In an ambitious strategic move, Riot Platforms Inc (NASDAQ:RIOT) announced the acquisition of Block Mining, a Kentucky-based Bitcoin (CRYPTO:BTC) miner with energy capacity.
This acquisition points to Riot’s mining prowess, as JPMorgan analyst Reginald L. Smith says: “The deal diversifies Riot’s power supply and increases capacity to more than 2 GW, the largest among corporations so far. indexed mining companies in the United States.
Riot is paying $92. 5 million to acquire Block Mining, split between $18. 5 million in cash and $74 million in stock. As Smith noted, “Riot paid $1. 5 million per MW on and about $1 million per MW contract. “
This investment unlocks significant energy resources, adding Block Mining’s two knowledge centers in Kentucky, which together can reach up to 305 MW until the end of 2025.
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This acquisition is much more than a simple question of power; It’s a leap in Riot’s hashrate ambitions. With 22 EH/s already online, Riot plans to increase its targets to 36. 3 EH/s until the end of 2024 and 56. 6 EH/s until the end of 2025.
“Riot aims to solidify its position as one of the 3 largest index miners in the United States in terms of hashrate and strength channel,” Smith noted, marking significant progress from previous targets of 31. 5 EH/s and 40. 8 EH/s.
Riot’s presence beyond Corsicana, Texas, signals a strategic shift, with Smith noting, “The announcement comes as a surprise, given Corsicana’s potential. “»
By securing more energy resources and its mining capabilities, Riot Platforms is poised to reshape the crypto mining landscape and assert its dominance in the market.
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