Crypto Mining Firm Riot To Acquire Whinstone For $651 Million

Riot Blockchain Inc has disclosed its plans of acquiring Bitcoin mining facility Whinstone Inc for about $651 million.

The $651 Million Whinstone Acquisition

The Whinstone acquisition includes both cash payments and stock options, Riot explained in a press release.

Riot would buy all of Whinstone’s assets and operations for $80 million in cash plus a fixed 11.8 million shares of Riot common stock.

The transaction is expected to be concluded in Q2 of 2021, subject to regulatory approvals and other customary closing conditions.

According to the Chief Executive Officer of Riot Blockchain, Jason Les, the company plans to make Whinstone the foundation of its Bitcoin mining operations upon which its global mining expansion goals would be.

“After the consummation of this transaction, we will have created a very clear path for the company’s future growth. Riot will wholly own the largest Bitcoin mining facility in North America, with very low power costs, and one of the most talented development teams in the industry.”

Whitestone’s co-founder Chad Harris also commented on the deal, expressing his excitement and optimism. He stated that Riot’s strategic vision and resources combined with Whinstone’s infrastructure strength would allow the combined teams to achieve shared growth plans.

Whinstone is based in Rockdale, Texas, and its facility is located on a 100-acre site, hosting Bitcoin mining customers in three buildings totaling 190,000 square feet. It has a power capacity of 750 MW, with 300 MW currently developed, an important asset for energy-intensive Bitcoin mining. 

Riot Forges Ahead With Growth And Expansion Plans

With this purchase, Riot predicts that it would become the largest publicly traded Bitcoin mining and hosting company in North America, measured by total developed capacity.

The company’s mining operations have grown in recent months, and this Whinstone purchase order marks a milestone in the continued expansion of Riot’s mining operations.

Riot recently announced a milestone purchase for $138.5 million worth of mining equipment. 42,000 S19j Antminers was purchased from Chinese mining company Bitmain Technologies Limited as part of a strategic move to increase its Bitcoin mining hash rate. When fully deployed, these miners will increase Riot’s computing power to an estimated 7.7 million tera hashes per second (TH/s), or about 4.6% of the network’s current total.

The company is also set to receive a minimum of 3,500 S19j Antminers monthly starting from November 2021 and will continue through October 2022, as per the terms of the purchase agreement.

Along with the price of Bitcoin, mining operations have been steadily on the rise. As more Bitcoin miners enter the space, the overall hash rate is expected to rise.