Riot Blockchain inks definitive agreement for acquiring Whinstone US

Riot Blockchain inks definitive agreement for acquiring Whinstone US

Riot Blockchain, Inc., has reportedly announced that it has inked a definitive agreement for the acquisition of Whinstone US, Inc.

The deal involves the takeover of all of Whinstone’s operations and assets for a cash consideration of $80 million and a fixed 11.8 million shares of Riot common stock. These shares have an implied overall transaction value of nearly $651 million based on Riot’s last closing price of $48.37.

According to Jason Les, the CEO of Riot, Whinstone’s acquisition is the most important achievement in Riot’s growth till date and places the company as a market leader in Bitcoin mining. After the consummation of this deal, Riot will have created a very clear path for its future growth.

Les further stated that, following the acquisition, Riot will wholly own the largest Bitcoin mining unit in North America, with very low power costs, and one of the most talented development teams in the industry. In addition, Whinstone will act as the foundation of the company’s Bitcoin mining operations.

Upon this foundation, Riot will be driving its objective of enhancing the American footprint in the global Bitcoin mining landscape, added Les.

As per reliable reports, Whinstone’s site has 750 MW of overall power capacity, with 300 MW that is presently developed. In terms of developed capacity, the unit is believed to be the largest single facility for Bitcoin mining in North America.

In pursuing the achievement of the most systematized power strategy, Whinstone integrates income from ancillary power services revenue, real-time spot power procurement, and fixed low-cost power agreements.

Bitcoin miners are benefitted from low-cost energy for the maximization of production margins. This involves benefit from an electricity supply with the flexibility of rapidly responding to demand and supply events in the power market.

As per sources, the takeover of Whinstone is a transformational event for Riot and its stakeholders. Riot looks upon Whinstone as a foundational feature in its strategy for becoming a market-leading Bitcoin mining platform at the global level.

Source credit: https://www.globenewswire.com/news-release/2021/04/08/2206616/0/en/Riot-to-Acquire-Whinstone-Creating-a-US-Based-Industry-Leader-in-Bitcoin-Mining.html