When Mining Crypto Gets Tough, Buy Power. Riot Blockchain Buys More Processors

Riot Blockchain, a NASDAQ listed cryptocurrency mining company, announced yesterday that it had purchased an additional 1,000 next-generation Bitmain S19 Pro (110 TH) Antminers for $2.3 million from Bitmain.

Riot said that the purchase was funded using available working capital, and the Company has no long-term debt. Seemingly this could be an indication that Bitcoin’s recent halving is making the mining industry more competitive. At some point in the future, the total supply of Bitcoin will be produced. The supply is limited, which is a key design of Bitcoin to limit potential inflation.

Riot said. “The May 2020 halving, the third in the network’s history, means the mining reward has now been reduced from 12.5 bitcoins per block to 6.25 block rewards. Bitcoin miners continue to face pressure from the halving event which occurred in May 2020, as the event directly affected mining revenues. Mine operators that failed to upgrade to more efficient mining rigs and secure cheaper power may succumb to the negative effects of the halving event.”

In 2020, Riot has expanded its mining fleet and has focused on bitcoin mining.

By Q4 2020, without any further miner purchases, Riot estimates its aggregate operating hash rate to be approximately 567 petahash per second (“PH/s”) consuming 14.2 megawatts of power, assuming full deployment of the total 7,040 next-generation miners.