Riot Blockchain Buys Americas Largest Bitcoin Mining Facility for $651M

US-listed Riot Blockchain (Nasdaq: RIOT) is acquiring Whinstone US, Inc, a Texas-located data center operated by Northern Data AG, for a total of around $651 million, the Bitcoin mining company announced on Thursday.

Riot detailed that it will pay $80 million in cash for the deal along with a fixed 11.8 million common stocks of the company. The two companies have already signed the definitive terms for the acquisition deal.

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North America’s Largest Bitcoin Mining Facility

Whinstone is the largest known Bitcoin mining facility in North America. It has a total power capacity of 750 MW, but only 300 MW have been developed currently. Based in Rockdale, Texas, the facility spans across a 100-acre site and is hosting Bitcoin mining equipment in three buildings with a total area of 190,000 square feet. It is building another 60,000 square foot building.

The facility currently hosts Bitcoin mining operations for three institutional clients.

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“The acquisition of Whinstone is the most significant achievement in Riot’s growth to-date and positions Riot as an industry leader in Bitcoin mining,” Riot Blockchain CEO, Jason Les said in a statement.

“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.”

He further detailed that the new facility will serve as the foundation of Riot’s Bitcoin mining operations as the company is aiming to increase its footprint in the country.

Germany’s Northern Data AG, which is reportedly approaching for a public listing, acquired Whinstone in 2019. The company will own 12 percent of Riot’s common stocks after the closure of the deal.

Meanwhile, Riot Blockchain is recently closed a deal with Chinese Bitcoin miner manufacturer giant Bitmain to purchase 42,000 mining machines for a total value of around $138.5 million.

Source: https://www.financemagnates.com/cryptocurrency/news/riot-blockchain-buys-americas-largest-bitcoin-mining-facility-for-651m/