Due to the Bitcoin halving, Bitcoin miner Riot Platforms produced 215 BTC in May, a 43% decrease from last month
The decline in mining revenue is a direct consequence of the April 20 Bitcoin halving, which reduced the mining rewards to 3.125 BTC.
Riot anticipated this decline and organized an infrastructure upgrade to maintain Bitcoin production following the halving.
In May, Riot established a new Bitcoin mining facility in Corsicana, Texas, which increased its total self-mining capacity to 14.7 EH/s, a 17% increase from the previous month. The facility added 3.1 exahashes per second (EH/s).
The mining facility is currently operational at 100 megawatts (MW) and will ultimately expand to 1 gigawatt (1,000 MWs) upon completion of development.
Infrastructure development to support the expansion of hash rates
Riot’s objective is to achieve a total hash rate capacity of 31 EH/s by the conclusion of 2024 and 41 EH/s by 2025. To accomplish this, the organization executed a long-term master purchase agreement with MicroBT, which comprised an initial order of 33,280 miners for the new facility.
Riot’s strategies are designed to assure profitability, particularly during bear markets.
Credits for power and demand response
Jason Les, Riot’s CEO, clarified that the company implemented a novel approach in addition to upgrading to mining equipment that was highly efficient to reduce operational costs:
“Riot’s distinctive power strategy, which we typically implement most frequently during the summer months, has already begun to yield substantial results this year, with an estimated $7.3 million in power and demand response credits generated in May.”
Riot Platforms announced on May 28 that it would acquire Bitfarms, its competitor, at a substantial premium to its share price.
Riot was the most significant shareholder of Bitfarms at the time of the offer, with a 9.25% stake. As of May 24, the buyout proposal comprised a combination of cash and common stock, resulting in $950 million in equity value for shareholders. This represents a 24% premium over Bitfarms’ one-month volume-weighted average share price.
The offer is made at a time when Bitfarms’ administration is in a state of transition as it searches for a new CEO.
