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Riot Blockchain Acquires Whinstone’s Texas Bitcoin Mining Operations
The firm is acquiring the facility with the goal of “increasing the American footprint in the global bitcoin mining landscape.”
Nasdaq-listed mining company Riot Blockchain (NASDAQ: RIOT) is acquiring Whinstone US, Inc. data center operations in Texas from Northern Data AG.
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Riot Blockchain said Thursday it has signed an agreement to acquire the firm's Texas operations for $80 million cash and 11.8 million shares of Riot stock at a total value of $651 million, with the goal of “increasing the American footprint in the global bitcoin mining landscape.”
Acquired in 2019 by Germany’s Northern Data AG, a developer and operator of high-performance computing (“HPC”) infrastructure solutions, Whinstone US operates a high-performance bitcoin mining facility based in Rockdale, Texas, with a 300-megawatt capacity, which can be rapidly expanded by an additional 450 MW, according to Riot Blockchain.
“Riot will wholly own the largest bitcoin mining facility in North America, with very low power costs, and one of the most talented development teams in the industry, ” said Jason Les, CEO of Riot Blockchain.
Bitcoin mining synergies
Once the deal closes, Northern Data will own 12% of the total outstanding common stock of Riot Blockchain.
“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.
“Simultaneously, Northern Data will be able to use the cash proceeds from the transaction to focus on, and further implement, its decentralized, multi-site, scalable and [environmental, social and corporate governance]-focused strategy.”
Read more: Riot Blockchain Signs Contract to Purchase 42,000 Mining Machines From Bitmain
On Wednesday, Riot announced it had inked an agreement to purchase 42,000 mining machines from Bitmain Technologies, increasing the firm’s bitcoin mining hashrate by 93%.
At the time of publication Riot Blockchain shares were trading up 3.62% at $50.12 on Thursday.
Tanzeel Akhtar
Tanzeel Akhtar has contributed to The Wall Street Journal, BBC, Bloomberg, CNBC, Forbes Africa, Financial Times, The Street, Citywire, Investing.com, Euromoney, Yahoo! Finance, Benzinga, Kitco News, African Business Magazine, Hedge Week, Campden Family Office, Modern Investor, Spear's Wealth Management Magazine, Global Investor, ETF.com, ETF Stream, CIO UK, Funds Global Asia, Portfolio Institutional, Interactive Investor, Bitcoin Magazine, CryptoNews.com, Bitcoin.com, The Local, The Next Web, Mining Journal, Money Marketing, Marketing Week and more. Tanzeel trained as a foreign correspondent at the University of Helsinki, Finland and newspaper journalist at the University of Central Lancashire, UK. She holds a BA (Honours) in English Literature from the Manchester Metropolitan University, UK and completed a semester abroad as an ERASMUS student at the National and Kapodistrian University of Athens, Greece. She is NCTJ Qualified - Media Law, Public Administration and passed the Shorthand 100WPM with distinction. She does not currently hold value in any digital currencies or projects.
