Riot Blockchain to Develop 1GW of Mining Capacity
Riot Blockchain (RIOT). is one of the largest publicly traded bitcoin (BTC) mining companies in the world. The company announced today it will develop 1 gigawatt (GW) of power capacity in Navarro County, Texas dedicated to bitcoin mining. The move will make Riot one of the largest miners in North America.
Riot has been a major player in the BTC mining space since it was founded in 2017. The company has mined over 250,000 BTC since its inception.
The expansion by Riot is scheduled to take place in phases. The first phase will involve an initial 400 megawatt (MW) of capacity with immersion-cooled computers set up on 265 acres of land, with mining and hosting operations expected to commence in July 2023, the company announced in a statement.
The remaining 600 MW of mining capacity will come online in three phases over the following 18 months. When all is said and done, Riot estimates the total cost of the first phase of the expansion will be about $333 million, which is scheduled to be invested over the remainder of 2022, 2023, and the first quarter of 2024.
“Upon completion of the expansion, Riot’s developed capacity will total 1.7 GW, establishing the Company among the largest bitcoin mining operations globally,” said Riot CEO Jason Les in the statement.
In a recent presentation from Riot, the company announced that it has about $312.3 million in cash. This follows up on the April 1 filing, Riot filed for the sale of up to $500 million in shares from time to time, otherwise known as an “at-the-market” (ATM) offering, proceeds of which may be used for investments in existing and future projects.
Riot has been on an impressive run this year, with the stock up over 1,600% since mid-January.On April 16th, Riot announced that it had increased its hashrate by another 42%. The proposed expansion site is within the two hours of Riot’s Whinstone facility, which has a total power capacity of 750MW with 400MW currently developed. This will save the company significant energy cost savings due to its proximity to a substation.
Riot Blockchain (RIOT) is one of the leading cryptocurrency mining companies in the world and is continuing to expand its operations. Riot will partner with Priority Power, for site development management, utility interconnection, power purchase agreements, and power load flexibility.
“Our increased hashrate and ability to lower our energy costs through our continued expansion in North America is a testament to Riot’s dedication to being a leading bitcoin mining company,” said Jeffrey Fulton, COO of Riot Blockchain.
“As we continue to execute on our business plan, we believe that our scale, low-cost electricity, and high performance will allow us to maintain a leading position in the bitcoin mining industry,” Riot CEO Jason Les said in a statement.
Riot is one of the largest public bitcoin miners in North America with approximately 2, 400 cryptocurrency mining rigs deployed. The company’s main operations are located in Central Washington state, where it has access to some of the lowest-cost hydroelectric power in the country.
In January, Riot completed a $200 million equity raise to fund the expansion of its bitcoin mining operations. At the time, Riot said it planned to use the proceeds to add up to 4,000 new S19 Pro Antminers from Bitmain and 1,000 Innosilicon T3+ miners.
In addition to the company’s self-mining operations, Riot hosts approximately 200MW of institutional bitcoin mining clients at its facilities. Last month, Riot announced that it had entered into a definitive agreement to acquire Whinstone US, Inc., a bitcoin mining facility operator in Rockdale, Texas. The deal is expected to close later this year.
Riot Blockchain isn’t the only company trying to take advantage of cheap electricity and low labor costs in Texas. Last year, Hashflare opened a bitcoin mining facility in Rockdale that can accommodate up to 1,000 S9 Antminers. The German firm Envion AG announced plans last January for an 85 MW data center powered by renewable energy from Texas wind farms. More recently, crypto mining giant Bitmain announced on Tuesday it will build its second U.S.-based mining facility near Rockdale.