Despite the new facility, Bitcoin’s decline has impacted 43 percent of mining Ryot’s revenue.
Bitcoin (BTC) miner Riot Platforms produced 215 BTC in May, a 43% decrease from the previous month.
The decrease in mining revenue is a direct effect of the April 20 Bitcoin halving on the mining industry, which halved mining rewards to 3.125 BTC.
Anticipating this decline, Riot has developed an infrastructure upgrade to maintain Bitcoin production in the halving.
In May, Riot launched a new Bitcoin mining facility in Corsicana, Texas, which added 3.1 exahashes per second (EH/s), bringing Riot's total self-mining capacity to 14.7 EH/s — a 17 percent increase from last month.
The mining facility currently operates at 100 megawatts (MW) and will eventually grow to 1 gigawatt (1,000 MW) once fully developed.
Building infrastructure for hash rate growth
Riot 31 EH/s by the end of 2024 and 41 EH/s by 2025. To do this, the company has entered into a long-term master purchase agreement with MicroBT, which includes an initial order. 33,280 mines for the new facility.
The strategies employed by Riot are to ensure profitability, especially during bear markets.
Energy and demand response compliments
In addition to upgrading to more efficient mining equipment, Riot has adopted a new strategy to reduce operating costs, Riot CEO Jason Les explained.
“Riot's special energy strategy, which we typically use actively in the summer months, is starting to show significant results this year, generating nearly $7.3 million in energy resource and demand response credits in May.”
RELATED: Bitcoin Halves Bitfarms' BTC Mining Revenue Drops
On May 28, Riot Platforms announced an offer to buy competitor BitFarms at a premium to its stock price.
At the time of the offer, Riot was Bitfarms' largest shareholder with a 9.25% stake. The purchase proposal includes a combination of cash and common stock that would value shareholders at an estimated $950 million, representing a 24% premium over BitFarms' one-month weighted average May 24 price.
The offer comes at a time when Bitfarms management is in transition as it looks for a new CEO.
Magazine: Crypto voters are rocking the 2024 election — and it's set to continue.
