Riot Platforms mined 412 Bitcoin in September

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As a seasoned analyst with a knack for deciphering the intricacies of the crypto market, I find myself impressed by Riot Platforms’ meteoric rise in Bitcoin production and strategic maneuvering this past year. The company’s operational efficiency and hash rate improvements are noteworthy, especially considering their expansion plans and grid-friendly initiatives.

Riot Platforms mined 412 Bitcoin in September, marking a 28% increase over the previous month.

The surge in output is primarily due to expanded functioning capabilities at Riot’s mining locations, situated in both Texas and Kentucky, as mentioned in an official statement. Riot’s chief executive officer, Jason Les, credited this growth to enhancements in operational effectiveness and boosted hash rates across their entire operation network.

The company now holds 10,427 Bitcoin (BTC).

Alongside the Electric Reliability Council of Texas’s Four Coincident Peak program, the company chose to scale back its activities during peak electricity usage times. This action eases the burden on the electrical grid and enables the company to cut down on energy expenses, an essential aspect in their day-to-day functions.

According to the announcement, Riot has expanded its Corsicana, Texas facility by incorporating an additional 100 megawatts of power capacity during the third development phase.

Bitcoin mining involves verifying transactions within the Bitcoin system through solving intricate mathematical puzzles. Miners such as Riot receive newly minted Bitcoins for their work. As Riot enhances its computational power, as indicated by a higher hash rate, it increases its output of Bitcoins.

Riot vs. Bitfarms

Last summer saw Riot Games actively pursuing a major acquisition, offering $950 million to take over its Canadian competitor, Bitfarms. Having already accumulated a substantial share in Bitfarms, Riot aimed to fully control the company; however, Bitfarms declined the proposal, considering it an underestimation of their worth.

To prevent Riot from taking control, Bitfarms implemented a defensive measure called a “poison pill” policy, which restricts them from buying more shares without the consent of Bitfarms’ board of directors.

Over time, Riot expanded its ownership, ultimately claiming the title of Bitfarms’ primary stockholder. By the halfway point in the year, Riot amplified the conflict by proposing their own board representatives. This move escalated the situation, causing an increase in tension and delaying Bitfarms’ scheduled special shareholders meeting.

The dispute appeared likely to persist until September 2024 when the companies came to an agreement on a settlement. In this settlement, Bitfarms agreed to allow a representative from Riot to join their board of directors, and Riot was granted additional opportunities to purchase Bitfarms shares, under the condition that they continued to hold at least 15%.

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2024-10-03 19:10