Riot Blockchain Bitcoin Production Jumps More Than 400% Year-on-Year Amidst Mining Exodus
Riot Blockchain, a Nasdaq-listed mining company, reported Thursday on its Bitcoin production last month. The company’s numbers jumped a little more than 400% year-on-year, as a result of the increase in mining power. The recent mining crackdown in China is also helping companies like Riot to keep growing. The company plans to continue increasing its mining resources after acquiring 43,500 miners from Bitmain.
Riot Blockchain Ramps Up Production
Riot Blockchain, an American Bitcoin mining company, delivered its Production and Operations updates for June on Thursday. The company reported growth on the bitcoin mined of more than 400% year-on-year. It produced 243 bitcoin this June, a big increase from the 48 bitcoin mined in the same month last year. The company has produced 1,167 bitcoin this year. These numbers represent an increase of 130% compared to last year.
There is a key fact that allows Riot Blockchain to achieve these results: The Chinese mining exodus. Caused by the regulatory crackdown in China, the decrease of hash power securing the network created a profit opportunity for some companies. The recent difficulty adjustment, one of the biggest drops in Bitcoin history, seems to be creating unique opportunities to get into bitcoin mining.
This situation is expected to continue for some time till Chinese mines manage to relocate. A report from Hashrate Index predicts that between 30% and 40% of this hashrate will travel to the U.S. However, these relocations may face delays of up to one year considering the logistics that surround Bitcoin mining.
Expansion Plans in Motion
Riot Blockchain is already on its way to expanding mining operations. Earlier this year, the company announced the purchase of more than 42,000 S19j Antminers from Bitmain for $138.5 million. This deal secures more mining muscle for Riot starting from next November. Also, the company acquired Whinstone in May, one of the biggest bitcoin mining operation data centers in Texas. This acquisition allows it to secure a working location and energy for the acquired miners.
At the time of writing, Riot Blockchain stock sits at $32.83. Bitcoin currently trades at $33.8K.
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