[Bitcoin miner Riot Platforms acquires competitor Block Mining for $92.5 million]
Colorado-based Bitcoin mining company Riot Platforms has acquired Kentucky-based competitor Block Mining for $92.5 million, aiming to boost its operating capacity to 16 EH/s. The transaction includes $18.5 million in cash and $74 million in Riot common stock.
The acquisition will immediately add 1 EH/s of self-operated mining computing power to Riot, with plans to increase total computing power to 16 EH/s by the end of 2025. In addition, Riot plans to invest an additional $32.5 million by 2025 to enhance Block Mining’s power capacity, with the goal of expanding its infrastructure to support 110 MW of self-operated mining operations by the end of 2024.
Riot shares fell 5.3% to $11.59 following the news.
The acquisition comes just months after Riot Platforms proposed acquiring Bitfarms for $950 million. Riot later withdrew the proposal, citing an inability to engage with Bitfarms' current board about a potential merger and requesting a special shareholder meeting to address its governance issues.
