In the heart of Texas, a transformation is taking place. Corsicana, a city known for its rich history and vibrant culture, is now home to the world’s largest Bitcoin mining site. This article explores the development of Riot Platforms’ (RIOT) Bitcoin Mining flagship facility and its impact on the global cryptocurrency landscape.
A New Era for Corsicana
Corsicana, traditionally known for its oil and agriculture, is now making headlines in the world of digital currencies. The city is the site of a massive Bitcoin mining operation, which has quickly become home to the world’s largest Bitcoin mining facility. This shift represents a new era for Corsicana, positioning it at the forefront of the digital economy.
The Corsicana development has had a profound economic impact on the local community. The project has created numerous jobs, ranging from technical roles to administrative positions. Furthermore, the operation has stimulated the local economy by increasing demand for goods and services.
Riot Platforms has been consistently providing updates on the development of this site, and having been fortunate to recently visit the location, it's evident that the pictures, like the one above, do not capture its true scale.
The 266-acre site, acquired in April 2022, is vast. Although initially not ideal for a Bitcoin mining facility, significant progress has been made since construction began in October 2022. This has meant approximately 1.5 million tons of dirt, equivalent to 75,000 dump truck loads, have been moved, with 189 miles of electrical underground piping supporting 2,560 Immersion cooling tanks installed.
However, the site's true advantage lies in its proximity to a 5-gigawatt (GW) switch, literally located across the road, which has enabled Riot Platforms to secure a 1 GW connection.
There are over 500 Riot Platforms and contractor personnel on site, working 24/7 towards the company’s initial Phase 1 goal, of bringing 400 MW power online for 2024, of the four 100 MW buildings, A1, A2, B1 and B2. These will be powered by 400 MW, hosting 61,440 mining machines and generating a hash rate of approximately 16 EH/s. Once completed, the total hash rate by the end of the year, across both sites, is planned to reach 31.5 EH/s. Building A1 was recently energized in April 2024, producing a hash rate of 3.5 EH/s, with Building A2 about to come online. The company, assuming they exercise all the additional purchase options with MicroBT, have an ambitious growth target of 100 EH/s by 2027.
Energy Efficiency and Sustainability
The Corsicana Bitcoin Mining Site is designed with a strong emphasis on sustainability. The facility leverages renewable energy sources, including solar and wind power, to minimize its carbon footprint. Riot Platforms’ Rockdale facility, which has been operating 200 MW of immersion cooling since 2021, is believed to be the largest single-site deployment of this technology for Bitcoin mining in the world.
Building on the lessons learned from the Rockdale facility, Riot Platforms has fully integrated these insights into the Corsicana site. The 1 GW site will utilize 100% advanced immersion cooling systems to maintain optimal temperatures for the mining rigs, thereby enhancing energy efficiency.
The advantages of using immersion cooling technology in Texas are substantial. Texas's hot climate provides a challenging operating environment. To maximize uptime and execute on the company’s power strategy, Riot Platforms needs consistent and reliable performance, which immersion cooling technology provides. This stable environment reduces miner issues, extending their operational lifespan and aiding in the amortization of the upfront installation costs. For instance, the immersion cooling tanks in Building A1 added 30% to the total capital expenditure.
As the rate of machine efficiency improvements in the market begins to slow, the company aims to utilize these miners for as long as possible. Riot Platforms is deploying latest-generation immersion technology for all of its buildings at Corsicana. These tanks are equipped with lids to prevent debris entry and larger pumps to increase fluid circulation by 30%. Additionally, the company will install purpose-built miner machines from MicroBT that require no modifications.
Construction Budget - Phase 1
Developing Corsicana into the world's largest Bitcoin mining facility requires a substantial budget for both construction and mining equipment. Over the past three years, Riot Platforms has effectively and efficiently grown through a series of at-the-market offerings. In the first quarter of 2024, the company raised $500 million by selling nearly 41 million shares, securing full funding to complete the entirety of Phase 1 and the next 200 MW, scheduled for completion in the first half of 2025. Despite this funding milestone, the company plans to continue raising capital to support future hash rate growth initiatives.
The budget for Phase 1 can be seen in the table below:
Whilst the hash rate cost may initially appear high at $40 million per EH/s, the costs to complete the remaining site should be significantly lower, as much of the construction costs to get the site into a usable state have already been incurred.
Power Strategy
It should be noted that there is no power purchase agreement (PPA) for the Corsicana site and consequently, the company will be purchasing unhedged power on the open market. Riot Platforms are targeting planned energy costs at the facility in 2024 to be approximately $35 per MWh, slightly higher than the average of $22 per MWh achieved in 2023.
This strategy could potentially benefit the company, as there are many instances when the market price of power is lower than the hedged price at the Rockdale facility and on some occasions, the cost of power can even be negatively priced, meaning the company could then be compensated for utilizing power.
Taking into account the efficiency of these new MicroBT mining machines and the level of power targeted, Riot Platforms believe they are more likely to produce Bitcoin at a lower power cost than many of their peer miners, over the next couple of Epoch cycles.
Mining Machines
Riot Platforms current mining fleet, the majority of which is installed at their Rockdale facility, is delivering 27.7J/TH. However with the current order of 132,340 MicroBT machines, with an average efficiency of 19.7 J/TH, being installed will take the total efficiency down to 21.8 J/TH. The company has a further option to purchase 265,000 MicroBt M66S machines that have an average efficiency of 18.5 J/TH. The order is based on total hash rate and therefore if MicroBT were to introduce more powerful and efficient miners, these can be incorporated into future deliveries. By installing these new mining machines and increasing fleet efficiency, Riot will also reduce the amount of power, and therefore the cost, required to mine Bitcoin.
Summary
In summary, the development of the Corsicana Bitcoin Mining Site represents a significant milestone in the evolution of the Bitcoin mining industry. The project showcases the potential of Bitcoin mining to drive economic growth, promote sustainability, and establish new technological hubs. As we look to the future, Corsicana stands as a beacon of innovation, illuminating the path forward for the global cryptocurrency community.
Today, Corsicana Bitcoin stands as the world’s largest Bitcoin mining hub. The facility will eventually produce a significant portion of the world’s Bitcoin, contributing to the security and stability of the Bitcoin network. Moreover, the site serves as a model for other cities and countries looking to tap into the potential of Bitcoin mining.
