Riot Platforms has acquired Block Mining for $92.5 million, boosting its production capacity and market presence in the Bitcoin mining industry. This acquisition adds 60 MW of operational capacity, with plans to expand to 110 MW by the end of 2024.
Riot’s total potential power capacity now increases to 2 GW. CEO Jason Les emphasized that this acquisition is part of a strategic diversification plan to achieve a hash rate of 16 EH/s by the end of 2025.
The deal was mainly financed through common shares valued at $74 million, with the rest paid in cash. Despite this significant move, Riot’s stock saw only a modest rise of 0.6% in pre-market trading.
This acquisition follows Riot’s failed attempt to acquire Bitfarms and signals a trend towards consolidation in the Bitcoin mining sector. This strategic move positions Riot as a formidable player, likely driving further competition and innovation in the industry.
