Bitcoin Mining Firm Riot Blockchain Makes New Million Dollar Purchase
Recently, the firm dedicated to Bitcoin mining, Riot Blockchain, announced a new million-dollar purchase of ASIC equipment. This last transaction would further increase the company’s Hashrate and make it one of the most active in expanding its mining capacity.
The news highlights one of the most discussed points by experts about the expansion of Bitcoin mining outside of China. Companies across the Western Hemisphere are leading the way in purchasing state-of-the-art equipment, primarily from the manufacturer Bitmain.
Consequently, the new $ 6.1 million Riot Blockchain transaction corresponds to some 2,500 S19 Pro antminers. The purchase increases to about 20 thousand the number of machines in possession of this firm that is listed on Nasdaq.
Bitcoin Mining Firm, Riot Blockchain Will Increase Capacity
The mining power of this firm, whose work focuses on Bitcoin mining, would increase notably by 2021. The representatives of the company assure that the latest transaction includes the delivery of the equipment for December of this year.
Another important aspect to mention is that the company has bought, to date, some 20 thousand Bitcoin mining machines. The same would begin to arrive from this month and, by June 2021, the total could reach 22,640 units according to the firm.
For the month of June of the next year 2021, andThe hash power of Riot Blockchain, will be increased from the current capacity of 500 PH / s to 2.3 EH / s. With this magnitude, the company would receive more than 100BTC each month.
To get an idea of the magnitude that this Bitcoin mining firm will have in 2021, suffice it to say that this hash power is equivalent to about 164,000 S9 antminers of 14 TH / s.
Riot Blockchain Purchase History in 2020
The significant disbursement of funds for the acquisition of Bitcoin mining machines, by the aforementioned firm, has been constant throughout the year. Since April, he has run multi-million dollar deals with his Bitmain partners.
- April 2020: purchased 1,000 antminers S19 Pro (110 TH / s) are already producing.
- May 2020: the company acquired 1,040 S19 antminers (95TH / s), they are already producing.
- June 2020: 1,000 antminers S19 Pro (110 TH / s), part of them are already active, another part waiting.
- August 2020: 13,100 antminers S19 Pro (110 TH / s), they are awaiting shipment.
- October 2020: 2,500 antminers S19 Pro (110 TH / s), recent transaction purchase.
It should be noted that, according to the company’s own information, the energy consumption of will be approximately 73 megawatts. Taking into account the mining power of the equipment, Riot Blockchain’s efficiency, will stand at 32.33 J / TH.
More and more difficult to mine
The increasing difficulty of the Blockchain network to exercise Bitcoin mining, increasingly compromises medium and small miners. The “arms race“Among large companies to maintain income, it forces them to acquire more powerful equipment.
The new additions increase the total hash of Bitcoin and the difficulty of the network. So it is necessary to incorporate more and better ASICs. This creates a competitive circle where those companies that cannot invest are left behind in the competition.
In accordance with this, it should be remembered that every 2,016 mined blocks, (approximately every two weeks), a difficulty adjustment is made. This adjustment occurs automatically in the network and serves to maintain the balance of mining activity.
As the difficulty continues to rise, high-caliber companies are fighting an all-out fight. All this has led to the conclusion that small miners are doomed to leave the game. In other words, in the long run, mining could be owned by a handful of big monopolies.
In this sense, Riot Blockchain has its mission quite clear, which is why, in 2020, it dedicated itself to acquiring equipment in a massive way. Of this fact, the company itself boasts when stating that “no other company has publicly made an investment of such magnitude”.
However, the competition …
Other Bitcoin mining companies participating in this race to increase their hashing power are Marathon and Core Scientific. The latter, last June, announced the purchase of some 17,595 miners of the S19 series from the Bitmain company.
Like the Riot Blockchain, Core Scientific bills itself as the largest Bitcoin mining firm in the United States. In addition, it is dedicated to other technological branches such as Blockchain and Artificial Intelligence.
This firm owns five gigantic Bitcoin mining farms in the territory of the North American country. They are located between North Carolina, Kentucky and Georgia. The combined energy consumption of the five facilities is about 450 Megawatts.
At the time, Russel Cann, CCSO of this company, pointed out that “current focus”From Core Scientific, is to expand into the field of cryptocurrency mining, specifically Bitcoin.
With this in mind, it can be said that Riot Blockchain is not alone when it comes to massive purchases of Bitcoin mining equipment. It is a race, in which There is a decentralization of mining activity from China to the United States and the West in general.
Data to take into consideration
- From now until the end of 2020, the hash power of Riot Blockchain will increase by 40%.
- By June 2021, it will reach an impressive 2.3 EH / s.
- During 2020, the Bitcoin mining firm entered its second expansion phase, which consists of the massive purchase of ASIC equipment.
- Starting in June, if the price and the difficulty of the network remained as it is today, the company would mine the equivalent of $ 4.65 million dollars each month.
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