05 Jun

Bitcoin (BTC) has seen a decrease in its ticker value, now at $70,754. Riot Platforms, a prominent miner, produced 215 BTC in May, marking a 43% decrease compared to the previous month.

This reduction in mining revenue directly correlates with the Bitcoin halving on April 20, which slashed mining rewards to 3.125 BTC. In anticipation of this decline, Riot strategically planned an infrastructure upgrade to maintain Bitcoin production post-halving.

In May, Riot inaugurated a new Bitcoin mining facility in Corsicana, Texas, adding 3.1 exahashes per second (EH/s) to its self-mining capacity, totaling 14.7 EH/s—an increase of 17% from the prior month.

With ambitions for further expansion, Riot aims to achieve a total hash rate capacity of 31 EH/s by the end of 2024 and 41 EH/s by 2025. To realize this goal, the company secured a long-term master purchase agreement with MicroBT, initiating an initial order of 33,280 miners for the new facility.

Riot's strategies are designed to ensure profitability, particularly in bear markets. Alongside upgrading to highly efficient mining equipment to reduce operational costs, Riot has implemented a unique power strategy, yielding approximately $7.3 million in power and demand response credits in May.

Furthermore, on May 28, Riot Platforms announced its intent to acquire its competitor, Bitfarms, offering a significant premium over its share price. As Bitfarms undergoes management transition in search of a new CEO, Riot, already its largest shareholder with a 9.25% stake, proposed a buyout comprising cash and common stock, totaling $950 million in equity value—a 24% premium over Bitfarms' one-month volume-weighted average share price as of May 24.

June 2024, Cryptoniteuae

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