Riot Purchases 18 EH/s And Secures Long-Term Supply Of Hash Rate From MicroBT For $290.5M
Portfolio Pulse from Benzinga Newsdesk
Riot Platforms, Inc. (RIOT) has executed a purchase option with MicroBT to acquire 66,560 latest generation Bitcoin miners, totaling 18 EH/s, for $290.5 million. This order includes the M66S model and adds to a previous order of 33,280 miners. Deliveries will start in Q1 2024 and continue through H2 2025, with Riot's self-mining hash rate capacity expected to exceed 38 EH/s. Riot also secured options to purchase up to 265,000 additional miners, potentially increasing capacity to over 100 EH/s. The agreement provides a fixed price ceiling, aiding in future capital planning and market price protection.
December 04, 2023 | 2:03 pm
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Riot Platforms' significant investment in Bitcoin mining hardware from MicroBT positions the company for substantial growth in mining capacity. The fixed price ceiling for future purchases provides cost certainty and could be seen as a strategic move to mitigate risks associated with price volatility in mining equipment.
The news directly pertains to Riot Platforms, as it details their significant investment and strategic planning for future growth in Bitcoin mining. The fixed price ceiling for additional purchases is a positive development, as it provides cost certainty and protection against price volatility. This could be viewed favorably by investors, potentially leading to a short-term positive impact on RIOT's stock price.
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