US firm splashes out on 4,800 Bitcoin miners worth $34M

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.

Our top trading bots

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.

Keep reading on Cointelegraph
How to navigate cryptocurrency tax implications amidst the CPA shortage
Cryptocurrency is a hot topic worldwide, especially with prices of Bitcoin (BTC), Ethereum (ETH) and other cryptocurrencies hitting higher thresholds and...
What the launch of the FBI crypto task force means for the digital asset space
On Feb. 17, United States Deputy Attorney General Lisa Monaco announced at the Munich Cyber Security Conference the formation of the new task force “dedicated...
Hemp grower crowdfunds court case, tokenizes shares in settlement
Hemp grower Apothio has raised $330,000 for a lawsuit against Kern County, California via what’s known as an Initial Litigation Offer on the Republic investment...
Wall Street financial advisor LionTree explores crypto payments
Wall Street financial advisor that helped Amazon acquire MGM studios this year is exploring crypto payment options.LionTree, a popular financial advisor...
MGA Entertainment and Ioconic launch L.O.L. Surprise NFT platform in 20,000 retail stores worldwide
Toy company MGA entertainment announced Tuesday that the first nonfungible token (NFT)-based cards for the L.O.L. Surprise trading card game are now available...
How low will Bitcoin dip? | Find out now on The Market Report w/ Michael Kong
Join Cointelegraph host and analyst Benton Yaun alongside resident market experts Jordan Finneseth and Marcel Pechman as they break down the latest news...
AMC Theatres CEO considers adding Shiba Inu as payment for ticket purchases
AMC Entertainment is in the process of updating its technical infrastructure to allow consumers to pay online with Bitcoin (BTC), Ethereum (ETH), Litecoin...
Top 5 cryptocurrencies to watch this week: BTC, SOL, AVAX, ALGO, AXS
Bitcoin (BTC) continues to face strong selling as bulls attempt to flip the psychological level at $60,000 into support. Some analysts believe that Bitcoin...
Stripe builds new crypto team for payments three years after dropping Bitcoin
U.S. fintech giant Stripe is hiring a new blockchain team to enable crypto payments for its users. The $100 billion company is returning to the crypto sector...
Buying Bitcoin is like entering a minefield, Bank of Russia exec says
The Russian central bank has once again reiterated its negative stance on Bitcoin (BTC), with one of the bank’s top executives comparing the cryptocurrency...
Active Bitcoin addresses surged 30% in late July, data shows
Amid a renewed bullish trend on the cryptocurrency markets over the past few weeks, more users have moved into trading Bitcoin (BTC), the world’s largest...
Ethereum options data shows traders' mixed opinions on ETH's future
After reviewing Ether (ETH) options for June 25, one might think that traders either became overly optimistic or ultra-bearish. Currently, there are large...
Korean gov’t clarifies crypto regulatory roles of different agencies
Over the past year or so, the crypto community in South Korea has had to adapt to a suite of new regulations and government frameworks tailored to the growing...
«Anything But» Useful: Former US Fed Chair Attacks Bitcoin, Again
Recently Visa’s CEO Alfred Kelly argued that the company is not going to start looking into crypto-systems unless cryptos shift from being commodities to...
Zcash Developers Used Chernobyl Waste in a Secret Experiment
Zcash is one of the alternative coins, which enters the top-100 cryptocurrency list by mailing list. In accordance with it, the devs held it at 3,000...