In order to boost its operating capacity by 16 EH/s, Colorado-based Bitcoin mining business Riot Platforms purchased its rival Block Mining, located in Kentucky.Â
Bitcoin miner Riot Platforms has acquired Block Mining, a Kentucky-based crypto mining firm, for $92.5 million to expand its operational resources.
The agreement instantly increases the company’s self-mining hashrate by 1 EH/s, “with a potential to add up to a total of 16 EH/s by the end of 2025,” according to a press release issued on July 24.
Riot common shares valued at $74 million and a cash payment of $18.5 million are part of the transaction. CEO of Riot Platforms, Jason Les said:Â
“With a combined 60 MW of existing developed capacity, and a pipeline to rapidly scale to over 300 MW, this acquisition expands our operations and further enhances our path towards our growth target of 100 EH/s.”
In order to increase Block Mining’s power capacity—which comprises two operational locations in Kentucky—Riot also intends to invest an additional $32.5 million until 2025. Riot plans to expand Block Mining’s infrastructure to 110 MW by the end of 2024 to facilitate self-mining activities.
According to statistics from Google Finance, Riot shares fell 5.3% to $11.59 amid the news. A few months prior, Riot Platforms had suggested paying $950 million to acquire Bitfarms, one of its competing companies.
Riot later canceled the plan, claiming it could not discuss a possible merger with Bitfarms’ present board. Then, Riot called a special shareholder meeting to discuss governance concerns at the rival company located in Toronto.
