The deal immediately increases Riot's hashrate by 1 EH/s while expanding its Kentucky operations.
Leading US #bitcoin #mining company Riot Platforms has acquired Kentucky-based Block Mining in a deal valued at $92.5 million.
- The deal, announced on July 24, includes $18.5 million in cash from Riot's reserves and $74 million in Riot common stock. In addition, Block Mining may receive up to an additional $32.5 million depending on its performance through 2025.
In an official press release, Riot said the acquisition of Block Mining immediately increased hash, expanded geographic reach and provided access to additional energy markets outside of the Electric Reliability Council of Texas (ERCOT) region.
Commenting on the acquisition, Michael Stolzner, CEO and co-founder of Block Mining, said:
In reviewing potential acquisition targets, it became clear that Riot Platforms not only shares our vision of an energy efficient bitcoin #miner , but also complements our corporate culture that emphasizes teamwork, creativity and a relentless pursuit of excellence. Together, we look forward to leveraging our combined strengths and expertise to build the first bitcoin mining data center that will propel us to the forefront of the industry.
Block Mining operates two sites in Kentucky with a total capacity of 60 MW, expandable to 155 MW. Currently, 23 MW is used for independent mining, 19 MW is spare capacity and 18 MW is contracted capacity. Approximately 8 MW of the contracted capacity will be available to Riot in 60-90 days. Riot plans to increase capacity to 110MW by the end of 2024, with the option to expand to 150MW in Kentucky.
the same time, the Block Mining team will continue to manage current operations in Kentucky and lead the expansion efforts, utilizing local relationships, Riot's financial resources and a long-term fixed price #hashrate agreement with Micro BT.
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