Business
Riot to Acquire Whinstone, Creating a US-Based Industry Leader in Bitcoin Mining
Combination of leading US-based Bitcoin miner with owner and operator of America’s largest Bitcoin hosting facility will create leading US-based corporate
About this update from Riot Platforms, Inc.
[{"type":"text","content":"Combination of leading US-based Bitcoin miner with owner and operator of America’s largest Bitcoin hosting facility will create leading US-based corporate pillar in support of the Bitcoin mining network\nCastle Rock, CO, April 08, 2021 (GLOBE NEWSWIRE) -- Riot Blockchain, Inc. (NASDAQ: RIOT) (\"Riot”, “Riot Blockchain” or the “Company\") announced today that it has signed a definitive agreement pursuant to which Riot will acquire Whinstone US, Inc. (“Whinstone”), including all of its assets and operations, for consideration of $80 million cash plus a fixed 11.8 million shares of Riot common stock, equal to an implied total transaction value of approximately $651 million based on Riot’s last closing price of $48.37. Whinstone is the owner and operator of North America’s largest Bitcoin hosting facility, with 300 MW in developed capacity and an attractive long-term power purchase agreementDiversifies Riot’s revenues and catapults Riot into a market-leading position in the Bitcoin mining and hosting businessCreates significant financial and operational synergies for RiotProvides a clear, and significantly de-risked, path to growth for Riot, as Whinstone’s facility can be rapidly expanded by an additional 450 MWTransaction valued at $651 million, $80 million payable in cash and remainder in shares of Riot common stock The acquisition of Whinstone is a transformative event for Riot and its shareholders. Riot views Whinstone as a foundational element in its strategy to become an industry-leading Bitcoin mining platform, on a global scale. Upon the closing of this acquisition, Riot is expected to be the largest publicly-traded Bitcoin mining and hosting company in North America, as measured by total developed capacity. “The acquisition of Whinstone is the most significant achievement in Riot’s growth to-date and positions Riot as an industry leader in Bitcoin mining,” said Jason Les, CEO of Riot. “After the consummation of this transaction, we will have created a very clear path for the Company’s future growth. Riot will wholly own the largest Bitcoin mining facility in North America, with very low power costs, and one of the most talented development teams in the industry. Whinstone will serve as the foundation of Riot’s Bitcoin mining operations, upon which we will drive our goal of increasing the American footprint in the global Bit...