Riot Continues Its Second Phase of Transformation with New Purchase of 2,500 S19 Pro Antminers from Bitmain for December 2020 delivery, Announces Receipt and Deployment of Previously Ordered S19 Pro miners

CASTLE ROCK, Colo., Oct. 6, 2020 /PRNewswire/ — Riot Blockchain, Inc. (NASDAQ: RIOT) (“Riot”, “Riot Blockchain” or the “Company”), continues its operational expansion with the purchase of an additional 2,500 next generation S19 Pro Antminer (110 TH/s) cryptocurrency miners for USD $6.1 million from BitmainTech PTE. LTD. (“Bitmain”), scheduled for receipt and deployment delivery in December 2020. 

As part of Riot’s focus on the transformational expansion of its mining operations, it has opted to take advantage of new S19 Pro production capacity from its partner Bitmain by purchasing these 2,500 additional S19 Pro miners, with delivery scheduled to occur before the end of the year. With this purchase, the Company expects to reach 842 PH/s in operational hash rate with 9,540 miners deployed by late December 2020. This represents an increase of approximately 50% over Riot’s previous estimate of its deployed hash rate as of the end of 2020.

Combined with the previously disclosed purchases of Bitmain S19 Pro Antminers, the Company now expects to achieve a total hash rate capacity of 2.3 EH/s by June 2021, with 22,640 total miners deployed. As far as the Company is aware, no other publicly traded bitcoin mining company has disclosed a hashing capacity exceeding 2 EH/s.

Hash Rate Growth

In line with the Company’s previously announced purchase of 13,100 S19 Pro Antminers from Bitmain, Riot expects to receive and deploy new miners every month starting this month and continuing through June 2021. When completed and combined with the Company’s existing fleet, the Company expects to have 22,640 miners deployed, the vast majority being the next-generation S19 Pro

In March, the price of Bitcoin plunged by more than 50% to below $3,600. Since then, the dominant cryptocurrency has rallied by 197% to $10,700. At its yearly peak in August, BTC rose to as high as $12,500 across major exchanges.

Since March, a “buy zone” signal of the Bitcoin hash ribbon indicator has been a persistent BTC catalyst. The historically accurate macro on-chain indicator is hinting an uptrend for BTC again, after first lighting up in March.

In an interview, on-chain analyst Willy Woo explained that the hash ribbon has been in the “buy zone” since March. It recently broke out of the zone, suggesting that a broader uptrend could occur.

What The Hash Ribbon Indicator Is And Why It’s Significant For Bitcoin Price

Bitcoin is widely perceived as a store of value and a currency. Jack Dorsey, the CEO of Twitter and Square
SQ
, said he sees BTC becoming the world’s sole currency by 2030.

Under that is a blockchain network that is maintained by computing power contributed by miners. The amount of computing power supporting the Bitcoin blockchain is a highly important metric to measure the blockchain’s fundamental strength.

The amount of computing power on Bitcoin is called hashrate. If the hashrate increases, it suggests that more miners are contributing computing power to the blockchain. 

The basic theory of the hash ribbon indicator is that a Bitcoin bull cycle begins when miners capitulate. The term capitulation refers to when miners sell a significant amount of BTC, or smaller miners get shaken out. Capitulation could occur when the price of Bitcoin is too low for mining to be profitable.

When capitulation occurs, there