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Following the acquisition of 4,800 new S19J mining rigs from Bitmain, a US company plans to more than double its Bitcoin hashing capacity.
Integrated Ventures, a Pennsylvania-based tech company, has announced the acquisition of 4,800 Bitcoin (BTC) mining rigs from Chinese producer Bitmain. The agreement is worth slightly more than $34 million, and it calls for 400 Bitmain Antminer model S19Js to be shipped to Integrated Ventures each month for the next year.
To complete the transaction, Integrated Ventures partnered with Wattum Management, a mining solutions company, with Wattum expected to operate and oversee INTV’s mining operations. The mining rigs each supply 100 terahashes, bringing IV up to 0.5 million TH/s by the time the entire shipment of mining rigs arrives in 2022.
Based on Bitcoin’s current hash rate of 170 million TH/s, this gives the company a sizable, but still modest, share of the coin’s hashing capacity. It is worth mentioning that Bitcoin’s hash rate has more than doubled in the last year alone, implying that IV’s equipment could be worth even less next year.
Perhaps with this in mind, INTV negotiated a 12-month price guarantee as part of the contract, as well as the right to replace the existing S19J mining rigs with newer ones when they are launched later this year.
Few would anticipate the blockchain industry to stay stagnant for an extended period of time, but INTV estimates sales of $19 million to $21 million in the next 12 months, based on the latest Bitcoin price of about $60,000.
Integrated Ventures CEO Steve Rubakh stated that the transaction essentially doubled the company’s current Bitcoin hashing capacity, and that he was pleased to insure the procurement of mining equipment at a time when the hardware was scarce.
“The Company is overjoyed to have secured this large-scale purchase agreement, especially at a time when mining hardware is in short supply. INTV is committed to deploying some collected capital for the procurement of mining equipment in the future,” said Rubakh.