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Bitmain Launches Cheaper Mining Machines After Bitcoin Halving and Losing Market Share to MicroBT

Bitmain has launched a cheaper version of a Bitcoin mining machine, Antminer T19, compared to its more pricy predecessor Antminer S19.

Bitmain has been losing its market share to its rival, MicroBT, which launched its M30S++ Bitcoin miner in April this year.

The Antminer T19 has a hashrate/ mining power of 84 terahash per second (TH/s), and power efficiency of 37.5 joules per terahash (J/TH). The price of this new mining machine is around $1750, while the S19 costs around $1785.

According to F2Pool, the new mining model can generate a profit of around $3.14 per day, while the S19 could generate around $3.95 per day.

Manufacturing delays have been caused by the coronavirus outbreak, causing a reduction in growth in Bitcoin’s computing power. Bitmain has been dominating the cryptocurrency mining hardware industry since 2017, and has even tried to file an IPO with the Securities and Exchange Commission (SEC) in the United States.

Canaan Creative, another Bitcoin mining titan, as well as Bitmain have failed during the crypto winter in 2018 to conduct the offering. However, Bitmain has discreetly filed an application with the US SEC in late 2019, and anonymous informed sources according to a Tencent report has revealed that Deutsche Bank may have been sponsoring the application.

Bitcoin halving

The latest Bitcoin halving took place in May 2020. Each time Bitcoin halving takes place, the number of Bitcoins entering circulation every 10 minutes, also known as block rewards, will fall to half, to 6.25 from 12.5 in May.

As the amount of supply of the crypto is decreasing, the demand most likely will stay the same, but possibly lead to an increase in Bitcoin’s price. Experts believe that there will be less Bitcoin available in the market if the miners will be selling less of the cryptocurrency.

MicroBT CEO alleged dispute with Bitmain

The Chinese Police have just resumed its investigation of intellectual property infringement involving Yang Zuoxing, CEO of Shenzhen Bit Microelectronics Technology, and Bitmain.

In the course, Yang was being arrested to help in the investigation of the patent of Bitmain he allegedly infringed upon and if found guilty, would be sentenced to prison.

The news about his arrest was revealed by insiders who were around when the police took hold of him on the basis of intellectual disputes in Bitmain.

Yang was once staff in the company; working as the director of processor design, he developed the Antminer S7 and S9 models. However, Yang exited the company when the talk over equity stake was a debacle.

Following from this, Bitmain took MicroBT to court alleging that Yang has infringed upon their patent.

Image via Shutterstock

Riot Acquires Next-Gen Miners from MicroBT, Boosting Mining Capacity

Riot Platforms, Inc. (NASDAQ: RIOT), a prominent player in the Bitcoin mining and data center hosting industry, has made a groundbreaking move by entering into a long-term purchase agreement with MicroBT Electronics Technology Co., LTD. This landmark deal involves the acquisition of 33,280 state-of-the-art Bitcoin miners manufactured in the United States by MicroBT. The agreement also includes an option for Riot to purchase an additional 66,560 miners on the same terms.

Upon full deployment in 2024, the initial purchase of 33,280 miners is expected to increase Riot’s self-mining capacity to an impressive 20.1 exahashes per second (EH/s). The order consists of the M56S+ and M56S++ models, renowned for their high hash rates and energy efficiency. With a weighted average efficiency of 22.5 joules per terahash (J/TH), these miners are designed specifically for immersion cooling systems, perfectly suited for Riot’s Corsicana Facility.

Jason Les, CEO of Riot, expressed his enthusiasm for the partnership with MicroBT and the acquisition of these cutting-edge Bitcoin miners. He emphasized their power and efficiency, specifically designed for immersion cooling systems. Les added that the new miners would contribute an additional 7.6 EH/s to Riot’s self-mining capacity, further enhancing the company’s already strong fleet efficiency ahead of the upcoming Bitcoin halving.

Beyond the impact on Riot’s mining operations, the collaboration with MicroBT marks a significant milestone for the Bitcoin mining industry. By manufacturing the miners domestically, Riot and MicroBT are strengthening the United States’ supply chain and providing more options for domestically produced Bitcoin miners. MicroBT will manufacture these miners in Pittsburgh, PA, creating new employment opportunities and contributing to the local economy.

Riot’s expansion plans, coupled with the confidence displayed by MicroBT and other mining companies, highlight the positive outlook on Bitcoin’s future. This news follows Hut 8’s recent announcement of securing $50 million from Coinbase Credit to support growth initiatives and enhance financial flexibility. The continuous growth and investment in the mining sector demonstrate a strong belief in the long-term potential of Bitcoin.

Riot Platforms Bolsters Hash Rate with a $97.4M Purchase of MicroBT Miners

Riot Platforms, Inc. (NASDAQ: RIOT), a trailblazer in vertically integrated Bitcoin mining, has taken a significant step to amplify its mining operations. The company has announced a substantial investment in a new batch of mining hardware, purchasing 31,500 WhatsMiner M60S miners from the distinguished manufacturer MicroBT for a total of $97.4 million. This strategic acquisition is set to replace less efficient miners and add considerable hash rate capacity at Riot’s flagship Rockdale Facility.

Expanding Hash Rate Capacity

The purchase comes at a cost of approximately $16.50 per terahash (TH), reflecting the focus on enhancing operational efficiency and the overall hash rate. The 31,500 miners boast a combined total of 5.9 exahash per second (EH/s), which significantly contributes to the company’s ambitious goals. Riot’s foresight in hash rate growth is evident as it expects to reach a target of 31 EH/s by the end of 2024, incorporating expansion at both the Rockdale and the forthcoming Corsicana facilities.

Deployment and Operational Impact

Scheduled to be delivered in May and June 2024, the new miners will increase the Rockdale Facility’s self-mining hash rate from its current 12.4 EH/s to an estimated 15.1 EH/s by the end of July 2024. Approximately 14,500 miners will be added to the Rockdale Facility’s capacity, and around 17,000 will replace existing underperforming hardware.

The M60S miners are MicroBT’s latest generation air-cooled machines, each offering an efficiency of 18.5 joules per TH and an output of approximately 186 TH/s. This upgrade is anticipated to result in enhanced operating uptime and energy efficiency, as these units are noted as the most efficient produced by MicroBT to date.

Riot reported a significant operational growth in 2023, with a total revenue of $280.7 million, up from $259.2 million in 2022, according to Blockchain.News. The company saw a 19% increase in Bitcoin production, with 6,626 Bitcoin mined. Riot’s strategic power strategy earned $71.2 million in power credits during supply/demand issues. The company expanded its Rockdale Facility and Corsicana Facility, aiming to become the world’s largest dedicated Bitcoin mining facility. Riot’s financial health was strong, with a strong balance sheet and a 33% decrease in Bitcoin mining costs.

CEO Perspectives

Riot’s CEO, Jason Les, expressed enthusiasm about the acquisition: “This order not only increases our hash rate but also significantly improves our operational efficiency.” Les further added that the investment underscores Riot’s commitment to becoming a leading low-cost Bitcoin miner and enhancing its industry-leading fleet.

Jordan Chen, COO of MicroBT, also commented on the strengthened partnership with Riot and the shared vision for a 100+ EH/s mining fleet in the future.

About MicroBT and WhatsMiner and Riot Platforms, Inc.

MicroBT is a blockchain technology company focusing on integrated circuit chips and high-performance computing solutions. It has recently started manufacturing Bitcoin mining hardware in the United States. WhatsMiner, a leading brand of mining hardware developed by MicroBT, is recognized for its efficiency and cost-effectiveness, enjoying widespread use globally.

Riot Platforms, Inc. aspires to be the world’s leading Bitcoin-driven infrastructure platform, positively impacting sectors, networks, and communities. With its integrated strategy, Riot conducts data center hosting, Bitcoin mining, and electrical switchgear engineering and fabrication across central Texas and Denver, Colorado.