Riot Blockchain, a Nasdaq-listed mining company, reported its Bitcoin production last month on Thursday. The number of companies jumped slightly more than 400% year-on-year due to the increase in mining. The recent breakdown of mining in China is also helping companies like Riot continue to grow. The company plans to continue to increase my resources after acquiring 43,500 miners from Bitmain.
Riot Blockchain increases production
Riot Blockchain, a U.S. Bitcoin mining company, delivered its production and operational updates by June Thursday. The company reported growth on the mining bitcoin of more than 400% year-on-year. It produced 243 bitcoins in June, a big increase over the 48 bitcoins mined in the same month last year. The company has produced 1,167 bitcoin this year. These figures represent an increase of 130% compared to last year.
There is one key fact that enables Riot Blockchain to achieve these results: Chinese mining. Caused by the regulatory breakdown in China, the fall in hash power that secured the network created a profit opportunity for some companies. The recent difficulty adjustment, one of the biggest drops in Bitcoin history, seems to create unique opportunities to get into bitcoin mining.
This situation is expected to continue for some time until Chinese mines manage to relocate. A report from the Hashrate Index predicts that between 30% and 40% of this hashrate will travel to the United States. However, these relocations can be subject to delays of up to a year given the logistics surrounding Bitcoin mining.
Expansion plans in motion
Riot Blockchain is already on track to expand mining. Earlier this year, the company announced the acquisition of more than 42,000 S19j Antminers from Bitmain for $ 138.5 million. This deal secures more mining muscle for Riot from next November. In addition, in May, the company acquired Whinstone, one of the largest bitcoin mining data centers in Texas. This acquisition provides an opportunity to secure a workplace and energy for the acquired miners.
At the time of writing, the Riot Blockchain stock is at $ 32.83. Bitcoin is currently trading at $ 33.8K.
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