Summary
- Riot Platforms buys Block Mining to boost its mining capacity.
- The deal aims to bring 60 megawatts of capacity on board.
Bitcoin miner Riot Platforms has just bought Block Mining, a Kentucky-based Bitcoin miner. The deal was sealed for $92.5 million and the main target is to expand mining operations.
In an official statement released today, Riot stated that the deal could bring on board 60 megawatts of current operational capacity.
According to the company, Riot aims to expand Block Mining’s two sites, targeting 110 MW for self-mining operations by the end of this year.
The move would bring Riot’s total potential power capacity to 2 gigawatts.
Jason Lee, Riot’s CEO said in a recent statement that the transaction allows the firm to diversify their operations nationally and accelerate Block Mining’s expansion in Kentucky.
He continued and said that with a combined 60 MW of existing developed capacity, and a pipeline to scale to more than 300 MW, the new deal allows the firm to expand its operations and consolidates its path towards the growth target of 100 EH/s.
Riot paid the purchase deal with $18.5 million in cash and $74 million worth of Riot common stock, the official statement released today noted.
Riot Earned 255 BTC in June
Earlier this month, Riot said in a filing that it earned 255 BTC last month, compared to 215 BTC in May and 460 BTC in June 2023.
It’s also worth noting the fact that the firm mined about half as much BTC YoY in June, as expected following the Bitcoin halving event which took place on April 20, 2024.
The official notes revealed that Riot anticipates a total self-mining hash rate capacity of 31 EH/s by the end of 2024. Riot entered into a long-term master purchase agreement with MicroBT, which included an initial order of 33,280 immersion miners for the Corsicana Facility.
Bitcoin miners have been making strong efforts to boost their revenues post the 2024 BTC halving event, and as we recently disclosed, citing Bernstein, 20% of BTC miners’ capacity is expected to shift to AI by 2027 in this regard.