Riot Platforms, a prominent Bitcoin mining company in the United States, has purchased Block Mining, a company based in Kentucky, for a total of $92.5 million.
The agreement entails the transfer of $18.5 million in cash from Riot’s financial reserves, as well as $74 million worth of Riot’s ordinary shares. Block Mining has the potential to collect an additional $32.5 million based on performance indicators until 2025.
Riot stated that the acquisition had increased its hash rate, expanded its geographical coverage, and provided access to various energy markets beyond the Electric Reliability Council of Texas (ERCOT) region.
Michael Stoltzner, the CEO and co-founder of Block Mining, noted that Riot Platforms shares their vision for a Bitcoin miner that is energy-efficient, along with a culture that encourages teamwork, creativity, and a tireless pursuit of perfection.
Block Mining runs two sites in Kentucky, each with a capacity of 60 MW. These facilities can be expanded to a total capacity of 155 MW. Riot intends to increase the capacity of the sites to 110 MW by the end of 2024.
Additionally, they have the potential to develop a new site in Kentucky with a capacity of up to 150 MW. The team at Block Mining will maintain control over the existing operations in Kentucky and lead the company’s efforts to expand.
Riot’s purchase of Block Mining follows its unsuccessful bid to acquire Bitfarms, a company that has been resisting Riot’s $950 million takeover offer since June 13. Nevertheless, on July 24, a Canadian panel thwarted Bitfarms’ tactic, thereby eliminating a major obstacle to Riot’s takeover endeavor.
