Riot Blockchain 1 GW energy station to expand Bitcoin mining ops in Texas

Saif Naqvi
Riot Blockchain
Source: Pixabay

Bitcoin mining giant Riot Blockchain has initiated the development of a 1 gigawatt (GW) energy station to expand its Bitcoin mining and hosting capabilities in Navarro County, Texas.

Source: Twitter

According to a statement released on Wednesday, the expansion project will be split up into different phases. The first phase has already begun with the development of an initial 400 megawatts capacity on a 265-acre site, with immersion-cooled mining and hosting operations expected to start in July 2023.

The firm estimates that the total cost of the first phase of the expansion will be about $333 million, which is scheduled to be invested over the remainder of 2022, 2023, and the first quarter of 2024.

Speaking on the project’s completion, Riot CEO Jason Les said “Upon completion of the expansion, Riot’s developed capacity will total 1.7 GW, establishing the Company among the largest bitcoin mining operations globally”.

Based out of Colorado, Riot Blockchain has had immense success since pivoting into the Bitcoin mining business. The firm had recently filed to sell $500 Million worth of its stock to fund operations and future investments as it looked to expand its mining capabilities, among other initiatives.

However, the bulk of Riot’s main operations is in Texas, where it expects to have over 80,000 Antminer mining rigs by the fourth quarter of 2022. The rigs are expected to generate 7.7 exahash per second in mining power, making Riot one of the biggest block reward miners globally.

Texas becoming a haven for Bitcoin miners?

Bitcoin experts believe that Texas is soon emerging as a mini-crypto hub, with low energy prices and minimal regulatory hurdles attracting a host of crypto-miners in the state.

Several lawmakers suggest that crypto would benefit the state’s power grid, which has known to struggle with fluctuating energy prices and sporadic services. In turn, the Texas grid operator expects crypto miners to increase electricity demand by up to 6 gigawatts by mid-2023, more than enough to power every home in Houston.

Recently, Fort Worth, a city in Texas, became the first to mine Bitcoin in the U.S. after adopting a resolution to accept three Bitcoin mine donations. The resolution added

“The City Council recognizes cryptocurrency is a technology with profound implications and great potential for innovation, as well as a rapidly evolving ecosystem