Riot Platforms, Inc. has acquired Block Mining, Inc. for $92.5 million, a move analysts from H.C. Wainwright deem beneficial for boosting Riot’s hash rate. The deal, finalized with $18.5 million in cash and $74 million in common stock, includes an additional earn-out of up to $32.5 million based on future milestones.
This acquisition, involving 60 MW of existing capacity, propels Riot towards its goal of 100 EH/s. Block Mining’s Kentucky data centers add 1 EH/s to Riot’s portfolio, with plans to expand to 305 MW by the end of 2025, potentially raising Riot’s hash rate to 56.6 EH/s.
Historically, this marks a diversification from Riot’s Texas-based operations, enhancing operational efficiency and reducing geographic risk. Despite a $345 million expenditure for site development, Riot’s liquidity, with $639 million in cash and Bitcoin holdings, supports this growth. Analysts have increased Riot’s 2024 revenue estimate to $344.2 million, reflecting confidence in the company’s strategic expansion.
