Riot Platforms, a leading American Bitcoin mining company, has acquired Block Mining, a Kentucky-based mining operation, in a transaction valued at $92.5 million. The deal consists of $18.5 million in cash and $74 million in Riot common stock, with the potential for an additional $32.5 million based on performance metrics through 2025.

This strategic acquisition instantly boosts Riot's hash rate, expands its geographical reach, and gains entry to additional energy markets outside the Electric Reliability Council of Texas (ERCOT) region. Block Mining's CEO, Michael Stoltzner, expressed excitement about the shared vision for an energy-efficient Bitcoin miner and the complementary culture that values teamwork, creativity, and excellence.

Block Mining operates two Kentucky sites with a combined 60 MW capacity, expandable to 155 MW. Riot plans to expand the sites to 110 MW by the end of 2024 and has a greenfield expansion opportunity in Kentucky for up to 150 MW. The acquisition allows Riot to leverage Block Mining's local connections, financial resources, and long-term fixed-price hash rate agreement with MicroBT.

The acquisition of Block Mining follows Riot's attempt to acquire rival Bitcoin miner Bitfarms, which has been opposing Riot's $950 million buyout bid since June 13. However, Riot scored a win on July 24 as a Canadian tribunal ended Bitfarms' "rights plan" strategy, removing a significant barrier to Riot's takeover attempt.

This move solidifies Riot's position in the Bitcoin mining industry, expanding its capabilities and reach. The acquisition demonstrates Riot's commitment to building Bitcoin-first data centers and leveraging collective strengths and expertise to drive growth and innovation.