Riot Platforms acquired Block Mining on July 24 for $92.5 million, greatly expanding its operational capacity and geographical footprint.
According to a recent press release by Riot Platforms, the purchase was funded with $18.5 million in cash and $74 million in common stock. Block Mining can earn up to $32.5 million by 2025, contingent on securing further power purchase agreements to expand capacity.
Riot Platforms Total Capacity Increases to 2 GW
The acquisition includes 60 megawatts (MW) of current operational capacity, with plans to expand to 110 MW by the end of 2024 and further potential to reach over 300 MW in Kentucky.
The announcement also stated that the acquisition would immediately increase Riot’s self-mining hash rate by 1 EH/s, with the potential to boost it to 16 EH/s by the end of 2025.
"The acquisition of Block Mining marks a significant milestone for Riot as we continue to expand our growth pipeline," said @JasonLes_, CEO of Riot. "This transaction allows us to diversify our operations nationally and accelerate Block Mining’s expansion in Kentucky. With a… https://t.co/vlt648TLDo pic.twitter.com/M2B2GyyyzL
— Riot Platforms, Inc. (@RiotPlatforms) July 23, 2024
Block Mining currently operates two sites in Kentucky with a combined capacity of 60 MW, which can expand to 155 MW. Currently, 23 MW are dedicated to self-mining, 19 MW are ready for immediate deployment, and 18 MW are leased to Bitcoin mining tenants.
The sites receive power from the Tennessee Valley Authority (TVA) and Big Rivers Electric Corporation within the Midcontinent Independent System Operator (MISO) region.
Block Mining Management Team to Stay
The management team of the Kentucky sites will continue to run the facilities and drive expansion efforts, leveraging local relationships, Riot’s financial resources, and a fixed-price hash rate agreement with MicroBT.
“The acquisition of Block Mining marks a significant milestone for Riot as we continue to expand our growth pipeline,” said Riot Platforms CEO Jason Les. “This transaction allows us to diversify our operations nationally and accelerate Block Mining’s expansion in Kentucky.”
“In assessing potential acquisition partners, it became evident that Riot Platforms not only shares our vision for an energy-efficient Bitcoin miner, but also a complementary culture that values teamwork, creativity, and a relentless pursuit of excellence,” said Block Mining co-founder and CEO Michael Stoltzner.
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