Riot acquires Whinstone to become the largest blockchain mining firm

Riot acquires Whinstone to become the largest blockchain mining firm

U.S.-based Riot Blockchain has reportedly announced the purchase of the largest BTC block reward mining in the U.S. to become the largest publicly- traded blockchain mining firm across the globe. In an official press release, Riot mentioned that it has inked a definitive agreement to purchase Whinstone U.S. Inc. from its competitor- Northern Data AG.

The company is likely to pay a sum of USD 80 million in cash and USD 571 million in its common stock, equivalent to a total transactional value of USD 651 million.

Jason Les, CEO at Riot, was reportedly quoted stating that the transaction has driven Riot to become an industry leader in BTC mining. Additionally, Whinstone will serve as the foundation of Riot’s mining operations, based on which the company will aim at increasing its American footprint in the global BTC mining landscape.

As per reliable sources, Texas-based Whinstone holds ownership for the biggest block reward mining hosting facility across the U.S. It operates a 100-block reward site in Texas which carries a total power capacity of 750 MW. Moreover, the firm is developing an added 300 MW of power with its site having a long-term power contract with local providers.

Notably, through the sale, Northern Data AG will own 12% of total Riot common stock. The company will direct the USD 80 million cash proceeds from the sale into broadening its current operations.

According to Aroosh Thillainathan, CEO, Northern Data, by becoming a minority stakeholder in Riot through its equity stake in the company, Northern Data will be able to gain from synergies generated through the transaction and will participate in the growth of Bitcoin value potential.  

For the record, Northern Bitcoin AG joined Whinstone in the year 2019 to form Northern Data AG. Since then, the company has aimed at diversifying from BTC block reward mining to IoT, artificial intelligence, and other upcoming technologies.

Source Credit: https://coingeek.com/riot-blockchain-buys-texas-data-center-for-650m-from-rival-northern-data/