Riot Platforms, a leading American Bitcoin mining firm, has acquired Kentucky-based Block Mining for $92.5 million. The deal includes $18.5 million in cash and $74 million in Riot’s common stock, with up to an additional $32.5 million contingent on performance through 2025.
The acquisition immediately boosts Riot’s hashrate and provides access to new energy markets outside the Electric Reliability Council of Texas. Block Mining operates two Kentucky sites with a current capacity of 60 megawatts (MW), which Riot plans to expand to 110 MW by the end of 2024. The deal also includes a potential greenfield expansion opportunity in Kentucky that could add up to 150 MW.
Riot CEO Jason Les highlighted the acquisition’s strategic benefits for national diversification and scaling operations. Michael Stoltzner, co-founder and CEO of Block Mining, emphasized the opportunity for cost-effective expansion and access to new energy markets.
In June, Riot saw a 50% increase in deployed hashrate, mining 255 Bitcoin. The company completed hardware installations at its Corsicana facility and expanded capacity at its Rockdale facility, contributing to this growth.
Riot Platforms made headlines in mid-June with a $950 million offer to acquire rival mining firm Bitfarms. On July 24, Riot secured a significant victory when a Canadian tribunal invalidated Bitfarms’ “poison pill” defense, clearing a major hurdle in Riot’s acquisition bid.
Additionally, Riot’s subsidiary, Whinstone US, is involved in a legal battle with former joint venture partners over a U.S. Bitcoin mining facility. The dispute, which includes allegations of fraud, conspiracy, and securities violations, has escalated to a lawsuit seeking damages exceeding $1 million.
