Bitcoin Mining Company Acquires Competitor to Boost Operational Capacity
Colorado-based Bitcoin mining company Riot Platforms has purchased Kentucky-based competitor Block Mining for $92.5 million, with plans to expand operational capacity by 16 EH/s. This acquisition immediately adds 1 EH/s to Riot’s self-mining hashrate, with a projected total of 16 EH/s by the end of 2025.
Riot Platforms’ Expansion Plans and Investment Strategy
Riot Platforms intends to invest an additional $32.5 million through 2025 to enhance Block Mining’s power capacity. This investment will support two operational sites in Kentucky, with the goal of reaching 110 MW for self-mining operations by the end of 2024. Despite the acquisition news, Riot’s shares experienced a 5.3% decline to $11.59, as reported by Google Finance.
Riot Platforms’ Previous Acquisition Proposal and Strategic Decisions
Prior to acquiring Block Mining, Riot Platforms had proposed acquiring rival company Bitfarms for $950 million. However, the proposal was later withdrawn due to challenges in engaging with Bitfarms’ current board for a potential merger. Following the withdrawal, Riot requested a special shareholder meeting to address governance issues at the Toronto-based competitor.
