On July 24, Riot Platforms announced the acquisition of Block Mining for $92.5 million, significantly enhancing its operational capacity and geographical reach.
Riot Platforms Expands to 2 GW Capacity with Block Mining Acquisition
Riot Platforms has expanded its operational capacity and geographical footprint by acquiring Block Mining for $92.5 million. The acquisition, announced on July 24, was funded through $18.5 million in cash and $74 million in common stock. Block Mining stands to earn up to $32.5 million by 2025, contingent upon securing additional power purchase agreements to further boost capacity.
Riot Platforms’ Capacity Jumps to 2 GW
The acquisition brings an immediate increase of 60 megawatts (MW) of operational capacity, with plans to expand to 110 MW by the end of 2024 and potential to surpass 300 MW in Kentucky. Riot Platforms’ self-mining hash rate will see an immediate boost by 1 EH/s, with projections to reach 16 EH/s by the end of 2025.
Block Mining operates two sites in Kentucky with a combined capacity of 60 MW, expandable to 155 MW. Currently, 23 MW are dedicated to self-mining, 19 MW are ready for immediate deployment, and 18 MW are leased to Bitcoin mining tenants. These sites receive power from the Tennessee Valley Authority (TVA) and Big Rivers Electric Corporation within the Midcontinent Independent System Operator (MISO) region.
Continued Management and Future Plans
The existing management team at Block Mining’s Kentucky sites will remain in place to oversee operations and expansion efforts, utilizing local relationships, Riot’s financial resources, and a fixed-price hash rate agreement with MicroBT.
Riot Platforms CEO Jason Les commented, “The acquisition of Block Mining marks a significant milestone for Riot as we continue to expand our growth pipeline. This transaction allows us to diversify our operations nationally and accelerate Block Mining’s expansion in Kentucky.”
Block Mining co-founder and CEO Michael Stoltzner added, “In assessing potential acquisition partners, it became evident that Riot Platforms not only shares our vision for an energy-efficient Bitcoin miner but also a complementary culture that values teamwork, creativity, and a relentless pursuit of excellence.”
With this acquisition, Riot Platforms reinforces its position as a leading player in the Bitcoin mining industry, poised for significant growth and expansion in the coming years.
Powered by Crypto Expert BD
Follow us on Twitter: https://x.com/CryptoExpert_BD
Join our Telegram channel: https://t.me/CryptoExpert_BD
