Riot Blockchain, a Nasdaq-listed mining company, reported on its Bitcoin production last month on Thursday. Due to the increase in mining capacity, the company’s number has increased by more than 400% year-on-year. China’s recent mining crackdown has also helped companies such as Riot maintain growth. The company plans to continue to increase its mining resources after acquiring 43,500 miners from Bitmain.
Riot blockchain increases production
American Bitcoin mining company Riot Blockchain released its June production and operations update on Thursday. The company reported that Bitcoin mined increased by more than 400% year-on-year. It produced 243 bitcoins in June this year, which is a significant increase from the 48 bitcoins mined in the same month last year. The company produced 1,167 Bitcoins this year. These figures have increased by 130% compared to last year.
There is a key fact that enables the Riot blockchain to achieve these results: the outflow of China’s mining industry. Due to the Chinese regulatory crackdown, the decline in the computing power of cybersecurity has created profit opportunities for some companies. The recent difficulty adjustment is one of the biggest declines in Bitcoin’s history and seems to create a unique opportunity to enter Bitcoin mining.
This situation is expected to continue for some time until the Chinese mines are successfully relocated. A report by the Hashrate Index predicts that 30% to 40% of this computing power will go to the United States. However, given the logistics of Bitcoin mining, these relocations may face delays of up to a year.
Expansion plan being implemented
Riot Blockchain has begun to expand its mining business. Earlier this year, the company announced the purchase of more than 42,000 S19j ant mining machines from Bitmain for USD 138.5 million. Starting in November next year, this transaction has ensured more mining power for Riot. In addition, the company acquired Whinstone in May, which is one of the largest Bitcoin mining operations data centers in Texas. The acquisition enables it to secure work locations and energy for the acquired miners.
At the time of writing, Riot Blockchain stock price is $32.83. Bitcoin is currently trading at a price of 33,800 U.S. dollars.
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