Riot Platforms called the shortage of chips a business risk
The firm has listed more than 40 risk factors for various aspects of the business.
The ongoing shortage of chips and the need to increase the hashrate may negatively affect the financial condition of Riot Platforms. This follows from the mining company's annual report.
"The ongoing global supply chain crisis, combined with increased demand for computer chips, has led to a shortage of semiconductors, which has led to problems in the production of miners," the document says.
As a result, manufacturers shifted the increased costs to customers. Riot acknowledged that until the global semiconductor crisis is resolved, they will have to bear higher than usual costs for the purchase and deployment of equipment.
In December, the company agreed to purchase 66,560 miners from MicroBT, which it plans to install at a facility in Corsicana, Texas.
Riot relies mainly on immersion cooling and admits that there may be problems with using this method on such a large scale.
One of the risk factors in the company is considered to be high competition, which forces to increase the hashrate in order to maintain profitability. To this end, Riot must increase its fleet of equipment through new purchases, including to replace retiring installations.
In this process, the company faces the risks of possible design flaws of new devices, as well as potential financing difficulties in the event of a drop in the price of bitcoin.
Source: https://forklog.com/news/v-riot-platforms-nazvali-defitsit-chipov-riskom-dlya-biznesa
