The post Riot Platforms Acquires Block Mining to Boost Capacity to 2 Gigawatts appeared on BitcoinEthereumNews.com.

Joerg Hiller Jul 24, 2024 07:39 Riot Platforms, Inc. has acquired Block Mining, Inc., significantly expanding its operational and power capacity in the Bitcoin mining sector. Riot Platforms, Inc. (NASDAQ: RIOT), a leading Bitcoin mining company, has announced the acquisition of Block Mining, Inc., a Kentucky-based Bitcoin miner, for $92.5 million. This strategic move significantly enhances Riot’s operational capacity and geographical footprint. Expansion of Operational Capacity The acquisition immediately adds 60 megawatts (MW) of operational capacity to Riot’s portfolio, with the potential to expand to 110 MW by the end of the year under existing agreements. Additionally, Block Mining has a pipeline to build over 300 MW in Kentucky. This deal also increases Riot’s self-mining hash rate by 1 EH/s, with a potential to reach up to 16 EH/s by the end of 2025. Geographical and Market Diversification By acquiring Block Mining, Riot is expanding its operational footprint into Kentucky, diversifying from its existing operations in Texas. This move allows Riot to tap into new energy markets, including those serviced by the Tennessee Valley Authority (TVA) and Big Rivers Electric Corporation in the Midcontinent Independent System Operator (MISO) region. MISO is known for facilitating one of the world’s largest energy markets, offering demand response programs that enable sophisticated power strategies. Financial Details and Future Prospects The purchase price of $92.5 million was paid through $18.5 million in cash and $74 million in Riot common stock. An additional consideration of up to $32.5 million can be earned by Block Mining through 2025 based on the execution of additional power purchase agreements. Riot plans to further expand Block Mining’s two sites, targeting 110 MW for self-mining operations by the end of 2024, with potential greenfield expansion opportunities adjacent to existing substations. Management Insights Jason Les, CEO of Riot, expressed enthusiasm about the…

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Filed under: News - @ July 26, 2024 7:26 am