According to CryptoPotato, leading American Bitcoin mining company Riot Platforms has acquired Kentucky-based Block Mining in a transaction 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. Additionally, Block Mining could receive up to $32.5 million more based on performance metrics through 2025.

Riot stated in its official press release that the acquisition 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. Michael Stoltzner, CEO and Co-founder of Block Mining, commented on the acquisition, highlighting the shared vision for an energy-efficient Bitcoin miner and a complementary culture that values teamwork, creativity, and excellence. He expressed excitement about leveraging their collective strengths and expertise to build Bitcoin-first data centers.

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 Riot’s 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. Block Mining’s team will continue managing the current Kentucky operations and spearhead expansion efforts, utilizing their local connections, Riot’s financial resources, and the long-term fixed-price hash rate agreement with MicroBT.

The acquisition of Block Mining follows Riot’s attempt to acquire rival Bitcoin miner Bitfarms. Bitfarms has been opposing Riot’s $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 takeover. However, Riot scored a win on July 24 as a Canadian tribunal ended Bitfarms’ strategy, removing a significant barrier to Riot’s takeover attempt.