Riot Platforms Acquires Block Mining for $92.5 Million, Expands Hash Rate and Market Reach

Major US Bitcoin mining company Riot Platforms has acquired Kentucky firm Block Mining in a deal valued at $92.5 million.

The deal, announced July 24, includes $18.5 million in cash from Riot 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 Platforms drops $92.5 million in block mining

In its official press release, Riot said it has instantly increased its hash rate, expanded its geographic reach, and gained entry into additional energy markets outside of the Electric Reliability Council region of Texas (ERCOT) through the acquisition of Block Mining.

Commenting on the latest acquisition, Michael Stoltzner, CEO and co-founder of Block Mining, said:

“In evaluating potential acquisition partners, it became clear that Riot Platforms not only shares our vision of an energy-efficient Bitcoin miner, but also a complementary culture that values ​​teamwork, creativity and the tireless pursuit of excellence. Together, we are excited to leverage our collective strengths and expertise to build Bitcoin-first data centers that will propel us to the forefront of the industry.”

Block Mining operates two Kentucky sites with a combined capacity of 60 MW, expandable to 155 MW. Currently, 23 MW is used for automining, 19 MW is vacant and 18 MW is contracted. About 8MW 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 true field expansion opportunity in Kentucky to 150 MW.

In the meantime, the Block Mining team will continue to manage the current Kentucky operations and lead expansion efforts, using their local connections, Riot’s financial resources, and the long-term fixed-price hash rate agreement with MicroBT.

Riot’s acquisition of Bitfarms

The acquisition of Block Mining comes two months after Riot attempted to acquire rival Bitcoin miner Bitfarms.

As previously reported, Bitfarms has opposed Riot’s $950 million buyout offer since June 13, arguing that it undervalues ​​the company. It even employed a poison pill strategy called the “rights plan” to block a “hostile” takeover.

However, Riot scored a victory on July 24 when a Canadian court struck down Bitfarms’ strategy, removing a major barrier to Riot’s takeover attempt.

SPECIAL OFFER (Sponsored) Binance Free $600 (Exclusive to CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

2024 LIMITED OFFER on BYDFi Exchange – Up to $2888 Welcome Reward, Use this link to register and open a 100 USDT-M position for free!