To buy ESS Metron, Riot Blockchain paid $25 million in cash, with the remaining $25 million made up of up to 715,413 Riot shares
One of the largest cryptocurrency mining businesses in the United States paid $50 million for Ferrie Franzmann Industries (formerly known as ESS Metron), a producer of electrical equipment. As a result, the latter will be able to feed Riot’s new mining equipment with a consistent supply of infrastructure.
Expansion of the bitcoin mining company
The overall transaction value is $50 million, with the bitcoin mining company paying $25 million in cash and using resources from its balance sheet to complete the transaction. The remaining half was made up of up to 715,413 Riot common stock shares.
The bitcoin mining company aims to expand to 700 MW and hopes to gain from the acquisition by leveraging ESS Metron’s “highly developed electrical equipment solutions.” ESS Metron previously assisted the company in the development of unique immersion-cooling technology for its 200 MW expansion project.
According to Jason Les, Chief Executive Officer of the bitcoin mining company, the acquisition is “another milestone in establishing” his company as a leader in its area.
“Riot’s strategic position across the electrical supply chain is significantly enhanced as the company will benefit from ESS Metron’s existing relationships with leading electrical suppliers globally,” he added.
ESS Metron CEO Stephen Howell stated that his company will continue to provide “best-in-class support” to its growing customer base and will assist the bitcoin mining company in its expansion ambitions.
The American bitcoin mining business is one of the industry’s behemoths, with the ticker symbol “RIOT” on Nasdaq. It bought Whinstone US, the owner-operator of North America’s single largest BTC mining and hosting facility, a few months ago.
Previous Riot Purchases
The Blockchain boosted its mining power earlier this year by purchasing 42,000 Bitmain S19 Antminers (a Hong Kong-based cryptocurrency mining product manufacturer).
The purchase, estimated to be valued at at least $138 million, was made as part of the company’s intention to increase its bitcoin mining hashrate to 7.7 EH per second.
“By nearly doubling its planned hash rate capacity, Riot continues to take great strides forward in growing both the Company’s and the United States’ share of the global network hash rate,” – said Megan Brooks.