Riot Blockchain Purchases Block Mining in $92.5m Deal
Colorado-based Bitcoin mining company Riot Platforms has completed the acquisition of Block Mining, a crypto mining firm based in Kentucky, in a move aimed at bolstering its operational capacity by 16 EH/s.
The acquisition, valued at $92.5 million, marks a strategic expansion for Bitcoin miner Riot Platforms. The company announced the acquisition in a press release on July 24, highlighting that the deal immediately boosts its self-mining hashrate by 1 EH/s, with the potential to reach a total of 16 EH/s by the end of 2025.
The transaction involved an $18.5 million cash payment along with $74 million in Riot common stock. Riot Platforms CEO Jason Les expressed enthusiasm about the acquisition, stating, “With a combined 60 MW of existing developed capacity, and a pipeline to rapidly scale to over 300 MW, this acquisition expands our operations and further enhances our path towards our growth target of 100 EH/s.”
As part of its growth strategy, Riot Platforms plans to inject an additional $32.5 million into Block Mining’s power capacity by 2025. This investment will focus on enhancing the infrastructure of Block Mining’s two operational sites in Kentucky. By the close of 2024, Riot aims to ramp up Block Mining’s infrastructure to support 110 MW for self-mining activities.
Following the acquisition news, Riot’s shares experienced a 5.3% decline, settling at $11.59, according to data sourced from Google Finance.
This acquisition comes on the heels of Riot Platforms considering the acquisition of another rival, Bitfarms, for $950 million a few months back. However, Riot later withdrew its proposal, citing challenges in engaging with Bitfarms’ current board regarding a potential merger. Subsequently, Riot requested a special shareholder meeting to address governance concerns at the Toronto-based competitor.
In a dynamic industry landscape, Riot Platforms continues to make strategic moves to strengthen its position in the crypto mining sector.
