Riot miner increases hashrate by 50% in a month and came in second place in this indicator

What’s new? One of the leading US miners Riot Blockchain, with a capitalization of $2,76 billion, increased its hashrate by 50% in June and as a result increased bitcoin mining by 20% for the month. The company mined 255 coins and increased its hashrate from 14,7 to 22 EH/s, moving into second place behind industry leader Marathon Digital (31,5 EH/s) and ahead of CleanSpark and Core Scientific, whose results are also above 20 EH/s.

Press release

What else is known? The sharp increase in the figure was the result of the completion of equipment installation at the Corsicana farm and the connection of additional capacity at the Rockdale farm. The activation of new miners mostly occurred in the last few days of June.

Riot CEO Jason Les called June a historic month, as the company managed to exceed its mid-year hashrate target of 21,4 EH/s.

Also in the previous month, the company did not sell a single mined coin, bringing its stock to 9334 BTC worth about $562 million.

Now Riot intends to increase its hashrate to 31,5 EH/s by the end of this year, and by 2027 or a little later, the company plans to reach a figure of 100 EH/s. It is expected that its achievement will be facilitated by the full exercise of the option to buy MicroBT devices.

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Despite the positive results of the month, the mining volume decreased by 45% year-on-year. The reason for this was the fourth halving of the bitcoin network, which took place on April 20 of this year. The event, which occurs every four years, halves the reward to miners for mining blocks, slowing issuance, and reaching the maximum supply limit, which is programmatically capped at 21 million bitcoins.

This time, the reward was cut to 3,125 BTC, forcing inefficient companies to exit the market and industry leaders to ramp up capacity or diversify revenues.

Riot ranks fourth on the global list of publicly traded miners by capitalization. It is behind US-based Marathon and CleanSpark, as well as Phoenix Group of the UAE.

Shares under the ticker RIOT are trading at $9,57 on the Nasdaq, having lost 1,54% overnight. The monthly drop amounted to 4,6%, and since the beginning of the year, the securities have lost 44% of their value.

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CleanSpark, with a capitalization of $3,71 billion, increased its BTC mining by 6,7% (to 445 coins) in June and surpassed its mid-year hashrate target, increasing it to 20,4 EH/s. CleanSpark’s June purchase of competitor GRIID for $155 million was the second-largest investment round of the month.

Riot is also actively seeking to buy out Canadian competitor Bitfarms, increasing its stake to 14% in June. Bitfarms, however, is resisting a takeover and intends to issue additional shares to dilute the rival’s stake if it grows it to 15%.