Riot Blockchain recently announced that it had concluded another deal with Bitmain. According to that, for $6.1 mil, 2,500 additional Bitcoin mining-chips are to become active by the end of 2020.
The company aims to achieve a hashrate of 842 PH/s on the Bitcoin network by the end of the year. A rate of 2.3 EH/s is expected by mid 2021.
Despite stagnating Bitcoin prices and the growing utilisation of the Ethereum network, Riot is focusing on Bitcoin and is constantly expanding its mining equipment.
Riot Blockchain is expanding its mining activities despite the current stagnation of Bitcoin prices. To this end, the company recently completed a $6.1 million contract with Bitmain for 2,500 S19 Pro Antminers. Operations are expected to commence before year-end in December. Over the last few months, Riot has been continuously purchasing S19 Miners. Further major expansions are planned until mid 2021.
Riot may soon be mining-company with highest hashing-capacity
Riot Blockchain from Colorado focuses all its activities on the mining of Bitcoin. To this end, Riot is continuously expanding its mining hardware and securing the most energy-efficient miners. It also holds shares in a number of other blockchain technology companies.
With the new mining chips, the company hopes to achieve a hashrate of 842 PH/s by the end of the year. This corresponds to 842 quadrillion hashes per second. A total of 9,540 miners should be used for this by the end of 2020. The new values exceed Riot’s previous estimate by about 50%.
The company’s target is to achieve a rate of 2.3 EH/s by June 2021. One EH/s equals one trillion hashes per second. By comparison, the total hash rate of the Bitcoin network is currently approximately 135 EH/s. A total of 22,640 mining chips are planned for the expansion. To this end, a deal with Bitmain for 13,100 S19-Pro Miner was already concluded in August.
According to current information, Riot would thus achieve the highest hashing capacity of all listed mining companies. The vast majority of the chips used will then already correspond to the next technical generation S19-Pro. All purchases are financed with pure working capital from Riot.
Maximum efficiency through strong partnership
Riot calculates that at a hashrate of 2.3 EH/s, energy consumption will be around 73 megawatts. In the 3rd quarter of 2020, the company transferred its mining equipment to Coinmint. This had a significant impact on the reduction of energy and operating costs. In the report published by Riot, the company stated:
„At full deployment, Riot expects to achieve 2.3 EH/s of total hash rate capacity by utilizing 73 megawatts of energy. This would result in Riot having an overall operational efficiency of approximately 32.33 ±% 5 joules per terahash (J/TH).“
Coinmint operates a digital currency data centre in New York. Mainly with hydro and wind power generation a transformer capacity of approximately 435 MW is ensured. Coinmint also has a strong electro-economic advantage through its experience in the wholesale electricity markets.
Despite the booming DeFi market and the resulting high mining returns on Ethereum, Riot will continue to mine Bitcoin. Even the recently somewhat stagnant prices do not prevent the company from investing millions in the mining business.