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Riot Platforms boosts mining capacity with $97.4 million hardware purchase

EditorIsmeta Mujdragic
Published 02/27/2024, 09:08 AM

CASTLE ROCK, Colo. - Riot Platforms, Inc. (NASDAQ: NASDAQ:RIOT), a prominent player in Bitcoin mining, has announced the acquisition of 31,500 WhatsMiner M60S miners from MicroBT, a leading manufacturer of Bitcoin mining hardware. The purchase, totaling $97.4 million, is part of Riot's strategy to enhance its self-mining operations and increase efficiency at its Rockdale Facility.

The new miners, featuring an efficiency of 18.5 J/TH, are expected to increase the facility's hash rate capacity from 12.4 EH/s to 15.1 EH/s by the end of July 2024. Riot's CEO, Jason Les, stated that the upgrade aims to replace underperforming machines and boost operational efficiency with the latest generation of miners.

Approximately 14,500 units from this order will expand Riot's self-mining capacity, while the remaining 17,000 will replace older, less efficient miners. The company anticipates that the full deployment of the new hardware will contribute to its goal of achieving a 31 EH/s hash rate capacity by year-end 2024.

MicroBT's COO, Jordan Chen, expressed enthusiasm for the continued partnership with Riot, noting the significance of this order for Riot's long-term goal of constructing a mining fleet with a capacity exceeding 100 EH/s.

This information is based on a press release statement from Riot Platforms, Inc.

InvestingPro Insights

As Riot Platforms, Inc. (NASDAQ: RIOT) embarks on expanding its Bitcoin mining operations with a significant hardware acquisition, investors are closely monitoring the company's financial health and market performance. According to InvestingPro data, Riot holds a market capitalization of approximately $4.4 billion, reflecting its standing in the industry. Despite a challenging P/E ratio currently standing at -60.78, analysts are optimistic about the company's sales growth in the current year, which aligns with Riot's strategic investments to bolster its mining capabilities.

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InvestingPro Tips suggest that Riot's decision to hold more cash than debt on its balance sheet could offer the company a stable foundation to navigate the volatile cryptocurrency market. Additionally, the company's significant return over the last week, month, and three months indicates strong investor confidence following recent strategic moves. These metrics could be pivotal as Riot aims to achieve a 31 EH/s hash rate capacity by the end of 2024, signaling potential for long-term growth.

For investors seeking more comprehensive analysis, there are 16 additional InvestingPro Tips available for Riot Platforms, Inc., which can be accessed at Utilize the coupon code PRONEWS24 to receive an extra 10% off a yearly or biyearly Pro and Pro+ subscription, and gain deeper insights into Riot's financial trajectory and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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