Riot Platforms Acquires Block Mining for $92.5M, Expands Hash Rate and Market Reach
The leading American Bitcoin mining company Riot Platforms has acquired the Kentucky-based firm Block Mining in a transaction valued at $92.5 million.
The deal, announced on July 24, includes $18.5 million in cash from Riots reserves and $74 million in Riot common stock. Additionally, Block Mining could receive up to $32.5 million more, based on performance metrics through 2025.
Riot Platforms Drops $92.5M on Block Mining
In its official press release, Riot said that it has instantly boosted its hash rate, broadened its geographical reach, and gained entry to additional energy markets outside the Electric Reliability Council of Texas (ERCOT) region by acquiring Block Mining.
Commenting on the latest acquisition, Michael Stoltzner, CEO and Co-founder of Block Mining, said,
In assessing potential acquisition partners, it became evident that Riot Platforms not only shares our vision for an energy-efficient Bitcoin miner, but also a complementary culture that values teamwork, creativity, and a relentless pursuit of excellence. Together, we are excited to leverage our collective strengths and expertise to build Bitcoin-first data centers that will propel us to the forefront of the industry.
Block Mining operates two Kentucky sites with a combined 60 MW capacity, expandable to 155 MW. Currently, 23 MW is used for self-mining, 19 MW is vacant, and 18 MW is contracted. About 8 MW of the contracted power will be available for Riots use in 60-90 days. Riot plans to expand the sites to 110 MW by the end of 2024 and has a greenfield expansion opportunity in Kentucky for up to 150 MW.
Meanwhile, Block Minings team will continue managing the current Kentucky operations and spearhead expansion efforts, utilizing their local connections, Riots financial resources, and the long-term fixed-price hash rate agreement with MicroBT.
Riots Acquisition of Bitfarms
The acquisition of Block Mining comes two months after Riots attempt to acquire the rival Bitcoin miner Bitfarms.
As reported earlier, Bitfarms has been opposing Riots $950 million buyout bid since June 13, arguing it undervalues the company. It even employed a poison pill strategy dubbed the rights plan to block the hostile takeover.
However, Riot scored a win on July 24 as a Canadian tribunal ended Bitfarms strategy, removing a significant barrier to Riots takeover attempt.
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Text source: CryptoPotato
