Colorado-based Bitcoin mining company Riot Platforms has acquired its Kentucky-based rival Block Mining for $92.5 million to increase its operational capacity by 16 EH/s. The deal, announced in a Jul. 24 press release, includes an $18.5 million cash payment and $74 million in Riot common stock.
This acquisition immediately adds 1 EH/s to Riot’s self-mining hashrate, with potential growth to 16 EH/s by the end of 2025. Riot CEO Jason Les highlighted that the combined operations have a 60 MW capacity, which can rapidly scale to over 300 MW, aiding Riot’s growth target of 100 EH/s.
Riot plans to invest an additional $32.5 million through 2025 to enhance Block Mining’s power capacity, aiming for 110 MW for self-mining operations by the end of 2024. Despite the strategic move, Riot shares fell by 5.3% to $11.59.
The acquisition follows Riot Platform’s withdrawal of a $950 million bid for Bitfarms due to governance issues. This move underscores Riot’s commitment to expanding its mining capabilities and achieving long-term growth in the competitive Bitcoin mining industry.
