2024

Bitcoin

April

Bitcoin (<a href="https://cointelegraph.com/bitcoin-price" rel="noopener noreferrer nofollow">BTC</a>) miner Riot Platforms produced 215 BTC in May, a 43% decrease from last month.
The decrease in mining revenue is a direct impact of the <a href="https://cointelegraph.com/news/bitcoin-halving-2024" rel="noopener noreferrer nofollow">April 20 Bitcoin halving</a> on the mining industry, which halved the mining rewards to 3.125 BTC.
Anticipating this decline, <a href="https://cointelegraph.com/news/riot-platforms-add-bitcoin-miners-ahead-of-2024-halving" rel="noopener noreferrer nofollow">Riot preplanned an infrastructure upgrade</a> to retain Bitcoin production post-halving.
In May, Riot launched a new Bitcoin mining facility in Corsicana, Texas, which added 3.1 exahashes per second (EH/s), bringing Riot’s total self-mining capacity to 14.7 EH/s — a 17% increase from the previous month.
<figure><img src="https://s3.cointelegraph.com/uploads/2024-06/9bb6371b-674d-477e-b1c0-60c39b029693.png">
 <figcaption style="text-align: center;">Source: <a href="https://x.com/RiotPlatforms/status/1797977535462146370" target="_blank" rel="noopener noreferrer nofollow">Riot Platforms</a>
 </figcaption>
</figure>
The mining facility currently operates at 100 megawatts (MW) and will eventually scale up to 1 gigawatt (1,000 MWs) once fully developed.
<h2 id="infrastructure-development-for-hash-rate-growth">Infrastructure development for hash rate growth</h2>
Riot aims for a total hash rate capacity of 31 EH/s by the end of 2024 and 41 EH/s by 2025. To do this, the company entered into a long-term master purchase agreement with MicroBT, which included an initial order of 33,280 miners for the new facility.
<figure><img src="https://s3.cointelegraph.com/uploads/2024-06/bd5b2eac-f28b-4fe4-bf1b-07741650b3ad.png">
 <figcaption style="text-align: center;">Riot Platforms infrastructure development roadmap. Source: <a href="https://www.riotplatforms.com/riot-announces-may-2024-production-and-operations-updates/" target="_blank" rel="noopener noreferrer nofollow">Riot Platforms</a>
 </figcaption>
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The strategies employed by Riot are devised to ensure profitability, especially during bear markets.
<h2 id="power-and-demand-response-credits">Power and demand response credits</h2>
In addition to upgrading to highly efficient mining equipment to lower operational costs, Riot also employed a new strategy, Jason Les, CEO of Riot explained:
“Riot’s unique power strategy, which we typically employ most actively in the summer months, has already started to demonstrate significant results for this year, generating approximately $7.3 million in power and demand response credits in May.”
<figure><img src="https://s3.cointelegraph.com/uploads/2024-06/54860513-a039-4f64-a02b-740794e0a576.jpeg">
 <figcaption style="text-align: center;">Bitcoin Production and Operations Updates for May 2024. Source: <a href="https://www.riotplatforms.com/riot-announces-may-2024-production-and-operations-updates/" target="_blank" rel="noopener noreferrer nofollow">Riot Platforms</a>
 </figcaption>
</figure>
Related: <a href="https://cointelegraph.com/news/bitcoin-halving-impact-bitfarms-mining-rewards" rel="noopener noreferrer nofollow">Bitcoin halving sees Bitfarms’ BTC mining earnings plummet</a>
On May 28, Riot Platforms announced an offer to buy its competitor, Bitfarms, at a significant premium over its share price.
At the time of the offer, Riot was already Bitfarms' largest shareholder, holding a 9.25% stake. The buyout proposal included a <a href="https://cointelegraph.com/news/riot-platforms-bitfarms-acquisition-950m-offer" rel="noopener noreferrer nofollow">combination of cash and common stock, amounting to $950 million</a> in equity value for shareholders, which represents a 24% premium over Bitfarms’ one-month volume-weighted average share price as of May 24.
The offer comes at a time when Bitfarms’ management is in transition as it seeks a new CEO.
Magazine: <a href="https://cointelegraph.com/magazine/crypto-voters-are-already-affecting-the-2024-presidential-election/" rel="noopener noreferrer nofollow">Crypto voters are already disrupting the 2024 election — and it’s set to continue</a>

Bitcoin halving impacts miner Riot’s revenue by 43% despite new facility

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Cointelegraph

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