Riot Platforms buys over 33K bitcoin miners for $163M

Riot Platforms ( NASDAQ: RIOT ) is poised to boost its bitcoin ( BTC-USD ) mining capacity after agreeing to purchase an initial order of 33,280 bitcoin mining machines for its Corsicana facility from MicroBT Electronics Technology, it said Monday. The miners will be produced by MicroBT in the U.S. for a total price of $162.9M (exclusive of applicable taxes and fees and adjustments), equating to around $21.50 per terahash. Delivery of the new miners -- comprised of M56S+ and M56S++ models -- is expected to start in December, with miner deployment planned for Q1 2024. Full deployment is anticipated to be completed by mid-2024. Riot ( RIOT ) said it sees its self-mining hash rate capacity increasing to 20.1 exahash per second (EH/s). As of May 31, the company's deployed hash rate was 10.5 EH/s. "These new miners will contribute an additional 7.6 EH/s to Riot’s self-mining capacity when fully deployed and will further enhance our already strong fleet efficiency in advance of the upcoming Bitcoin halving,” said Riot CEO Jason Les. RIOT advanced 3.8% in Monday morning trading, even with bitcoin ( BTC-USD ) down 0.1% to $30.5K. Also under the terms of the deal, the company has secured the option to buy up to 66,560 more M56S++ miners from MicroBT. If exercised, that would add 15.3 EH/s to Riot's ( RIOT ) self-mining capacity, to a potential total of 35.4 EH.s. It can execute the option, in whole or in part, by the end of 2024 at the same price. More on Riot Platforms Riot Platforms: Be Patient And Take Bitcoin's Cues Riot Platforms: The 3 NOs And The Defiance Of Limited Supply Riot Platforms' Surge: A Balanced Valuation Or Just The Beginning?