NEW YORK - Riot Platforms (NASDAQ: NASDAQ:RIOT) has announced an expanded collaboration with MicroBT Electronics Technology Co., LTD, marking a significant step in its strategic growth. The deal, valued at $290.5 million, involves the purchase of 66,560 M66S miners, which are recognized for their immersion-cooling technology that enhances efficiency at Riot's U.S.-based manufacturing operations.
The acquisition of these advanced miners, at a cost of approximately $16 per terahash (TH), is set to substantially increase Riot's self-mining capacity. The new miners boast an efficiency rating of 18.5 joules per terahash (J/TH), positioning the company to expand its hash rate capacity beyond 38 exahash per second (EH/s). This move is aligned with Riot's vertical integration strategy and is expected to drive cost-efficiency in future capital planning.
The rollout of the new mining technology is scheduled to commence in the first quarter of 2024 and continue through late 2025. Furthermore, Riot retains the option to acquire up to an additional 265,000 miners, which could propel its capacity beyond 100 EH/s.
This strategic expansion has been met with investor approval, as reflected by a surge in RIOT stock to $15 following the announcement.
Jason Les, CEO of Riot Platforms, expressed optimism about the company's direction and highlighted the benefits of vertical integration strategies, including in-house electrical switchgear engineering capabilities. These advancements come alongside ongoing expansions at the Corsicana Facility and Navarro site.
MicroBT’s Chief Operating Officer Jordan Chen also shared enthusiasm for the evolving partnership as they extend their manufacturing footprint in the United States. This collaboration supports Riot’s infrastructure platform objectives and solidifies their position in leading the Bitcoin mining sector.
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