With “the Bitcoin halving” fast approaching, more and more companies are shifting their focus to BitcoinBitcoin mining.
Riot Blockchain, a Nasdaq-listed crypto miningmining and investment company, announced on Thursday that it will be realigning its business strategy this year. The company plans to sell off its cryptocurrencycryptocurrency exchange RiotX and instead target its efforts almost entirely on Bitcoin mining. Riot cited changes in the “regulatory environment” and “cybersecurity risks” as reasons for ceasing the exchange.
As part of the announcement, Riot said it has partnered with financial services firm XMS Capital Partners to help it “navigate the dynamic bitcoin landscape and advise the Company on potential strategic transactions in bitcoin mining related operations." Riot had also previously worked on mining other cryptocurrencies like Bitcoin Cash (BCH) and Litecoin (LTC).
Following the announcement, Riot’s stock dropped as much as 5 percent. It has since recovered somewhat, currently trading for around $1.41 per share—though it is still down more than 13 percent over the last five days.
Riot Blockchain did not immediately respond to Decrypt’s request for comment.
The timing of Riot’s realignment is likely not coincidental, with the Bitcoin halving set to occur sometime in May. The halving refers to block mining rewards from the Bitcoin network decreasing from 12.5 to 6.25 bitcoins. While hardly unanimous, many market analysts believe the halving could result in an increase in Bitcoin’s price.
Riot announced earlier this month that it is expanding its Bitcoin mining facility in Oklahoma City, which houses crypto mining equipment from Chinese mining giant Bitmain. The company also recently escaped a lawsuit from the US Securities and Exchange Commission (SEC), which was investigating the company after it had pivoted from biotech to crypto in 2018.
This latest announcement is part of a growing trend of blockchain companies focusing on Bitcoin mining in the American Midwest. Yesterday, Peter Thiel-backed Layer 1 opened a Bitcoin mining facility in Texas. Northern Data AG and Whinstone US are also building a Bitcoin mining facility and datacenter in the state. And last year, Bitmain opened a Bitcoin mining farm in Rockdale, Texas.
As the halving draws nearer, how many more companies will shift their attention to the competitive Bitcoin mining industry?
Daily Debrief Newsletter
Start every day with the top news stories right now, plus original features, a podcast, videos and more.
Bitcoin Halving
A collection of stories exploring the halving of the Bitcoin mining reward and the implications for the wider community.
The first satoshi mined on the Bitcoin blockchain after last week’s halving event, mined by Bitcoin mining pool ViaBTC, went up for auction—and fetched a sizable seven-figure sum.
The auction of “epic sat” 1,968,750,000,000,000, hosted on the cryptocurrency exchange CoinEX, ended Thursday with a final bid of 33.3 Bitcoin ($2.13 million worth) winning the piece of Bitcoin history. It's not yet clear who won the auction.
The auction of the Epic Sat began on April 20, the day after the halving, wit...
It's been roughly four days since Bitcoin (BTC)’s fourth halving event occurred, and market watchers have amassed enough data to give an early verdict on its effects.
For one, Bitcoin’s supply inflation rate has collapsed, as expected. Each Bitcoin block—mined roughly once every ten minutes—now produces just 3.125 new BTC, half of its former 6.25 BTC block subsidy.
Before the halving, 900 BTC was generated daily, fueling a 1.7% inflation rate. The new figures are roughly equivalent to 450 BTC pe...
Earn a free on-chain NFT by taking our course, "Bitcoin Halving 101: What it Means for Miners and Investors."
Every four years, the amount of Bitcoin doled out to cryptocurrency miners halves in a process imaginatively known as the Bitcoin halving (or halvening, though the term has fallen out of favor in recent years). Here’s why—and how—it works.
Bitcoin’s supply limit
To understand the Bitcoin halving, we must first understand the theory behind its supply.
The inventor of Bitcoin, Satoshi Naka...