Riot Platforms, a major Bitcoin mining company, has purchased Block Mining, a Kentucky-based mining firm, for $92.5 million. The acquisition was announced on July 24 and includes $18.5 million in cash from Riot’s funds and $74 million in Riot’s common stock.
Block Mining has the potential to earn an additional $32.5 million based on its performance through 2025. This deal not only boosts Riot’s mining capacity but also gives them access to new energy markets outside the Electric Reliability Council of Texas (ERCOT).
Expansion Plans in Kentucky
Block Mining currently operates two sites in Kentucky with a combined capacity of 60 megawatts (MW). Riot plans to expand this to 110 MW by the end of 2024. There’s also an opportunity to develop a new 60 MW site, with the potential to expand to 150 MW, next to an existing substation in Kentucky.
Riot’s CEO, Jason Les, said the acquisition helps the company diversify its operations nationally and expand into Kentucky. The deal also positions Riot to grow its operations in Kentucky to over 300 MW, speeding up its goal of reaching 100 exahashes per second (EH/s).
Michael Stoltzner, co-founder and CEO of Block Mining, stated that this partnership offers the company a cost-effective way to expand into new energy markets in Kentucky.
Riot’s Recent Activities and Legal Dispute
In June, Riot saw a 50% increase in its deployed hashrate, enabling the company to mine 255 Bitcoin. This increase was partly due to new hardware installations at its Texas facilities in Corsicana and Rockdale.
Additionally, the mining company made headlines with a $950 million buyout offer for rival mining firm Bitfarms in mid-June. On July 24, a Canadian tribunal blocked Bitfarms’ “poison pill” strategy, which aimed to prevent Riot’s takeover attempt, clearing a major hurdle for Riot.
The mining company, through its subsidiary Whinstone US, is also involved in a legal dispute over a Bitcoin mining operation. The conflict involves allegations of fraud, conspiracy, and securities violations, with Whinstone US seeking damages of over $1 million..
