Riot purchases BTC miners worth $290M from MicroBT

9:29 pm
December 4, 2023

**Riot’s $290M Acquisition of BTC Miners from MicroBT Drives Stock Prices Up**

Bitcoin mining company Riot Blockchain, Inc. (NASDAQ: RIOT) has made a significant investment in its mining infrastructure, as reflected in the purchase of over 66,000 miners from MicroBT, a leading Bitcoin mining hardware manufacturer. The acquisition, which is Riot’s largest to date, will cost the company $290.5 million. The news of this substantial investment has led to a commendable surge in the company’s stock price, with shares trading above $15 on Monday, December 4.

Riot’s strategic expansion plans involve procuring 18 EH/s of mining power from MicroBT, and the latest purchase adds to the 33,280 miners Riot previously secured in an earlier agreement. The new order, consisting of MicroBT’s M66S model, is expected to significantly boost Riot’s total self-mining hash rate, potentially surpassing 38EH/s once the deployment is completed.

Furthermore, Riot has revised its long-term purchase agreement with MicroBT, allowing the company the option to acquire up to 265,000 additional miners. This move is aimed at providing Riot with greater flexibility in planning future capital requirements and protecting itself from potential surges in market prices for miners.

This major purchase comes at a time when Bitcoin has exceeded the $40,000 mark for the first time since April 2022. Consequently, Riot’s stock price surged by 8% in a single day and by nearly 24% over the past week. The company’s year-to-date performance has seen a 345% increase, reaching $15.07. While this figure is lower than previous highs, the optimistic outlook for Bitcoin could propel Riot’s stock to rally even higher.

The purchase of these miners and Riot’s expansion plans have been well received by investors, signaling a promising future for the company in the rapidly evolving Bitcoin mining landscape.

**FAQs**

1. **What is the significance of Riot Blockchain’s purchase from MicroBT?**
Riot Blockchain’s purchase of over 66,000 miners from MicroBT for $290.5 million represents its largest hash rate acquisition to date. This significant investment reflects the company’s commitment to expanding its mining capacity and marks a pivotal moment for the company’s growth.

2. **How has the purchase impacted Riot’s stock prices?**
Following the announcement of the purchase, Riot’s stock price surged, with shares trading above $15 on the day of the announcement. The stock saw an 8% increase in a single day and nearly 24% over the past week, reflecting a positive investor response to the company’s strategic investment.

3. **What are Riot’s future expansion plans in relation to the recent purchase?**
Riot has also updated its long-term purchase agreement with MicroBT, enabling the company to potentially acquire up to 265,000 additional miners. This move aims to provide Riot with greater flexibility in planning future capital requirements and protecting itself from potential market price fluctuations for miners.

4. **How does Riot’s expansion align with current trends in the Bitcoin market?**
The timing of Riot’s significant expansion coincides with Bitcoin’s surge above the $40,000 mark for the first time since April 2022. This demonstrates Riot’s proactive approach to capitalizing on the positive momentum in the Bitcoin market and positioning itself for further growth and success.

5. **What impact has Bitcoin’s performance had on Riot Blockchain?**
The bullish performance of Bitcoin, with the cryptocurrency reaching highs of $42,000, has contributed to a notable increase in Riot’s stock price. This indicates that Riot’s strategic purchases are aligned with the positive overall market sentiment towards Bitcoin and its potential for future growth.


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