Summary by Moomoo AI
Riot Platforms has acquired Block Mining, a Kentucky-based Bitcoin miner, for $92.5 million, consisting of $18.5 million in cash and $74 million in Riot common stock. The acquisition immediately adds 60MW of operational capacity with potential to expand to 110MW in 2024, and a pipeline to build over 300MW in Kentucky. The deal includes two operational sites and adds 1 EH/s to Riot's existing self-mining hash rate.The transaction includes potential earn-out payments up to $32.5 million through 2025, subject to executing additional power purchase agreements. Block Mining's sites are serviced by various power companies including Tennessee Valley Authority and operate in the MISO region, offering four demand response programs. The existing management team will remain to operate Kentucky assets and drive expansion.The acquisition marks Riot's strategic expansion beyond Texas, diversifying its operations nationally. Block Mining's 60MW capacity includes 23MW for self-mining, 19MW vacant for immediate deployment, and 18MW under hosting agreements, with 8MW becoming available for self-mining in 60-90 days. The company targets expanding Block Mining's sites to 110MW for self-mining by end-2024.
