- Riot Platforms operates two Bitcoin ($BTC) mining sites in Texas and has acquired two additional facilities from Kentucky company Block Mining.
- With this acquisition, Riot aims to achieve 100 exahashes per second (EH/s).
- Currently, Riot Platforms is the third largest $BTC mining company in the world, with a deployment rate of 22 EH/s, surpassing Marathon Digital Holdings’ 31.5 EH/s.
Riot Platforms is one of the global leaders in Bitcoin ($BTC) mining infrastructure. Acquired Block Mining in Kentucky for $92.5 millionThe deal includes $18.5 million in cash and $74 million in Riot stock. Block Mining can receive an additional $32.5 million in 2025 through additional power contracts.
Riot said: “The acquisition of Block Mining is an important milestone as we continue to expand our growth pipeline.” @JasonLes_Riot CEO. “This transaction allows us to diversify our business across the country and accelerate Block Mining’s expansion in Kentucky. With… https://t.co/vlt648TLDo pic.twitter.com/M2B2GyyyzL
— Riot Platforms, Inc. (@RiotPlatforms) July 23, 2024
Let’s explore the details of this deal.
Riot becomes the world’s third largest mining company
Riot Platforms operates two of the largest $BTC mining facilities in North America in Texas, with a total capacity of 1.1 gigawatts (GW).
The Rockdale facility has a hash rate of 14.7 EH/s and employs 250 people, while the Corsicana facility has a hash rate of 7.3 EH/s and employs 135 local people.
Riot Platforms hash rate surges 50% in June It surpasses CleanSpark and Core Scientific, both of which reported hash rates over 20 EH/s.
Currently, the company Ranked third among global $BTC miners It is right behind CleanSpark in terms of market capitalization, but far behind Marathon Digital Holdings.
Hash rate increase helps riot Mined 255 $BTC in JuneThis is an increase of nearly 20% from May. Down 44% year to date.
company Holding all $BTC mined in Junebringing its Total holdings To 9.3K $BTC, worth about $600 million at the current price of $64,287 per token.
Diversification and moving towards 100 EH/s
Block Mining operates two mining farms with a total power generation capacity of 60 megawatts (MW) and a maximum power generation capacity of 150 MW. Currently, Block Mining uses 23 MW for self-mining, leases 18 MW to mining tenants under hosting agreements, and the remaining 19 MW is idle.
of 18 MW allocated to hosting agreementRiot will be able to mine on its own using 8 MW within two to three months, and plans to increase the site capacity to 110 MW by the end of the year.
With this acquisition, Riot achieved several goals:
- Geographical Diversification Riot’s operations to reduce reliance on a single region
- Improving mining capacity An important step towards the 100 EH/s goal
- Entering new electricity markets Through Block Mining’s existing business, in particular the long-term fixed price agreement with MicroBT
- Team expansion With experienced management and operation staff from Block Mining.
The transaction immediately adds 1 EH/s to Riot’s current hashrate, with the potential to add 16 EH/s by the end of 2025, making Cumulative deployment rate reaches 38 EH/s.
CEO, Block Mining Michael Stolzner Highlights Riot Platforms Share The company’s vision for energy-efficient $BTC mining and team values.
Final Thoughts
In addition to the direct capacity gain, Block Mining Acquisition Strategic benefits for Riot. It solidifies Riot’s position in the $BTC mining space and brings it closer to its ambitious 100 EH/s goal.
Marathon Digital Holdings recently breached its contract $138 million fine This opens a window of opportunity for Riot to increase its market share and potentially become number one in the world. BTC mining company.
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Disclaimer: The opinions expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their own risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile, high-risk asset class.