By Mark R. Long
Bitcoin miner Riot Platforms said it bought Block Mining for $92.5 million in cash and stock, boosting its power capacity and exposure to additional energy markets.
The Castle Rock, Colo., company said Tuesday that the purchase boosts its hash rate – a measurement of cryptocurrency computing power – and adds 60 megawatts of electrical capacity, with the potential to expand to 110 MW this year. An additional consideration of up to $32.5 million could be earned by Block Mining through 2025 by the execution of power purchase agreements to boost capacity further, Riot said.
Block Mining operates two sites in Kentucky, where its team will remain in place to operate assets and drive expansion. The purchase will give Riot exposure to energy markets outside of Texas, where it has data-center-hosting and Bitcoin mining operations.
Shares of Riot Platforms (RIOT) closed down 5.3% at $11.59 on Tuesday. The stock is down 37% from a year ago.
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