Riot Blockchain on Monday announced the purchase of 15,000 S19 Pro and S19j Pro Antminers from cryptocurrency mining hardware giant Bitmain Technologies for about $35 million. Riot shares closed 9.9% higher at the close on Monday.
Riot Blockchain (RIOT) expects to receive the 15,000 Antminers starting in May 2021 through October 2021. The bitcoin mining company estimates a growth of 65% in bitcoin mining hash rate capacity following the deployment of the Antminers. The delivery schedule for the new miners, including this purchase, will continue till Q421.
Specifically, the full deployment of Riot’s 37,640 next-generation fleet of miners has the potential to increase its bitcoin mining hash rate from 2.3 EH/s to 3.8 EH/s with an energy consumption rate of 120 MW, the company said.
“Continued growth in deployed miners is paramount to a miner’s success,” said Jeff McGonegal, CEO of Riot.
“Expanding the Company’s bitcoin mining hash rate and operating on a cost-effective basis is very important, particularly during periods when the bitcoin spot price has appreciably increased. We are pleased to have secured this latest purchase, especially given that the available supply of mining hardware continues to become increasingly scarce.” added McGonegal.
Riot shares have gained a whopping 886% year-to-date. Nonetheless, H.C. Wainwright analyst Kevin Dede recently reiterated a Buy rating on the stock and more than doubled the price target from $3.50 to $7.50. The price target of $7.50 implies 32% downside risk over the coming 12 months.
The increase of the bitcoin price is attracting attention to cryptocurrency trading “from both casual onlookers to the sophisticated institutional investing audience,” noted Dede. (See RIOT stock analysis on TipRanks)
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