Recently, Bitcoin’s mining firm, Riot Blockchain, announced a new million dollar purchase of ASIC equipment. This latest transaction would further increase the company’s Hashrate and make it one of the most active in expanding its mining capacity.
The news highlights one of the most discussed points by experts about the expansion of Bitcoin mining outside China. Companies from all over the Western Hemisphere are leading the way in the purchase of state-of-the-art equipment, mainly from the manufacturer Bitmain.
As a result, Riot Blockchain’s new $6.1 million transaction corresponds to some 2,500 S19 Pro antminers. The purchase increases to about 20 thousand the number of machines in possession of this firm, which is listed on Nasdaq.
Bitcoin Revolution reviews mining firm, Riot Blockchain will increase its capacity
The mining power of this firm, whose work focuses on Bitcoin mining, would increase significantly by 2021. The company’s representatives assure that the last transaction contemplates the delivery of the equipment by December of this year.
Another important aspect to mention is that the company has purchased, to date, about 20 thousand Bitcoin mining machines. These machines will begin to arrive as of this month and, by June 2021, the total could reach 22,640 units, according to the firm.
By June of next year 2021, Riot Blockchain’s hash power will increase from the current capacity of 500 PH/s to 2.3 EH/s. With this magnitude, the company would receive more than 100BTC each month.
To have an idea of the magnitude that this Bitcoin mining firm will have in 2021, suffice it to say that this hash power is equivalent to some 164,000 S9 antminers of 14 TH/s.
The hash rate of Bitcoin mining firm Riot Blockchain will grow exponentially in June 2021. Source: prnewswire.comThe hashrate growth of the mining firm Bitcoin Riot Blockchain will be exponential in June 2021. Source: prnewswire.com
Riot Blockchain buys more processors, why?
Riot Blockchain’s purchase history in 2020
The significant disbursement of funds for the acquisition of Bitcoin mining machines by the aforementioned firm has been constant throughout the year. Since April, it has executed multimillionaire operations with its partners of Bitmain.
It should be noted that, according to the company’s own information, the energy consumption will be approximately 73 megawatts. Taking into account the mining power of the equipment, the efficiency of Riot Blockchain will be located at 32.33 J/TH.
Increasingly difficult to mine
The increasing difficulty of the Blockchain network to carry out Bitcoin mining, compromises more and more the medium and small miners. The „arms race“ between the big companies to maintain the revenues, forces them to acquire more powerful equipment.
The new incorporations, make Bitcoin’s total hash and the difficulty of the network grow. This is why more and better ASICs need to be incorporated. This is creating a competitive circle where those companies that cannot invest, stay behind in the competition.
According to this, it should be remembered that every 2,016 blocks mined, (every two weeks approximately), an adjustment is made to the difficulty. This adjustment occurs automatically in the network and serves to maintain the balance of mining activity.
As long as the difficulty keeps increasing, large companies keep fighting without quarter. All this has led to the conclusion that the small miners, are condemned to leave the game. In other words, in the long run, mining could be monopolized by a handful of big monopolies.
In this sense, Riot Blockchain has its mission quite clear, so that in 2020 it is dedicated to acquiring equipment on a massive scale. From this fact, the company itself boasts that „no other company has publicly made an investment of such magnitude.
Bitcoin mining in the United States strengthened after massive purchase of ASICs
However, the competition…
Other Bitcoin mining companies participating in this race to increase their hash power are Marathon and Core Scientific. The latter, last June, announced the purchase of some 17,595 mining companies of the S19 series from Bitmain.
Like Riot Blockchain, Core Scientific calls itself the most important company dedicated to Bitcoin mining in the United States. In addition, it is dedicated to other technological branches such as Blockchain and Artificial Intelligence.
This firm has five giant Bitcoin mining farms in the United States. They are located between North Carolina, Kentucky and Georgia. The combined energy consumption of the five facilities is about 450 Megawatt