Riot Platforms achieved a significant milestone in September by mining 412 Bitcoin, reflecting a remarkable 28% increase compared to the previous month.
This surge in production can be attributed to enhanced operational capacity at their mining facilities located in Texas and Kentucky. According to reports, Riot’s CEO noted that the growth resulted from improvements in operational efficiency and advancements in hash rate across the company.
Currently, Riot holds a total of 10,427 Bitcoin (BTC) as part of its portfolio.
The company also participated in the Electric Reliability Council of Texas Four Coincident Peak program, a strategic move that involved voluntarily reducing operations during high electricity demand periods. This initiative aims to alleviate stress on the electricity grid while simultaneously lowering power costs, a vital aspect of Riot’s operational strategy.
In addition, Riot successfully completed the third development phase at its Corsicana, Texas facility, increasing power capacity by 100 megawatts.
Bitcoin mining involves validating transactions on the Bitcoin network by solving complex mathematical problems, and miners like Riot are rewarded with newly minted Bitcoin. Riot’s enhanced hash rate, representing the computational power dedicated to mining, has significantly contributed to its production increase.
Riot’s Ongoing Strategy in the Market
Riot Platforms has been actively engaged in strategic maneuvers, including a proposed $950 million acquisition bid for its Canadian competitor, Bitfarms. Already a significant stakeholder in Bitfarms, Riot aimed for total ownership; however, the offer was rejected by Bitfarms, which considered it undervalued.
In response to the takeover bid, Bitfarms implemented a “poison pill” strategy to restrict Riot’s ability to increase its shareholding without board consent.
Despite these challenges, Riot steadily increased its stake, ultimately becoming Bitfarms’ largest shareholder. By mid-year, the situation intensified as Riot nominated its own candidates for Bitfarms’ board, leading to a standoff and the postponement of Bitfarms’ special shareholder meeting.
The ongoing conflict reached a resolution in September 2024, with Bitfarms agreeing to appoint a board member supported by Riot, while Riot secured additional rights to acquire Bitfarms shares, contingent upon maintaining a 15% holding.
