Riot Platforms Strengthens Position with $92.5M Block Mining Purchase

Riot Platforms, a well-known Bitcoin mining business with headquarters in Colorado, has revealed that it has paid $92.5 million to acquire Block Mining, a rival company with headquarters in Kentucky. This action is expected to greatly increase Riot’s operational capability. $18.5 million in cash and $74 million in Riot common stock are exchanged in this trade. Riot thus boosts its self-mining hashrate by 1 EH/s right away, with a goal of reaching 16 EH/s by the end of 2025.

Boosting Infrastructure and Capacity

The acquisition not only brings additional hashrate but also expands Riot’s operational infrastructure. Riot Platforms CEO Jason Les stated, “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.”

Riot plans to invest an additional $32.5 million through 2025 to enhance Block Mining’s power capacity, which includes two operational sites in Kentucky. By the end of 2024, Riot aims to increase Block Mining’s infrastructure to support 110 MW for self-mining operations. This expansion aligns with Riot’s strategic growth goals and strengthens its position in the competitive Bitcoin mining industry.

Following the acquisition news, Riot’s shares dropped by 5.3%, closing at $11.59, according to Google Finance. This acquisition comes shortly after Riot’s proposed $950 million acquisition of Bitfarms, which was subsequently withdrawn due to engagement issues with Bitfarms’ board. Riot then requested a special shareholder meeting to address governance issues at Bitfarms.