BitNile Holdings, Inc., a diversified holding company announced that the Company has invested a total of $127 million on its bitcoin mining operations at its Michigan data center, including $114.7 million in the purchase of bitcoin miners from BITMAIN Technologies Ltd. and $12.3 million for the purchase of the data center and infrastructure improvements. This is an update to the Company’s previous press releases dated November 10, 2021 and November 18, 2021, which initially announced the partnership between BitNile and Bitmain. With the recently announced payment in full of $66 million in senior secured debt, other than the loans on the Company’s portfolio of hotels, which are non-recourse to the parent company, the Company is virtually debt free. With the Company’s recent improvement in its financial condition, it anticipates that over time it will invest up to an additional $70 million to $80 million in bitcoin miners and infrastructure improvements.
“We are on schedule with our delivery of bitcoin miners and the buildout of our data center. Given our recent payoff of debt and improvement in our financial condition, we anticipate our efforts to continue smoothly, including the funding of our additional investment in bitcoin miners and data center infrastructure.”
The Company recently issued its monthly operations report for March 2022, indicating that it has more than doubled its miner count to 4,754 S19j Pro Antminers in its possession, which once installed, is expected to generate a combined processing power of approximately 500 petahashes per second, the computational power that is used to mine Bitcoin. During the month of March 2022, BitNile mined 31.7 Bitcoin. To date, BitNile has mined a total of 132.6 Bitcoin.
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Milton “Todd” Ault, III, the Company’s Executive Chairman, stated, “We are on schedule with our delivery of bitcoin miners and the buildout of our data center. Given our recent payoff of debt and improvement in our financial condition, we anticipate our efforts to continue smoothly, including the funding of our additional investment in bitcoin miners and data center infrastructure.”
As previously disclosed, BitNile has entered into purchase agreements with Bitmain for a total of 20,600 Bitcoin miners, including 4,600 environmentally friendly S19 XP Antminers that feature a processing power of 140 terahashes per second (“TH/s”) and 16,000 S19j Pro Antminers that feature a processing power of 100 TH/s.
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BitNile began receiving 300 S19j Pro Antminers per month in November 2021 in accordance with the purchase agreement with Bitmain. Beginning in March 2022, this schedule increased to an expected 2,300 miners per month. Once all 20,600 miners are fully deployed and operational, BitNile is expected to achieve mining production capacity of approximately 2.24 exahashes per second.
The Company notes that all estimates and other projections are subject to the actual delivery and installation of Bitcoin miners, the volatility in Bitcoin market price, the fluctuation in the mining difficulty level, and other factors that may impact the results of production or operations.
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