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On July 24, Riot Platforms purchased Block Mining for $92.5 million, significantly enhancing its operational capabilities and geographical presence.
A recent press release from Riot Platforms indicated that the acquisition was financed through $18.5 million in cash and $74 million in common stock. Block Mining has the potential to earn up to $32.5 million by 2025, dependent on obtaining additional power purchase agreements to increase capacity.
Riot Platforms Total Capacity Grows to 2 GW
This acquisition encompasses 60 megawatts (MW) of existing operational capacity, with intentions to expand to 110 MW by the conclusion of 2024 and further possibilities to exceed 300 MW in Kentucky.
The announcement also noted that the acquisition would instantly enhance Riot’s self-mining hash rate by 1 EH/s, with the potential to elevate it to 16 EH/s by the end of 2025.
“The acquisition of Block Mining signifies a major milestone for Riot as we continue to broaden our growth pipeline,” stated @JasonLes_, CEO of Riot. “This transaction enables us to diversify our operations nationally and expedite Block Mining’s growth in Kentucky. With a… https://t.co/vlt648TLDo pic.twitter.com/M2B2GyyyzL
— Riot Platforms, Inc. (@RiotPlatforms) July 23, 2024
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Block Mining currently manages two locations in Kentucky with a total capacity of 60 MW, which can be expanded to 155 MW. At present, 23 MW are allocated for self-mining, 19 MW are prepared for immediate deployment, and 18 MW are leased to Bitcoin mining clients.
The facilities receive electricity from the Tennessee Valley Authority (TVA) and Big Rivers Electric Corporation within the Midcontinent Independent System Operator (MISO) region.
Block Mining Management Team to Remain
The management team overseeing the Kentucky sites will continue to operate the facilities and spearhead expansion initiatives, utilizing local connections, Riot’s financial backing, and a fixed-price hash rate agreement with MicroBT.
“The acquisition of Block Mining signifies a major milestone for Riot as we continue to broaden our growth pipeline,” remarked Riot Platforms CEO Jason Les. “This transaction enables us to diversify our operations nationally and expedite Block Mining’s growth in Kentucky.”
“In evaluating potential acquisition partners, it became clear that Riot Platforms not only aligns with our vision for an energy-efficient Bitcoin miner, but also shares a complementary culture that emphasizes teamwork, creativity, and an unwavering commitment to excellence,” stated Block Mining co-founder and CEO Michael Stoltzner.
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