Riot Blockchain Rebranding To The Riot Platform Amidst Mining Route

Bitcoin Miner Riot Blockchain has changed its name to Riot Platforms to reflect a more diversified business.

In a press release, the company announced that despite the name change, it will continue to trade on Nasdaq using the ticker symbol RIOT.

Riot may reach self-mining hashrate of 12.5 EH/s by Q1 2023

rebranding announcement comes nearly a year and a half after closing a deal for the company To earn A Rockdale, Texas bitcoin hosting facility belonging to Whiston US. Riot also agreed to acquire power equipment maker ESS Metron Seven months later.

“The scope and scale of our business continues to grow, and this rebranding better reflects our position as a strategic allocator of capital to rapidly expand the scope of our bitcoin operations,” said CEO Jason Less. “

Whiston and Riot will operate under the Riot Platforms business unit, while ESS Metron will continue to use its existing name due to customer familiarity with the brand.

Riot’s Q3 2022 Financial and Operational Update revealed Lower bitcoin production in the quarter due to the company’s power cut strategy and lower BTC price. Bitcoin is down 60% in 2022 and is currently down 75% from its November 2021 high of around $69,000.

Riot expects to successfully deploy 115,450 Antminer ASICs by the first quarter of 2023 and achieve a self-mining hashrate capacity of 12.5 Exahashes/second if there is no production boost from its 200MW immersion-cooling infrastructure.

Miners return equipment to repay debt

Many miners are filing for bankruptcy or being turned back to ASIC because they cannot pay back the loans they accrued during the previous bitcoin bull run. ASICs are purpose-built mining computers that miners use to broadcast a block of transactions on the bitcoin network and solve the cryptographic puzzles required to earn bitcoins.

In the early stages of the cryptocurrency mining industry, borrowers often set the terms of the loan agreement. As a result, most mining firms offered ASICs as collateral, with these machines being the primary way lenders could recoup their investments if miners faced bankruptcy.

With bitcoin on a number of fronts including threats of a US recession and a general disquiet about the crypto industry following the collapse of several major crypto entities, some miners facing falling BTC revenues have called ASIC to report their lenders. have returned. In some cases, the cost of returning machines is less than repaying the loan.

based in sydney Iris Energy And Stronghold Digital Mining opted to return the machines to wipe out its debt, while Greenidge Generation Holdings signed a non-binding term sheet to sell its equipment to lender NYDIG. NYDIG will reduce Greenidge’s debt by taking ownership of the machines that Greenidge will now host.

Argo Blockchain recently sold its entire Texas facility to financial services firm Galaxy Digital for $65 million to help it stave off bankruptcy.

Texas miner Core Scientific may recover $2 million monthly from closure of nearly 37,000 ASICs belonging to bankrupt lender Celsius Network, core scientist filed for bankruptcy In December 2022.

Texas based miners first appealed to the court To maintain an earlier hosting agreement between itself and Celsius that forced the dormant lender to cover rising energy costs. The lender, itself going through Chapter 11 bankruptcy proceedings, has not made required payments, prompting CORE to shut down the machines.

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disclaimer

BeInCrypto has reached out to the company or the person involved in the story for an official statement regarding the recent development, but has yet to hear back.

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