- Riot acquires Kentucky-based Bitcoin miner Block Mining for $92.5M, expanding its hash rate and geographical footprint beyond ERCOT.
- The acquisition adds 60 MW of operational capacity, with plans to scale to over 300 MW and reach Riot's growth target of 100 EH/s.
American Bitcoin mining giant Riot has recently announced that it has acquired Block Mining, a Kentucky-based vertically integrated Bitcoin miner, for $92.5 million. This acquisition was funded with $18.5 million in cash from Riot's balance sheet and $74 million worth of Riot common stock.
Riot Announces the Acquisition of Block Mining – Expands Riot’s Total Potential Power Capacity To 2 Gigawatts.
— Riot Platforms, Inc. (@RiotPlatforms) July 23, 2024
- 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…
This acquisition of Block Mining immediately boosts Riot's hash rate, expands its geographical footprint, and opens up exposure to energy markets beyond ERCOT.
By the end of 2024, Riot aims to increase self-mining capacity to 110 MW across these sites. Additionally, Block Mining has a greenfield expansion opportunity in Kentucky adjacent to an existing substation, with plans to develop 60 MW initially, potentially expanding to 150 MW.
“With a combined 60 MW of existing developed capacity, and a pipeline to rapidly scale to over 300 MW, this acquisition expands our operations and further enhances our path towards our growth target of 100 EH/s. The acquisition of Block Mining also diversifies Riot geographically into new power markets and brings onboard a proven operating team,” said Jason Les, CEO of Riot.
"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 operates two operational sites in Kentucky, totaling 60 MW of capacity, with plans to expand up to 155 MW. Currently, 23 MW is used for self-mining, 19 MW is available for immediate deployment by miners, and 18 MW is contracted to Bitcoin mining tenants. Riot, the parent company, expects to regain control of 8 MW from these contracts within 60-90 days for self-mining.
The Kentucky-based mining firm is also recognized for efficiently developing and operating Bitcoin mining facilities. Their experienced management team will continue managing current assets and driving expansion. Leveraging local relationships, Riot’s financial strength, and a long-term fixed price hash rate agreement with MicroBT, Block Mining aims to execute its vertically integrated strategy effectively.
Edited by Harshajit Sarmah
