Bitmain powers Bitcoin mining – The Cryptonomist

In a significant development within the Bitcoin mining sector, Nasdaq-listed Iris Energy has made a major acquisition of Bitmain latest Antminer S21s, totaling 1.4 exahash per second (EH/s). 

This strategic move, valued at $19.6 million, not only marks a substantial increase in Iris Energy’s mining capacity, but also exemplifies the evolving landscape of efficient and sustainable cryptocurrency mining.

Mining: Iris Energy increases Bitcoin mining capacity with $19.6 million acquisition of Bitmain’s S21 Antminers

In a strategic move to strengthen its Bitcoin mining operations, Nasdaq-listed Iris Energy recently purchased 1.4 exahash per second (EH/s) of Bitmain’s latest S21 Antminers. 

This substantial purchase, worth $19.6 million, not only demonstrates Iris Energy’s commitment to expanding its mining arsenal, but also highlights the evolving cryptocurrency mining landscape, with companies competing for greater efficiency and higher hashrates.

Iris Energy’s calculated move

Bitmain, a renowned company in the field of cryptocurrency mining equipment, unveiled its S21-series Antminers just over two weeks ago. 

These miners are prized for their remarkable efficiency, boasting a power consumption of less than 20 joules per terahash (J/T). 

Capitalizing on the launch of these advanced mining rigs, Iris Energy, a Nasdaq-listed Bitcoin mining company with the code IREN, quickly made its intentions clear by purchasing 1.4 EH/s of Bitmain’s S21 miners.

The acquisition price of $19.6 million corresponds to about $14 per terahash. Notably, $2.9 million of this amount will be deferred and paid a year after shipment, demonstrating a calculated financial strategy. 

The newly purchased S21 units will be deployed at Iris Energy’s mining facility in Childress, Texas, as specified in the official announcement. 

This strategic move is expected to significantly increase Iris Energy’s self-extraction capacity from 5.6 EH/s to as much as 7 EH/s. This represents a substantial 25 percent expansion in mining capacity.

Beyond Bitmain and Bitcoin mining: a look at Antminer S21s

Although Iris Energy did not specify the exact model of the Antminer S21s it purchased, it revealed that these machines offer an impressive efficiency of 17.5 J/TH. This efficiency suggests that Iris opted for the air-cooled variant of the S21 series. 

Given the individual capacity of these machines, capable of 200 terahash per second, and the total purchase volume of 1.4 EH/s, it is reasonable to estimate that Iris has purchased about 7,000 units. 

With mining operations now running at 7 EH/s, Iris Energy expects capacity to soar in the near future to an impressive 9.4 EH/s, surpassing the previous forecast of 9.1 EH/s.

Iris Energy’s Childress data center is currently undergoing a substantial expansion, designed to accommodate a significant power load of 80 megawatts. This expansion project is critical to facilitate the deployment of the new Antminer S21s. 

Iris expects the expansion to be completed in early 2024, demonstrating its proactive approach to growth in the competitive cryptocurrency mining sector.

Iris Energy’s decision to acquire Bitmain’s advanced miners comes at a time when competitors such as Canaan and Microbt are introducing their next-generation mining machines. 

These new models offer peak hashrates and greater efficiency, prompting mining companies to seek technological advantages in a changing landscape. 

For example, Peak Mining, a subsidiary of Northern Data Group, recently entered into a major $150 million deal with Microbt. 

This deal will see Peak Mining acquire 7 EH/s from Microbt’s Whatsminer M53S+, M53S++, M50S+, and M50S++ models. Similarly, Canaan unveiled its liquid-cooled A1466I machine, capable of delivering 170 terahash per second with an efficiency of 19.5 J/T.

In addition, Microbt is preparing for the launch of the M60 machine, scheduled for Oct. 24, with an energy efficiency of less than 20 joules per terahash.

Sustainable mining practices

Iris Energy is proud to conduct its mining operations using 100 percent renewable energy sources. This commitment to environmental sustainability aligns with the broader industry trend to adopt green energy solutions for cryptocurrency mining. 

In addition, Iris Energy has ambitious plans to further increase its mining capacity to a remarkable 30 EH/s over time, demonstrating a strong commitment to the long-term growth of the industry.

It is worth noting that Iris Energy has seen a significant increase in the value of its shares this year, with an impressive 150 percent increase. However, in the past month, IREN shares have declined by 27%. 

This drop in share value coincided with a broader market downturn influenced by geopolitical tensions in the Middle East, which had a ripple effect on cryptocurrency markets.

Conclusion

Iris Energy’s acquisition of 1.4 EH/s of Bitmain’s S21 Antminers reflects a strategic move aimed at strengthening its position in the competitive Bitcoin mining landscape. 

The acquisition not only underscores the growing importance of efficiency and hashrate in mining operations, but also highlights the company’s commitment to sustainable and environmentally friendly mining practices. 

As the cryptocurrency mining industry continues to evolve and intensify, Iris Energy’s expansion plans and technological advances position it for a promising future in the digital gold rush.