Bitcoin (BTC) mining company Riot Platforms produced 215 bitcoins in May, a 43% drop from last month.
The decline in mining revenue is a direct impact of the April 20 Bitcoin halving on the mining industry, which resulted in a halving of mining rewards to 3,125 BTC.
Anticipating this decline, Riot previously planned to upgrade its infrastructure to maintain Bitcoin production after 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, an increase of 17% compared to the previous month.
The mining facility currently operates at 100 MW and will eventually reach 1 GW (1,000 MW) once fully developed.
Develop infrastructure for hash rate growth
Riot aims to achieve a total hash rate of 31 EH/s by the end of 2024 and 41 EH/s by 2025. To achieve this, the company has entered into a long-term master offtake agreement with MicroBT, which included an initial order of 33,280 miners for the new facility.
The strategies Riot uses are designed to ensure profitability, especially during bear markets.
Energy and Demand Response Credits
In addition to switching to highly efficient mining equipment to reduce operating costs, Riot has also employed a new strategy, as Riot CEO Jason Lees explains:
“Riot’s unique energy strategy, which we typically use more actively during the summer months, has begun to deliver significant results for the year, generating nearly $7.3 million in energy and response credits on demand in May.”
about: Bitcoin Halving Drove Bitfarms’ BTC Mining Profits
On May 28, Riot Platforms announced an offer to purchase its competitor Bitfarms, at a price significantly higher than its share price.
At the time of the offering, Riot was already the largest shareholder in Bitfarms, holding a 9.25% stake. The acquisition proposal includes a combination of cash and common stock, with a maximum equity value of $950 million to shareholders, representing a 24% premium to Bitfarms’ average stock price over one month as of May 24.
The offer comes at a time when Bitfarms’ leadership is going through a transition as it searches for a new CEO.
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