Riot Platforms, CleanSpark expand Bitcoin mining operations ahead of halving

Riot Platforms has acquired 31,500 Bitcoin mining machines, and CleanSpark has completed the acquisition of three new facilities.

The strategic acquisitions are part of a broader effort by crypto miners to enhance efficiency and prepare for the Bitcoin halving, which will reduce per-block rewards from 6.25 BTC to 3.125 BTC, putting financial pressure on the mining operations.

Riot Platforms’ $97.4 million purchase from MicroBT is set to increase the hash rate capacity at its Rockdale, TX facility from 12.4 exahashes per second (EH/s) to 15.1 EH/s by July’s end. The acquisition of M60S air-coolers aims to replace underperforming miners and is part of Riot’s plan to replace 17,000 miners while adding 14,500 more.

Riot’s CEO Jason Les emphasized the importance of securing newer and more efficient mining machines in a press release with the halving event approaching. The company also has an eye on future expansion, targeting a hash rate of 31 EH/s by the end of 2024 as it continues to develop its facility in Corsicana, TX.

CleanSpark’s recent completion of three data center acquisitions in Mississippi, part of a $19.8 million cash deal, marks another expansion to increase its operational hash rate by roughly 2.4 EH/s.

“CleanSpark is also in a sprint to add more hash rate as quickly as possible,” CEO Zach Bradford said in a press release about the swift integration of the new facilities. Bradford added that the acquisition has already boosted the company’s fleetwide hash rate to over 15 EH/s.

The acquisitions reflect the nature of the crypto mining industry, with Louise Abbott, a crypto-focused partner at Keystone Law, noting that the success of Bitcoin miners hinges on several factors, including energy costs and equipment efficiency.

As the halving is poised to disrupt the profitability of certain mining operations, companies like Riot Platforms and CleanSpark are aggressively pursuing advancements to secure their positions in the market.

Galaxy Digital analysts have warned that up to 20% of the network hash rate from eight mining models could go offline after the halving, underscoring the critical nature of these strategic expansions for maintaining competitiveness in a tightening market.