Not a good decision at all. I know it sounds like a lot of money but this is not a good decision at all. Why? Because even with that much power, they are not going to get a lot of marketshare, there are people who build their own ASIC miners and use them, so the power they have will always be higher.
And even if they make a "profit" quickly on the early days, this isn't something we can use for decades, it is an investment that will make a profit until it is old hardware and needs a better and new upgraded version. I kept saying that mining is a bad business because it is short term and you barely make the money back and then some, when you could use the same money and do a better business that can grow instead of get old with time.
Topic: Bitcoin Mining Firm Riot Secures 33,000 New Rigs for $162 Million (Read 213 times)
June 29, 2023, 04:10:51 AM
It is noteworthy that this huge investment comes at this time, less than a year before the halving. It is known that the bitcoin rewards will drop in half after the halving, so the big company must not have ventured to put this huge amount into mining if they did not have great confidence that the price of bitcoin would rise strongly and the next bull will start.
It is certain that these large companies do not make any move before the economic feasibility study for several years, so these are good indications that we will witness the beginning of the bull soon and there will be new peaks for Bitcoin.
It is certain that these large companies do not make any move before the economic feasibility study for several years, so these are good indications that we will witness the beginning of the bull soon and there will be new peaks for Bitcoin.
June 29, 2023, 03:51:01 AM
However you want to look at this , this is another signal for anybody doubting if bitcoin is real, its very real !
And just so you know, no business will invest millions of dollars without having a foresight of reaping profits out of its business..btw this is bullish bullish news, I like it 👌!!!
I wonder why they are bumping up their .mining power, any possibility of a new player coming on board in the mining space or its business as usual
And just so you know, no business will invest millions of dollars without having a foresight of reaping profits out of its business..btw this is bullish bullish news, I like it 👌!!!
I wonder why they are bumping up their .mining power, any possibility of a new player coming on board in the mining space or its business as usual
June 29, 2023, 03:19:03 AM
Cryptocurrency is alive and kicking, folks! Riot Platforms is carving a path, ramping up its Bitcoin mining muscle, a leap of faith that resonates with the digital gold's prospects.
Pioneering technologies call for perseverance, results of investments like this arent immediate. A 2024 activation for these machines shouldn't dampen spirits. Instead, its a symbol of the enduring trust Riot Platforms and other savvy investors hold in Bitcoin and the crypto galaxy.
This input may herald the next bull phase. The "wise bucks" are synchronizing with the undeniable truth of Bitcoin's staying power, emphasizing blockchain's potential and import.
Pioneering technologies call for perseverance, results of investments like this arent immediate. A 2024 activation for these machines shouldn't dampen spirits. Instead, its a symbol of the enduring trust Riot Platforms and other savvy investors hold in Bitcoin and the crypto galaxy.
This input may herald the next bull phase. The "wise bucks" are synchronizing with the undeniable truth of Bitcoin's staying power, emphasizing blockchain's potential and import.
Yeah, as said previously, they know the game already, so they are going to invest today, because we are all anticipating a huge rally in the next bull run. So this companies are preparing themselves already and they are willing to invest huge money like in the next because they know that the returns will outweigh the investments, in short, they are in the profit seeking business.
As for the bull run, maybe we did start already, as just in January alone, we've seen a big jump of like 40%++.
But the real action is after the halving and that's where everyone is anticipating a big jump in prices, a new all time high of 6 digits.
June 29, 2023, 01:49:22 AM
Cryptocurrency is alive and kicking, folks! Riot Platforms is carving a path, ramping up its Bitcoin mining muscle, a leap of faith that resonates with the digital gold's prospects.
Pioneering technologies call for perseverance, results of investments like this arent immediate. A 2024 activation for these machines shouldn't dampen spirits. Instead, its a symbol of the enduring trust Riot Platforms and other savvy investors hold in Bitcoin and the crypto galaxy.
This input may herald the next bull phase. The "wise bucks" are synchronizing with the undeniable truth of Bitcoin's staying power, emphasizing blockchain's potential and import.
Pioneering technologies call for perseverance, results of investments like this arent immediate. A 2024 activation for these machines shouldn't dampen spirits. Instead, its a symbol of the enduring trust Riot Platforms and other savvy investors hold in Bitcoin and the crypto galaxy.
This input may herald the next bull phase. The "wise bucks" are synchronizing with the undeniable truth of Bitcoin's staying power, emphasizing blockchain's potential and import.
June 28, 2023, 09:58:02 PM
This is super bullish for BTC. It is a bit of a bummer for Riot though not being able to deploy all of these until 2024!!! Man, kind of makes you wonder where we are at with that global chip shortage, maybe that is one of the culprits behind this slowness of these machines being delivered. I mean just think of how much money they are losing out on with the last bit of the good mining reward in effect and only catching the last little tail end of that. Pity! Oh well, they're loaded anyways. Its drops in the bucket for them!!
June 28, 2023, 06:39:49 AM
Another step towards centralized bitcoin economy! Not much cheerful for the market to be honest. Private companies have loads of cash which they can use for their own benefits. The major risk here is that if they are building such a huge mining farm in a country like US which are not really crypto friendly, then the government can take over such a huge mining facility by force if they want to control the network.
I am not really in favor of big corporates when it comes to bitcoin network.
I am not really in favor of big corporates when it comes to bitcoin network.
June 28, 2023, 04:37:17 AM
There were many Bitcoin ETF applications, some from pretty big, solid companies. All of them were rejected by the SEC, and as they didn't have any relevant policy changes since then, I expect this application to be rejected as well.
As Bitcoin is still stumbling around $30k, I also agree with those who say we aren't in the bull market yet.
Speaking of miners, perhaps they just want to make the most out of mining before the next halving event, and since the order delivery takes a lot of time, they're just working on it in advance.
I'm happy that there are some positive things happening, but I don't think it's enough to push Bitcoin forward into the bull market.
As Bitcoin is still stumbling around $30k, I also agree with those who say we aren't in the bull market yet.
Speaking of miners, perhaps they just want to make the most out of mining before the next halving event, and since the order delivery takes a lot of time, they're just working on it in advance.
I'm happy that there are some positive things happening, but I don't think it's enough to push Bitcoin forward into the bull market.
June 28, 2023, 01:25:48 AM
Pretty crazy that they are willing to spend millions on a technology which is ignored by many big giants. Amazon could have just bought all the miners in the world and can sell the mining power to retail and make millions but they never thought of this as a business. Google on the other hand with the help of Intel can make their own mining rigs and mine Bitcoins. Kudos to Riot for working on this ignoring all the FUD.
Because of the technology we have, it's really thought-provoking and surprising, but I think that's because they really see a good effect of it in the future. So it's okay for them to spend millions on it. So it is not surprising that its value will really increase in the future.
Even though a lot of Fud has been spread, there are still many people who invest millions of dollars in things like that that most people don't understand. This is what is called having a good future that can be given.
June 28, 2023, 12:58:20 AM
Pretty crazy that they are willing to spend millions on a technology which is ignored by many big giants. Amazon could have just bought all the miners in the world and can sell the mining power to retail and make millions but they never thought of this as a business. Google on the other hand with the help of Intel can make their own mining rigs and mine Bitcoins. Kudos to Riot for working on this ignoring all the FUD.
For some reason, big tech companies are not getting openly into the revolution of cryptocurrencies, they might be stacking up assets in the background and we may never know about it, but for the public, they have their hands out of it. I believe the biggest reason behind that is the legal issues surrounding cryptocurrencies all the time, and SEC doing everything it can to suppress the adoption of blockchain technology within the US.However, I believe all these tech giants will some day realize what an opportunity they have missed, and they might even enter the market but they will be pretty late unless they decide to create something of their own which will obviously not reach the level of Bitcoin but might gain some popularity as well.
June 27, 2023, 11:37:58 PM
well in 2015 we were at 400-500 in april
we brushed up to 700 by july.
and slowly wandered upwards into 2016
this rally reminds me of the 2015-2016 move
if it is we will get close to 55k in jan 2024
and top 500k in 202
Maybe other people think 🤔 this is going to happen thus cash is flowing into mining.
we brushed up to 700 by july.
and slowly wandered upwards into 2016
this rally reminds me of the 2015-2016 move
if it is we will get close to 55k in jan 2024
and top 500k in 202
Maybe other people think 🤔 this is going to happen thus cash is flowing into mining.
June 27, 2023, 11:14:50 PM
this is not big news
this is just riot doing a 2x hashrate to prep for the halving.
expect many asic farms to do similar when they are on contracts to need to stay above certain amount of coin reward income
this is just riot doing a 2x hashrate to prep for the halving.
expect many asic farms to do similar when they are on contracts to need to stay above certain amount of coin reward income
June 27, 2023, 09:53:38 PM
I wouldn't interpret it as bullish, mining has always been profitable, the price could drop by a lot, maybe to $10k or less, and it would still be profitable. Buying new mining equipment is a good way to increase your profit margins and make sure you won't be forced out of the market in the future. And 162M doesn't sound like a big deal.
I would because their action implies that they might be speculating that the bear market is presently over or will be over.
On Blackrock's ETF application, I was also skeptical about it because why were the cryptonews media again using an old storyline from 2021? However, it also made me think, why would Blackrock apply for an ETF during Gensler's crackdown on the cryptospace? This might be because they know for certain that the whole cryptospace market will not dump anymore.
June 27, 2023, 06:43:08 PM
I wouldn't interpret it as bullish, mining has always been profitable, the price could drop by a lot, maybe to $10k or less, and it would still be profitable. Buying new mining equipment is a good way to increase your profit margins and make sure you won't be forced out of the market in the future. And 162M doesn't sound like a big deal.
June 27, 2023, 10:07:26 AM
Yes this is pretty bullish because it’s a huge investment and next year is the halving. So obviously the smart money knows that Bitcoin is not going anywhere.
Why do you think just because some rich guy or company bought BTC or rigs it means we’re turning bullish? Do they ever predict the future? Do they have a working crystal ball of some sort?I’ve followed investors before who made exaggerated investments only to find themselves in a huge loss. It’s no indication that we’re bullish or that it’s “smart money” - it could be dumb money and you don’t even know it.
June 27, 2023, 08:36:11 AM
~
Based on these figures, Riot made around a $33 million profit off their bitcoins in those two months. So about $16.5 million monthly. This means if they keep selling Bitcoin at this rate for the next twelve months or so, they'll make almost $200 million, so they may or may not break even with their $162m asic investment depending on their operating costs, the bitcoins they sell (assuming they don't consider their Held Bitcoins sellable), and exactly how early the halving comes.
No, that's not how it works.
Riot sold $16.5 million and $17.6 million worth of mined Bitcoin, that's revenue, not profit!
https://www.riotplatforms.com/news-media/press-releases/detail/152/riot-platforms-reports-first-quarter-2023-financial
Quote
Total revenue for the three-months ended March 31, 2023 was $73.2 million, Net loss for the three-month period ended March 31, 2023 was $(55.7) million, Non-GAAP Adjusted EBITDA for the three-month period ended March 31, 2023 was $7.5 million
Pretty crazy that they are willing to spend millions on a technology which is ignored by many big giants. Amazon could have just bought all the miners in the world and can sell the mining power to retail and make millions but they never thought of this as a business. Google on the other hand with the help of Intel can make their own mining rigs and mine Bitcoins. Kudos to Riot for working on this ignoring all the FUD.
But don't forget the opportunity cost of money.
If Amazon can spend $1 mining to make $1.10 it's good.
If Amazon can spend $1 building a new data center for their cloud services and make $1.25 it's better.
Mining is not Amazons or Googles or IBMs main business, so there is a good chance they DID look at it and say, 'we can make more money doing something else'
For Riot and others mining is their business. But lets be honest, if for some reason someone went to them and gave them a really good business proposal showing that they should drop all their miners in a dumpster and reconfigure their data centers to house a toothpaste manufacturing facility because instead of $16.5 million a month they would be making $25 million a month. Two things would happen. (1) We would all be dumpster diving to get the miners and (2) everyone at Riot would have nice and bright white teeth. Joking example but it's a business they follow the money. If you think Riot or anyone else is mining in these major facilities for the good of BTC instead to the pursuit of profit then you don't follow business.
-Dave
Why doing this if you're so bullish on the price?:
https://www.riotplatforms.com/news-media/press-releases/detail/154/riot-announces-may-2023-production-and-operations-updates
https://www.riotplatforms.com/news-media/press-releases/detail/154/riot-announces-may-2023-production-and-operations-updates
Quote
Metric May 2023 April 2023
Bitcoin Produced 676 639
Bitcoin Held1 7,190 7,112
Bitcoin Sold 600 600
Average Net Price per Bitcoin Sold $27,568 $29,263
Bitcoin Produced 676 639
Bitcoin Held1 7,190 7,112
Bitcoin Sold 600 600
Average Net Price per Bitcoin Sold $27,568 $29,263
Based on these figures, Riot made around a $33 million profit off their bitcoins in those two months. So about $16.5 million monthly. This means if they keep selling Bitcoin at this rate for the next twelve months or so, they'll make almost $200 million, so they may or may not break even with their $162m asic investment depending on their operating costs, the bitcoins they sell (assuming they don't consider their Held Bitcoins sellable), and exactly how early the halving comes.
Let's say all this stuff pushes their 12-month revenue down to $160 million, they'll still be mostly even. But the problem with this is that they're not making a profit this way, especially since the new rigs are arriving next year. So they might actually suffer a loss in the next year if blocks don't go their way.
Pretty crazy that they are willing to spend millions on a technology which is ignored by many big giants. Amazon could have just bought all the miners in the world and can sell the mining power to retail and make millions but they never thought of this as a business.
How much has Riot made this year from mining?
https://www.marketwatch.com/investing/stock/riot/financials
Institutions and these large companies invest for the long term. Most retail invest in the short term and that’s why we still got bears around us. News like this is proof that you need to think crypto long term and not short term. Short term it can still break down $20K but what matters is that it stays above $20K next year and the following.
Why doing this if you're so bullish on the price?:
https://www.riotplatforms.com/news-media/press-releases/detail/154/riot-announces-may-2023-production-and-operations-updates
Quote
Metric May 2023 April 2023
Bitcoin Produced 676 639
Bitcoin Held1 7,190 7,112
Bitcoin Sold 600 600
Average Net Price per Bitcoin Sold $27,568 $29,263
Bitcoin Produced 676 639
Bitcoin Held1 7,190 7,112
Bitcoin Sold 600 600
Average Net Price per Bitcoin Sold $27,568 $29,263
Many people in the forum say that we are still not in a bull market, however, the actions of Blackrock and big mining companies like Riot Platforms tell us that it is now the right time to invest.
The Application-Specific Integrated Circuit (ASIC) order adds up to $162.9 million, making it a standout purchase even among a slew of similar investments from competing firms this year. The machines themselves, however, aren’t scheduled for delivery until December 2023, and won’t be deployed until the first quarter of 2024.[/i]
As any business deal, I believe they will have terms for compensation if one side of the deal breaks it. We just don't know what is the compensation cost if Riot change their minds and won't complete this deal.The Application-Specific Integrated Circuit (ASIC) order adds up to $162.9 million, making it a standout purchase even among a slew of similar investments from competing firms this year. The machines themselves, however, aren’t scheduled for delivery until December 2023, and won’t be deployed until the first quarter of 2024.[/i]
Many people in the forum who think market is still not in bull market, they are referring to the current timeframe of the market means: they and including me, think that currently market might be in uptrend but it is not going to last to the first quarter of 2024. As, these news are made now but yet both news are yet to be executed (fulfilled).
And when that will happen, it will only help BTC to break its ATH in the next Bull run which will come after the halving (well halving is also in the first quarter of 2024). And AFAIK, BTC is already going to be in Bull run so why creating so much suspense now that Bitcoin is in bull run while these are just statements. Or maybe i am being to pessimistic which generally i am not.
I disagree that halvings always help Bitcoin to make new all time highs. Effects of Bitcoin halvings will reduce with time when block rewards become smaller and smaller in next 3 or 4 halvings.And when that will happen, it will only help BTC to break its ATH in the next Bull run which will come after the halving (well halving is also in the first quarter of 2024). And AFAIK, BTC is already going to be in Bull run so why creating so much suspense now that Bitcoin is in bull run while these are just statements. Or maybe i am being to pessimistic which generally i am not.
Like in previous bear markets, Bitcoin did not fall under its previous all time high but in this bear market, Bitcoin fell under $19,000 which is the 2017 all time high. Price even fell to under $16,000 which is far below 2017 all time high.
Everything can happen in this market and if you have this suspicious mind, you will have more careful investment plan. You will not do high risk bet like selling your house and use all money to invest in Bitcoin.
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