- Block Mining was acquired by Riot Platforms on July 24 for $92.5 million, significantly increasing its operational capacity and geographic reach.
Riot Platforms just released a press release stating that $18.5 million in cash and $74 million in common stock were used to fund the purchase. By 2025, block mining might bring in up to $32.5 million, provided more power purchase agreements are obtained to increase capacity.
Riot Platforms Reachs a 2 GW Total Capacity
There is currently 60 megawatts (MW) of operating capacity included in the transaction; by the end of 2024, it is expected to grow to 110 MW, and there is further potential to reach over 300 MW in Kentucky.
Additionally, the release said that Riot’s self-mining hash rate would increase by 1 EH/s immediately following the acquisition, and that it might reach 16 EH/s by the end of 2025.
With the potential to grow to 155 MW, Block Mining presently runs two facilities in Kentucky with a combined capacity of 60 MW. Presently, 18 MW are leased to Bitcoin mining tenants, 19 MW are available for instant deployment, and 23 MW are devoted to self-mining.
Within the Midcontinent Independent System Operator (MISO) region, the sites are served by Big Rivers Electric Corporation and the Tennessee Valley Authority (TVA).
The Management Team for Block Mining Will Remain
The Kentucky sites’ management team will keep running the operations and spearheading development plans by utilizing Riot’s financial resources, local connections, and a fixed-price hash rate agreement with MicroBT.
According to Riot Platforms CEO Jason Les, “the acquisition of Block Mining represents a significant milestone for Riot as we continue to expand our growth pipeline.” We are able to expand Block Mining’s presence in Kentucky and diversify our activities across the country thanks to this deal.
Block Mining co-founder and CEO Michael Stoltzner stated, “After evaluating potential acquisition partners, it became clear that Riot Platforms not only shares our vision for an energy-efficient Bitcoin miner, but also has a complementary culture that values teamwork, creativity, and a relentless pursuit of excellence.”
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
