Bitcoin mining company Riot Platforms recorded a production of 215 BTC in May, marking a 43% decrease from the previous month. This decline in mining revenue is a direct result of the Bitcoin halving that took place on April 20, reducing mining rewards to 3.125 BTC.
In anticipation of this decrease, Riot had planned an infrastructure upgrade to sustain Bitcoin production post-halving. In May, Riot unveiled a new Bitcoin mining facility in Corsicana, Texas, adding 3.1 exahashes per second (EH/s). This brought Riot’s total self-mining capacity to 14.7 EH/s, a 17% increase from the previous month.
The current mining facility operates at 100 megawatts (MW) and is projected to scale up to 1 gigawatt (1,000 MWs) once fully developed. Riot has set ambitious goals for hash rate capacity, aiming for 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, placing an initial order of 33,280 miners for the new facility.
Riot’s strategies are designed to ensure profitability, particularly during bear markets. In addition to upgrading to efficient mining equipment to reduce operational costs, Riot has implemented a unique power strategy. CEO Jason Les stated, “Riot’s unique power strategy, which we typically employ most actively in the summer months, has already started to demonstrate significant results for this year, generating approximately $7.3 million in power and demand response credits in May.”
On May 28, Riot Platforms made headlines by announcing an offer to acquire its competitor, Bitfarms, at a premium over its share price. Riot was already Bitfarms’ largest shareholder, holding a 9.25% stake. The proposed buyout includes 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 comes at a time when Bitfarms is undergoing management changes as it seeks a new CEO. In the midst of these developments, crypto enthusiasts are already making waves in the 2024 election, with more disruptions expected to come.