Riot Platforms, Inc. (NASDAQ: RIOT), a leading company in the Bitcoin (BTC) mining and data center hosting industry, announced today the signing of a long-term purchase agreement with MicroBT Electronics Technology Co., LTD and its manufacturing subsidiaries.
MicroBT, a renowned manufacturer of Bitcoin miners with production facilities in the United States, will provide Riot with 33,280 next-generation Bitcoin miners as part of the initial order. The agreement represents a significant move for Riot, solidifying its position in the market. The total value of the order, excluding taxes and fees, amounts to $162.9 million, with an approximate cost of $21.50 per terahash (TH).
Delivery of the new miners is scheduled to commence in December 2023, and deployment is expected to begin in the first quarter of 2024. Once the full deployment of the ordered miners is completed, projected to be achieved by mid-2024, Riot’s self-mining hash rate capacity will surge to 20.1 EH/s.
The initial order comprises a combination of two models: M56S+ with 8,320 units, providing a hashrate of 220.0 TH/s and an efficiency of 24.0 joules per terahash (J/TH), and M56S++ with 24,960 units, delivering a hashrate of 230.0 TH/s and an efficiency of 22.0 J/TH. In total, the initial order represents 33,280 units, equating to a weighted average hashrate of 7.6 EH/s and an efficiency of 22.5 J/TH.
Under the agreement, Riot has also secured an option to purchase an additional 66,560 M56S++ miners from MicroBT on the same terms as the initial order. If exercised in full by December 31, 2024, this option would augment Riot’s self-mining capacity by 15.3 EH/s, potentially reaching a total of 35.4 EH/s.
Jason Les, CEO of Riot, expressed his enthusiasm about the partnership with MicroBT, stating, “Riot is excited to announce our first order of Bitcoin miners for our Corsicana Facility from MicroBT. These new models are among the most powerful and efficient miners ever made for Bitcoin mining and are designed and produced specifically for immersion cooling systems, such as those that will be used at our Corsicana Facility.” Les also highlighted the positive impact the new miners will have on Riot’s self-mining capacity and efficiency, further strengthening their position in the market.
Moreover, the partnership between Riot and MicroBT holds strategic significance, as it bolsters the domestic supply chain for Bitcoin miners in the United States. This development opens up more options for domestically produced mining equipment and represents a significant milestone for the industry. MicroBT will manufacture the miners at a facility in Pittsburgh, PA, leading to the creation of new, highly skilled jobs in the local area.