Riot Blockchain has signed a colocation mining services contract with Coinmint, operator of one of the largest digital currency data centers in North America. Riot Blockchain, one of the few Nasdaq listed public cryptocurrency mining companies in the United States, specializes in cryptocurrency mining operations, focusing on bitcoin and general blockchain technology to internally develop businesses, and joint ventures.
Relocating to New York Mining Colocation Facility
According to the announcement, with the hosting arrangement, it is believed that power costs like the Oklahoma City facility’s heat and environmental operating issues can decrease. In addition to this, the hosting arrangement can provide a path to diversify its mining operations. The Coinmint mining colocation facility offers a cost-effective solution to Riot’s mining needs while allowing Riot to expand its total hashing capacity potentially.
Coinmint has been operating a digital currency data center in a former Alcoa Aluminum smelter in Massena, New York, since 2018. With the given abundance of hydroelectric and wind generation in the area, Coinmint offers a material electrical economic advantage. The company has assessed the risks of this transition related to coronavirus (COVID-19).
The management decided to relocate a portion of the company’s recently purchased Bitmain Antminer S17s to Coinmint’s Massena, New York mining colocation facility for initial operational, security, and reporting controls testing and verification. They believed that the risks are reasonably mitigated due to the plug and play infrastructure of Coinmint’s facilities.