Riot Platforms Acquires Block Mining for $92.5M, Expands Hash Rate and Market Reach

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The leading American Bitcoin mining company – Riot Platforms – has acquired the Kentucky-based firm Block Mining in a transaction valued at $92.5 million.

The deal, announced on July 24, includes $18.5 million in cash from Riot’s reserves and $74 million in Riot common stock. Additionally, Block Mining could receive up to $32.5 million more, based on performance metrics through 2025., Riot said that it has instantly boosted its hash rate, broadened its geographical reach, and gained entry to additional energy markets outside the Electric Reliability Council of Texas region by acquiring Block Mining.

Block Mining operates two Kentucky sites with a combined 60 MW capacity, expandable to 155 MW. Currently, 23 MW is used for self-mining, 19 MW is vacant, and 18 MW is contracted. About 8 MW of the contracted power will be available for Riot’s use in 60-90 days. Riot plans to expand the sites to 110 MW by the end of 2024 and has a greenfield expansion opportunity in Kentucky for up to 150 MW.

Meanwhile, Block Mining’s team will continue managing the current Kentucky operations and spearhead expansion efforts, utilizing their local connections, Riot’s financial resources, and the long-term fixed-price hash rate agreement with MicroBT.As reported earlier, Bitfarms has been opposing Riot’s $950 million buyout bid since June 13, arguing it undervalues the company.

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