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
Chance of a price crash increases as Cardano (ADA) futures near $1B
The impressive 816% gain of Cardano's ADA coin in 2021 catapulted the smart contract platform's market capitalization to $61 billion. To fully grasp how...
S&P launches cryptocurrency indexes, debuting with Bitcoin and Ether
S&P Dow Jones Indices, a major global resource for index-based data and research, has introduced its first cryptocurrency indices amid a renewed surge on...
Biggest one day USDC print in history marks lowest Bitcoin dominance in years
More USD Coin (USDC) was printed on April 30 than at any time in the dollar-backed stablecoin’s existence, as just over $3 billion was minted in one fell...
2 key Ethereum price metrics prove pro traders are behind ETH’s new highs
As Ether (ETH) made a $2,800 all-time on April 29, so did its futures open interest. The $8.5 billion figure marks a 52% monthly increase and shows robust...
Gemini users can now buy Bitcoin with Apple Pay and Google Pay
Major American cryptocurrency exchange Gemini now lets its users purchase cryptocurrencies like Bitcoin (BTC) with Apple Pay and Google Pay.According to...
XRP Climbs 13% In Rally
Investing.com - XRP was trading at $1.40544 by 20:26 (00:26 GMT) on the Investing.com Index on Wednesday, up 13.44% on the day. It was the largest one-day...
Nexo faces lawsuit for liquidating $5m in client collateral amid XRP delisting
United States-based crypto lending platform Nexo is facing a class-action lawsuit over suspension of XRP services on Dec. 23, 2020. The lead plaintiff,...
Bitcoin HODLers are not selling: Inactive BTC supply hits 3-month low
Long-time Bitcoin (BTC) HODLers are refraining from selling their holdings, on-chain data from Glassnode shows. According to Glassnode’s "BTC Percent Supply...
Institutional crypto managers report record AUM despite U.S. inflows plummeting
According to digital asset investment manager, CoinShares, institutional demand in the U.S. has declined slightly however European funds are still buying.According...
Bitcoin Surpasses $3,500 on the Anniversary of the $19,000 Record
Today, December 17 marks an anniversary since bitcoin hit the $19,000 high for the first time ever. Moreover, this day marks a petty recovery of the most...
Facebook Reviewed Ban on Crypto-Ads, ICOs Still Not in Favor
It has finally happened. Nearly half a year ago Facebook implied a ban on the ads of cryptos promising to review the policy when it finds viable solutions...
The US Judge Defines Cryptos As Commodities, Backing Up CFTC Decision
One of the US rulers has finally explained what cyber money is. Neither are they fiat, nor assets, following the decision of the American, New York region,...
New Report Shows China’s Intentions to Forbid Foreign Exchanges, ICOs
Earlier in mid-January Bloomberg, referring to people aware of the case, reported that Chinese government planned to ban internal access to Chinese...
NEO jumped by 26%
Cryptocurrency NEO became the ninth currency by market capitalization in the world, ahead of IOTA and approaching Stellar. According to the CoinMarketCap...
Why Banks Should be Scared of Bitcoin
On December 15, Bitcoin hit a new record as it reached almost $18,000 on the Bitstamp exchange. At the same time, total market capitalization of all Bitcoins...