a total of 31 EH/s by the close of 2024 and 41 EH/s by 2025. To achieve these targets, the company has entered into a long-term master purchase agreement with MicroBT. The agreement includes an initial purchase of 33,280 new mining units specifically for the Corsicana facility. These strategies are designed to keep the company profitable, even during market downturns.
Aside from hardware upgrades, Riot has implemented a unique power strategy to enhance operational efficiency. According to Jason Les, CEO of Riot, this strategy primarily involves optimizing power usage during the summer months. He noted that the approach has already yielded impressive results this year, generating approximately $7.3 million in power and demand response credits for May alone.
In a significant move to expand its market presence, Riot Platforms announced an offer on May 28 to acquire its rival, Bitfarms. At the time of the announcement, Riot was already the largest shareholder in Bitfarms, holding a 9.25% stake. The proposed acquisition deal includes both cash and common stock, valuing Bitfarms’ equity at $950 million, which represents a 24% premium over the company’s one-month volume-weighted average share price as of May 24.
The acquisition offer comes during a transitional period for Bitfarms, as the company is in the process of searching for a new CEO. This period of change could provide Riot with an advantageous position should the acquisition go through. The buyout is aimed at strengthening Riot’s foothold in the Bitcoin mining industry by combining the resources and expertise of both companies.
Despite the challenges posed by the halving event and market fluctuations, Riot Platforms continues to push forward with its strategic initiatives and infrastructure upgrades. The company’s proactive measures, from new facility launches to power efficiency strategies, demonstrate its commitment to maintaining and growing its Bitcoin production capabilities.
While May brought a reduction in mining output for Riot Platforms, the company remains focused on long-term growth and profitability. With new facilities, strategic acquisitions, and innovative power strategies in place, Riot is well-positioned to navigate the evolving landscape of the Bitcoin mining industry.
Such a visionary move to acquire Bitfarms! This is going to be huge for Riot.
A remarkable step to acquire Bitfarms! This will definitely strengthen their market presence. 🌐🔝
I cant believe Riot Platforms saw such a massive drop in BTC production! A 43% decline is pretty alarming, especially with all the money theyve poured into new facilities.
Despite the challenges, Riot Platforms are proving they can adapt and excel. Exciting times ahead!
Jason Les claiming their power strategy was successful seems laughable when they still saw such a big drop. Maybe they should focus more on their actual mining efficiency?
All these big moves and strategic initiatives sound like smoke and mirrors. When will they start delivering actual consistent results?
Riots new power usage strategy is a game-changer in the industry. Kudos to the innovative thinking!
Great job, Riot! Even with the halving event, the company’s strategic moves will keep them ahead.
The market is already volatile. Riot’s massive production hit doesn’t instill any confidence that they can weather the storm.
A 24% premium on Bitfarms’ share price shows Riot’s commitment to expansion. Excited for whats to come!
Their approach to power efficiency and facility expansion is truly inspiring. Excellent work, team Riot!
👏 Impressive resilience and forward-thinking strategies! Riot is turning challenges into opportunities. 🚀
Wow, scaling up to 1 gigawatt in the new facility sounds amazing! Can’t wait to see Riot redefine Bitcoin mining.
Riot’s strategic initiatives and growth plans are setting new standards. Keep making strides!
Riot’s proactive approach to the halving and power strategy is truly remarkable. Congrats on the success!
New mining facility in Texas or not, this drop is a huge red flag. High hopes and fancy plans wont change the fact theyre underperforming.
Their new facility in Corsicana is a testament to Riot’s dedication to remaining at the forefront of the industry.
Riot Platforms continues to amaze with their innovative approach and resilience. Big things ahead!