Colorado-based Riot Blockchain, one of the few Nasdaq-listed cryptocurrency mining companies in the United States, announced today it continued improvements and optimization of its bitcoin (“BTC”) production, via the relocation of its 4,000 Bitmain S17 Pro miners from Oklahoma City to Coinmint facility in Massena, New York.
Coinmint operates a digital currency data center in a former Alcoa Aluminum smelter in Massena, New York. Its 435MW transformer capacity at its Massena complex, is three times larger than any other known operating digital currency data center in North America
Riot also announced corporate updates and its BTC production update for the month of May 2020.
As previously disclosed on April 14, 2020, Riot entered into a colocation agreement with Coinmint.
According to the firm’s statement, the transition to Coinmint is an important part of Riot’s focus to improve its production cost efficiencies and mining output. The Coinmint energy pricing and hosting arrangement is expected to significantly decrease the direct cost of BTC production as compared to Riot’s Oklahoma City operation, while also appreciably increasing mining uptime. Additionally, Riot now has a clear path forward to continue expanding its total hashing capacity.
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During May and early June 2020, Riot successfully relocated 4,000 Bitmain S17 Pros to Massena, New York, the company said.
To date, 75% of the miners have been deployed, and all miners are expected to be fully deployed by June 15, 2020. The Oklahoma facility lease expires on June 30, 2020 at which time the company plans to have exited the Oklahoma facility.
“As the largest capacity cryptocurrency mining facility in North America, Coinmint is designed to meet the needs of mining partners of Riot’s caliber. We have worked hard to provide the best mining services at the lowest cost to institutional BTC miners. This partnership allows our clients to further expand upon our facilities and leverage Coinmint’s low-cost base to enhance overall margins for all parties,” Ashton Soniat, CEO of Coinmint, stated.
May 2020 production update
On May 11, 2020, the BTC halving occurred, an event that halves the rate at which new BTC are awarded. The halving decreased each block reward from 12.5 BTC to 6.25 BTC. The halving affects both the production and future supply of BTC. Historically, the value of BTC post-halving, over time has increased. However, the potential long-term effects of the halving are unknown.
During May 2020, Riot produced 71 newly mined BTC with its approximately 4,000 Bitmain S17 Pros. Compared to the previous month, the company’s BTC production was affected by the halving event on May 11, 2020 as well as downtime required to transport Riot’s mining fleet to Coinmint’s more efficient mining facility in Massena, New York.