Colorado-based Bitcoin mining company Riot Platforms has acquired Kentucky-based Block Mining for $92.5 million. The acquisition will increase Riot’s operational capacity by adding 1 EH/s immediately, with the potential to expand to 16 EH/s by the end of 2025, according to a July 24 press release.
The acquisition comprises an $18.5 million cash payment and $74 million in Riot common stock.
“With a combined 60 MW of existing capacity and a pipeline to quickly scale to over 300 MW, this acquisition expands our operations and brings us closer to our growth target of 100 EH/s,” said Riot Platforms CEO Jason Les.
Riot also plans to invest an additional $32.5 million through 2025 to enhance Block Mining’s power capacity, which includes two operational sites in Kentucky. By the end of 2024, Riot aims to expand Block Mining’s infrastructure to support 110 MW for self-mining operations.
Following the announcement, Riot’s shares dropped 5.3% to $11.59, according to Google Finance data.
This acquisition comes a few months after Riot proposed acquiring rival Bitfarms for $950 million. However, Riot withdrew the proposal due to challenges in engaging with Bitfarms’ board about a potential merger and requested a special shareholder meeting to address governance issues at the Toronto-based competitor.
