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Riot Blockchain Inc. (Nasdaq: RIOT) today announced it has entered into a definitive agreement to acquire cryptocurrency mining equipment consisting of 700 AntMiner S9s and 500 AntMiner L3s, all manufactured by industry leader Bitmain. Riot has secured a location for the operation of the mining equipment at a competitive electric cost, with infrastructure in place for expansion. The transaction is anticipated to close on or before November 15, 2017.
“The acquisition positions us to launch our cryptocurrency mining operations, at a time that Bitcoin and other digital currencies are gaining increased attention and adoption,” said John O’Rourke, President of Riot Blockchain. “We plan to leverage the mining technology to help realize our vision of becoming a leader in blockchain technologies. Mining bitcoin helps secure the bitcoin blockchain, while providing us direct exposure to accumulating bitcoin in the process.”
The mining equipment will be strategically located to utilize hydroelectric power to help minimize utility costs while maximizing potential efficiency and output. Riot Blockchain intends to utilize the mining equipment and lease existing datacenter infrastructure to provide all services necessary for its operations. The total hashing power of the equipment is expected to be 9.8 Petahash of SHA 256 Bitcoin mining computing power and 250,000 MH of X11 for Litecoin mining.
The blockchain is a decentralized and encrypted ledger that offers a secure, efficient, verifiable and permanent way of storing records and other information without the need for intermediaries. These protocols are the backbone of numerous digital cryptocurrencies, including Bitcoin, Ethereum, and Litecoin. Blockchain protocols have a wide range of use, including processing transactions, managing medical records, and recording votes and proof of ownership across a far-reaching spectrum of applications.