Miner Riot Platforms said in a statement yesterday (23) that it will acquire another Bitcoin miner Block Mining for US$92.5 million, bringing its 110 megawatt (MW) mining operating capacity target by the end of 2024 closer. . Meanwhile, mining stocks have seen their market values rise by 10% to 20% in the past two weeks.
Riot Platforms acquires Block Mining for $90 million
Riot noted that it has acquired Bitcoin miner Block Mining for $92.5 million, which it expects to immediately add 60 megawatts of operating capacity.
Riot reportedly paid $18.5 million in cash and $74 million in Riot common stock:
We plan to further expand Block Mining's two sites in Kentucky, with the goal of expanding to 110 MW of self-dig operating capacity by the end of the year.
It added, “This will bring Riot’s total potential power capacity to 2 gigawatts (GW).”
Riot emphasized that the acquisition will immediately increase the company’s current mining hashrate by 1 EH/s and is expected to reach 16 EH/s by the end of 2025.
Last month, Riot attempted a hostile merger with Bitfarms, another miner, by increasing its stake. The two parties have yet to reach a consensus.
(The mining company merger and acquisition case is spreading! Riot hits back at Bitfarms and continues to increase its stake to 14%: there is no communication between the two parties)
Riot CEO: computing power target 100 EH/s
Riot CEO Jason Les said in a statement that the acquisition allows the company to diversify its operations across the country and accelerate both parties’ expansion in Kentucky:
As a means to achieve our goal of growing our current capacity of 60 MW to 300 MW, this acquisition also further strengthens the possibility of achieving our goal of 100 EH/s computing power by the end of 2027.
However, the acquisition news doesn't appear to have had a positive impact on its stock price, with Riot (RIOT) shares down 5.31% by Tuesday's close and down 25.08% year to date.
Mining stock market value rises sharply in two weeks
In the past two weeks, the market value and stock price of major mining companies have rebounded sharply from the relative lows on July 10, and have grown by more than double-digit percentages.
Marathon Digital (MARA)
First, Marathon Digital took the lead with a market value of US$5.34 billion to US$7.56 billion, a growth of approximately 41.5%. Since then, even if it fell back to US$6.99 billion, it still has an outstanding performance of 30.8%.
Riot Platforms (RIOT)
Then, even though Riot's stock price has performed poorly so far this year, its market value has increased from US$2.64 billion to US$3.47 billion in the past two weeks, a growth rate of approximately 31.4%.
Hut 8 (HUT)
Finally, there is Hut 8 Mining, whose market value has grown from US$1.38 billion to US$1.76 billion, an increase of approximately 27.5%.
(Look at the bottom from Bitcoin mining data: most mining machines no longer meet the cost, and half of the mining companies are losing money)
This article Riot Platforms acquired Block Mining for US$92.5 million, and the market value of mining companies increased significantly in two weeks. It first appeared on Chain News ABMedia.
