Riot Platforms, Inc. (NASDAQ: RIOT), an firm focused on Bitcoin (BTC) mining and data center hosting, announced that it has executed a purchase option and updated its long-term purchase agreement with MicroBT Electronics Technology Co., LTD, “through its manufacturing subsidiaries, a prominent manufacturer of Bitcoin miners.”
Under the purchase order, Riot will “receive 66,560 latest generation miners from MicroBT, representing a total of 18 EH/s, in addition to the previously announced purchase of 33,280 miners.”
The expected schedule for these two purchase orders is outlined below:
- Q1 2024: Deployment of the previously announced purchase order of 33,280 MicroBT miners begins
- H2 2024: Delivery and deployment begins for the new purchase order of 66,560 additional MicroBT miners
- H2 2025: Deployment of miners under all current purchase order to be completed, Riot’s self-mining hash rate capacity to exceed 38 EH/s
The new order will primarily “consist of MicroBT’s recently announced M66S, its most efficient miner, showcasing an efficiency rating of 18.5 Joules per terahash (TH).”
All miners in the order will be “manufactured in the United States and purpose-built for immersion cooling. The total consideration under the Agreement is $290.5 million (exclusive of applicable taxes, fees and adjustments), equating to an average price for all miners of approximately $16/TH.”
Riot and MicroBT have also “updated the Agreement to provide Riot with options to purchase up to a total of 265,000 additional miners from MicroBT, on the same terms as the new order. Assuming full exercise of Riot’s purchase options, the additional miners would add 75 EH/s to Riot’s self-mining capacity, to a potential total of greater than 100 EH/s.”
Jason Les, CEO of Riot, said:
“I’m excited to announce the largest order of hash rate in Riot’s history. This purchase order and updated Agreement ensures that we will continue to own and operate one of the largest and most efficient Bitcoin mining fleets in the world. The price of these future purchase options will not exceed our current order as announced today, giving Riot the ability to more effectively plan future capital requirements and providing protection from potentially higher market prices for miners in the future.”
As noted in the update:
“Alongside Riot’s commitment for hash rate growth, we are actively building out the infrastructure at our Corsicana Facility, consistent with our long-standing, proven, vertically-integrated strategy. Riot is thrilled to further strengthen our relationship with MicroBT and to lay out our roadmap to reach and exceed 100 EH/s in the coming years.”
Jordan Chen, COO of MicroBT, said:
“MicroBT is proud to announce several significant updates to the long-term Agreement between us and Riot. We are grateful to Riot for the confidence and trust placed in MicroBT, and for the positive working relationship that has been built between our two companies. The entire team at MicroBT is looking forward to continuing to support Riot’s effort to become the world’s leading Bitcoin-driven infrastructure platform.”