Business
Riot Announces the Acquisition of Block Mining - Expands Riot's Total Potential Power Capacity To 2 Gigawatts
Acquisition adds 60 Megawatts ("MW") of current operational capacity with the potential to quickly expand to 110 MW this year under existing agreements, and a
About this update from Riot Platforms, Inc.
[{"type":"text","content":"Acquisition adds 60 Megawatts (\"MW\") of current operational capacity with the potential to quickly expand to 110 MW this year under existing agreements, and a pipeline to build to over 300 MW in KentuckyTransaction immediately adds 1 EH/s to Riot's existing self-mining hash rate with a potential to add up to a total of 16 EH/s by the end of 2025Expands Riot's operating footprint into Kentucky with an experienced on-the-ground management teamCASTLE ROCK, Colo., July 23, 2024 /PRNewswire/ -- Riot Platforms, Inc. (NASDAQ: RIOT) (\"Riot\" or \"the Company\"), an industry leader in vertically integrated Bitcoin mining, is pleased to announce that it has acquired Block Mining, Inc. (\"Block Mining\"), a Kentucky-based vertically integrated Bitcoin miner, for total consideration at closing of $92.5 million. Riot paid the purchase price through $18.5 million of cash from its balance sheet plus $74 million of Riot common stock. Additional consideration, up to a maximum of $32.5 million, can be earned by Block Mining through 2025 through the execution of additional power purchase agreements to add additional power capacity. The acquisition of Block Mining immediately increases Riot's hash rate, expands Riot's footprint geographically, and provides exposure to additional energy markets outside of ERCOT. For additional details about this transaction, please refer to the investor presentation on Riot's website.\n\n \n \n \n \n \n \n\n \nBlock Mining is a vertically integrated Bitcoin miner consisting of two operational sites, both in Kentucky, totaling 60 MW of operational capacity with potential to expand up to 155 MW. Of the existing and operational 60 MW, 23 MW are currently being used for self-mining, 19 MW are vacant and available for immediate miner deployment, and 18 MW are contracted by Bitcoin mining tenants under hosting agreements. Approximately 8 MW of the 18 MW of contracted hosting agreements have change of control provisions and will be available for self-mining by Riot in 60-90 days. Riot intends to further expand Block Mining's two sites, targeting 110 MW for self-mining operations by the end of 2024. Additionally, Block Mining owns a greenfield expansion opportunity also in Kentucky, adjacent to an existing substation, presenting an opportunity to develop 60 MW and with potential to expand to 150 MW.\nBlock Mining is a ca...