Bitcoin mining companies frantically stockpile mining machines, causing stock prices to soar

Bitcoin’s explosive rally has calmed down. Bitcoin hit an all-time high of $24,273 on Sunday, but has retreated about 6% at the time of writing, according to CoinDesk. But while Bitcoin fell today, institutional Bitcoin mining stocks rose. The stocks of these publicly traded Bitcoin mining companies performed wildly on Monday, all rising to varying degrees :

• Marathon Patent Group (NASDAQ: MARA) gained 24%.

• Riot Blockchain (NASDAQ: RIOT) gained 10%.

• Bit Digital (NASDAQ: BTBT) gained 12%.

• CleanSpark (NASDAQ:CLSK) rose 18%

Marathon , CleanSpark, Riot Blockchain and Bit Digital all generate revenue through bitcoin mining. As the price of bitcoin has more than doubled since September, these companies should start to see increased revenue and be bid up by the market at higher prices.

The rise of these companies may be related to the continuous large-scale purchase of Bitcoin mining machines by these representative mining institutions to expand the scale of computing power.

Among them, Riot Blockchain, a Nasdaq-listed cryptocurrency mining company, has signed a deal with mining giant Bitmain to purchase 15,000 Antminers.

According to the announcement on December 21, the transaction totals US$35 million, including 3,000 Ant S19 Pro and 12,000 S19j Pro. It is expected that the new mining machines will be received and deployed from May to October 2021, and the company's mining computing power will eventually increase by another 65%.

After the arrival of the new mining machines, combined with the existing computing power, it is expected that Riot's share of Bitcoin mining computing power will be significantly increased. The specific data will increase from the previously announced 2.3EH/s to 3.8EH/s.

In fact, since the beginning of 2020, Riot has been continuously receiving and deploying new mining machines, including this deployment, and the receipt time will last until the fourth quarter of 2021.

In addition to the deployment and expansion of mining machines, Riot is also continuously improving and updating its technology. Recently, Riot tried new liquid cooling technology in its mining hardware in Texas to test solutions for effective mining in difficult temperature environments. The program, which will begin in the first quarter of 2021, will "evaluate the potential for higher productivity and lower cost mining opportunities in Texas."

Separately, a major North American blockchain hosting provider announced its expansion plans, ordering an additional 58,000 S19 series Antminers as part of an agreement with the Chinese mining hardware manufacturer.

According to the announcement , the Bitmain deal is expected to facilitate purchases by Core Scientific customers by September 2021.

The purchase agreement will bring the total purchases of next-generation Bitcoin ( BTC ) miners, S19 and S19 Pro, to 76,024 over the past 16 months, which Core Scientific claims makes them the largest hosting provider in North America.

By introducing the latest Bitmain Bitcoin miners, Core Scientific also aims to expand the operational total hash rate of the 19 series of computing power hosted by Core Scientific to 7.26 exahash.

Kevin Turner, CEO and president of Core Scientific, commented on the deal with Bitmain:

I am very pleased to note that more than 17,000 of Bitmain's next-generation Bitcoin mining machines are now running stably and efficiently at Core Scientific's facilities. This helps us compete head-on with the global hash rate and solidify our position as the largest hosting provider in North America.

Recently, Core Scientific was appointed as Bitmain’s sole overseas repair center for under-warranty repairs in North America, as users no longer need to ship their hardware devices to Asia.