Riot Blockchain (NASDAQ: RIOT) has confirmed that it would buy the United States’ biggest BTC block reward mining facility. It is anticipated to become the world’s biggest publicly traded blockchain mining operation.
Riot announced in a press release that it has reached a binding deal to buy Whinstone U.S Inc. from its competitor Northern Data AG. It will invest $80 million in cash and $571 million in its common shares, equaling a gross purchase value of $651 million.
“The acquisition of Whinstone is the most significant achievement in Riot’s growth to date and positions Riot as an industry leader in [BTC] mining. Whinstone will serve as the foundation of Riot’s [BTC] mining operations, upon which we will drive our goal of increasing the American footprint in the global [BTC] mining landscape,” said Riot CEO Jason Les.
As per the news article, Whinstone operates the largest block incentive mining hosting facility in the U.S. It has a 750 MW gross power capacity at a 100-acre block incentive mining site in Rockdale, Texas. In addition, the company is constructing an additional 300 MW of power. It has a long-term power supply agreement with local power producers at its place.
Northern Data AG will now own 12% of the gross outstanding Riot common stock as a result of the deal. The $80 million in cash from the deal would be used to increase the company’s existing activities.
“By becoming a minority shareholder in Riot going forward, through its equity stake in Riot, Northern Data will be able to benefit from the synergies generated by the transaction and continues to directly participate in the growth of Bitcoin value potential.” said Aroosh Thillainathan, CEO of Northern Data.
Northern Bitcoin AG combined with Whinstone in 2019 to form Northern Data AG, with Aroosh taking the helm as CEO. Since then, it has attempted to diversify its business beyond Bitcoin block reward mining to include artificial intelligence, the Internet of Things, and other new technologies.
Riot, on the other hand, has had legal issues in the past due to its rebranding as a blockchain venture. Investors sued the firm for its digital currency pivot a few years ago, alleging that the change was made only to exploit the company’s stock. Bioptix was the previous name of the company, which specialized in biotechnology.