Key Points
- Riot Platforms, a Bitcoin mining company, has purchased Kentucky-based Block Mining to boost its operational capacity.
- The deal, worth $92.5 million, will add 1 EH/s to Riot’s self-mining hashrate, potentially increasing to 16 EH/s by 2025.
Riot Platforms, a Bitcoin miner, has bought Block Mining, a crypto mining firm based in Kentucky. The acquisition, valued at $92.5 million, is part of Riot’s strategy to expand its operational resources.
Details of the Acquisition
The company announced on July 24th that the acquisition boosts its self-mining hashrate by 1 EH/s immediately, with the potential to reach a total of 16 EH/s by the end of 2025. The purchase includes a $18.5 million cash payment and $74 million in Riot common stock.
CEO of Riot Platforms, Jason Les, stated that the acquisition expands their operations and puts them on the path towards their growth target of 100 EH/s. This is due to the combined 60 MW of existing developed capacity and the ability to rapidly scale to over 300 MW.
Future Investment and Previous Acquisition Attempts
Riot also has plans to invest an additional $32.5 million through 2025 to improve Block Mining’s power capacity. The company aims to increase Block Mining’s infrastructure to support 110 MW for self-mining operations by the end of 2024.
Following the announcement of the acquisition, Riot’s shares fell by 5.3% to $11.59. This acquisition follows Riot’s previous attempt to buy rival Bitfarms for $950 million, which was later withdrawn due to governance issues with Bitfarms’ board. Riot subsequently called for a special shareholder meeting to address these issues.
