Bitcoin mining firm Riot Blockchain has been doing some impressive work so far, gearing up for what appears to be a massive expansion project. As part of the expansion, the firm announced earlier this week that it had purchased a fleet of rigs from crypto mining equipment manufacturer Bitmain.
Business with Bitmain
According to a company announcement from Tuesday, Riot confirmed that it had purchased 2,500 Bitcoin S19 mining rigs from Bitmain. The firm explained that it paid $6.1 million for their delivery and deployment, with the final installation set for December.
Riot confirmed that the new delivery would increase its hash rate from the current 500PH/s level to about 2.3 EH/s by June 2021. To help with its expansion, the firm has developed a cordial relationship with Bitmain, maintaining this relationship through strategic partnerships throughout the year.
The NASDAQ-listed company last purchased a mining rig in August, buying 5,100 Antminer S19 Pro miners from Bitmain. Riot paid $11.2 million for the miners, adding that the miners will be deployed by February.
In its press release, Riot added that it expected to achieve positive cash flow by the end of the year and reach 0.55 EX/s by the same period.
Remo Mancini, Riot Blockchain’s independent chairman, said:
“We are believers in Bitcoin’s opportunity to be a disruptive force in the traditional finance and currency systems. Riot is making strides in positioning itself to be a part of that future, and this purchase is a hallmark of those efforts.”
Full Steam Ahead
Its expansionary efforts are coming off a pretty tense year for the mining industry, after several firms had to find ways to cut costs and stay solvent amid the global pandemic. In May, the company filed its annual 10-k report with the United States Securities and Exchange Commission (SEC), explaining that it had seen a significant disruption in operations due to the pandemic and the subsequent lockdown on both international transport and local movement.
“If we are unable to effectively service our miners, our ability to mine bitcoin will be adversely affected as miners go offline, which would have an adverse effect on our business and the results of our operations,” the report said in part.
Riot added that product shipment within and outside China had decreased, meaning that it won’t be able to connect with suppliers and make repairs. While it had made efforts to get classification as an essential entity in several jurisdictions, these efforts largely failed. So, company officials could not access their offices and mining facilities as municipalities shut down.
Now that things appear to have stabilized, the firm is currently moving quickly with its expansion plans. As the original press release showed, this purchase is the fifth from Bitmain alone to happen this year. With the mining space beginning to pick up once more, Riot is placing itself in the right position to benefit.