Bitcoin mining firm Hive Blockchain will increase its hash rate by more than 1200 PH/s through these ASICs. Canaan Creative has been unable to meet demand for equipment, leading cryptocurrency mining companies to seek other manufacturers.
In recent days, Canadian Bitcoin mining company Hive Blockchain announced that it will buy 6,400 ASICs. They have an agreement with Chinese mining equipment manufacturer Canaan Creative, which is also publicly traded. The shortage in the number of these devices leads to turning to manufacturers other than Bitmain.
According to the announcement of the Canadian company, their computing power could reach 1200 PH/s. Besides, they said that the first 500 mining machines would arrive in May while the rest would do it monthly.
The major companies that focus on Bitcoin mining services are competing more forcefully. People recently learned that there would be no more Bitmain shipment until August 2021. This has forced mining companies to look for other companies that make this type of equipment.
Bitcoin Mining Firm Turns to Canaan
Given the fierce competition for as much hash rate as possible, Bitcoin mining companies see Canaan as a secure provider. Other firms, including Core Scientific and Riot Blockchain, have targeted large ASIC manufacturers like Bitmain and MicroBT.
However, Bitmain has not been able to meet the demand for equipment; this is why these firms are turning to alternative manufacturers. The trend towards a shortage of mining equipment has become increasingly latent. That could mean a great opportunity for Bitcoin miner manufacturers like Canaan and Ebang, among others.
Hive Blockchain had set itself the goal of reaching a computing power of 1,000 PH/s. Through the acquisition of the Canaan miners, they hope to surpass that cap. The equipment of this manufacturer is not as efficient as the S19 and M30S series. However, they are among the most renowned machines and have received a lot of acceptance.
The current rally in the price of Bitcoin has led to “resurrecting” old equipment. This has been particularly the case in countries where energy costs are low. These devices include Avalon 841, which has broad commercialization in Iran and Venezuela.
Hive Blockchain Doubles Its Purchase
This Canadian Bitcoin mining firm has doubled its purchase of Bitcoin mining equipment. Throughout 2020, the company purchased around 3,500 cryptocurrency mining devices, and that number has risen to 6,400 machines.
One of Hive Blockchain’s plans is to rank among the largest Bitcoin producers in North America. For that reason, they recently joined rival Riot Blockchain. In that way, they have become the second company of their kind to reach a valuation of USD 1 billion.
The cryptocurrency market has grown exponentially in the last year worldwide. This has led those who do this activity to find the most efficient way to extract coins. The low cost of energy in some countries has favored the rebirth of lower-performance equipment that contributes to the increase in hash rate.
By Alexander Salazar
