US firm splashes out on 4,800 Bitcoin miners worth $34M
Pennsylvania software firm Integrated Ventures has announced the purchase of 4,800 Bitcoin (BTC) mining rigs from Chinese manufacturer Bitmain. The deal is worth just over $34 million and will see 400 of Bitmain’s Antminer model S19J’s delivered to Integrated Ventures each month for the next year.
Integrated Ventures partnered with Wattum Management — a mining solutions provider — to carry out the deal, with Wattum expected to help host and manage INTV’s mining operations. The mining rigs deliver 100 terahashes each, giving IV close to 0.5 million TH/s by the time the full shipment of mining rigs is delivered in 2022.
Based on Bitcoin’s current hash rate of 170 million TH/s, this gives the firm a sizable, if still relatively modest share of the coin’s hashing power. It’s worth noting that Bitcoin’s hash rate doubled in the past year alone, meaning IV’s equipment could feasibly be worth much less come next year.
Perhaps with this in mind, INTV secured downside price protection for 12 months as part of the deal, as well as the right to replace the current S19J mining rigs with newer models when they are released in the coming year.
Few would expect the cryptocurrency market to remain static for any great length of time, however, INTV calculates expected revenues of between $19 million and $21 million in the next 12 months, based on the current Bitcoin price of around $60,000.
CEO of Integrated Ventures, Steve Rubakh, said the deal effectively doubled the firm’s existing Bitcoin hashing power, adding that he was pleased to secure the purchase of mining equipment at a time when the hardware was scarce.
“The Company is very pleased to secure this large scale purchase agreement, especially during a period of scarce supply of mining hardware. Going forward, INTV is committed to deploy any raised capital for purchases of the mining equipment,” said Rubakh.