Riot Platforms, a Bitcoin mining company based in Colorado, has recently made a significant move by acquiring Block Mining, a competitor from Kentucky, for a whopping $92.5 million. This strategic merger is aimed at boosting Riot’s operational capacity by 16 EH/s, adding to its self-mining hashrate. The acquisition involved a cash payment of $18.5 million and $74 million worth of Riot common stock.
According to Riot Platforms CEO Jason Les, the combined 60 MW of existing developed capacity, along with the potential to scale up to over 300 MW, will play a crucial role in achieving the company’s growth target of 100 EH/s. In addition to the acquisition cost, Riot plans to invest an extra $32.5 million by 2025 to enhance Block Mining’s power capacity. This investment will focus on improving the infrastructure at Block Mining’s two operational sites in Kentucky, with the goal of supporting 110 MW for self-mining operations by the end of 2024.
Following the announcement of the acquisition, Riot’s shares experienced a slight dip of 5.3% to $11.59, as reported by Google Finance. This move comes after Riot Platforms previously expressed interest in acquiring another competitor, Bitfarms, for a staggering $950 million. However, due to challenges in engaging with Bitfarms’ current board regarding the potential merger, Riot decided to withdraw its proposal. Instead, Riot requested a special shareholder meeting to address governance concerns at Bitfarms, which is based in Toronto.
The acquisition of Block Mining marks a significant step for Riot Platforms as it aims to strengthen its position in the competitive Bitcoin mining industry. With plans to expand its operational capacity and enhance its infrastructure, Riot is poised for growth and increased efficiency in the coming years. The strategic investment in Block Mining’s power capacity underscores Riot’s commitment to staying at the forefront of the rapidly evolving cryptocurrency mining sector.