In May, Bitcoin miner Riot Platforms generated 215 BTC, a 43% drop from the previous month, due to the effects of the Bitcoin halving on April 20. This event reduced mining rewards to 3.125 BTC, prompting Riot to plan an infrastructure upgrade in anticipation.
The company launched a new Bitcoin mining facility in Corsicana, Texas, in May, adding 3.1 exahashes per second (EH/s) to their capacity. This increased Riot’s total self-mining capacity to 14.7 EH/s, a 17% rise from the previous month. The facility currently operates at 100 megawatts (MW) but is expected to scale up to 1 gigawatt (1,000 MWs) once fully developed.
Riot’s goal is to achieve a total hash rate capacity of 31 EH/s by the end of 2024 and 41 EH/s by 2025. To achieve this, the company has entered a long-term agreement with MicroBT, ordering 33,280 miners for the new facility.
In addition to upgrading to more efficient mining equipment to reduce operational costs, Riot has implemented a unique power strategy, generating approximately $7.3 million in power and demand response credits in May. These strategies are designed to ensure profitability, particularly during bear markets.
On May 28, Riot Platforms made an offer to acquire its competitor, Bitfarms, at a significant premium over its share price. As Bitfarms’ largest shareholder with a 9.25% stake, Riot proposed a combination of cash and common stock totaling $950 million in equity value for shareholders, representing a 24% premium over Bitfarms’ one-month volume-weighted average share price as of May 24. This offer coincides with Bitfarms’ management transition as they search for a new CEO.
The crypto industry is already influencing the 2024 election, and this trend is expected to continue.