518 Interactions, 2 today
Riot said in a press release that it has reached a binding deal to buy Whinstone US Inc. from Northern Data AG. It will pay $80 million in cash and $571 million in shares, with a combined purchase value of $651 million.
— Riot Blockchain (@RiotBlockchain) April 8, 2021
Riot CEO Jason Les remarked, “The acquisition of Whinstone is the most significant achievement in Riot’s growth to-date and positions Riot as an industry leader in [BTC] mining. Whinstone will serve as the foundation of Riot’s [BTC] mining operations, upon which we will drive our goal of increasing the American footprint in the global [BTC] mining landscape.”
Whinstone, according to the press release, owns the largest block incentive mining hosting facility in the United States. It runs a 100-acre block incentive mining site with a combined power capacity of 750 MW in Rockdale, Texas. In addition, the company is constructing an additional 300 MW of electricity. Its location has a long-term electricity supply agreement with a local power provider.
Northern Data AG now owns 12% of the gross outstanding Riot common stock as a result of the transaction. The $80 million in proceeds from the sale will be used to expand the company’s current operations.
Aroosh Thillainathan, the Northern Data CEO commented, “By becoming a minority shareholder in Riot going forward, 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.”
Northern Bitcoin AG merged with Whinstone in 2019 to become Northern Data AG, with Aroosh becoming the CEO of the joint company. Since then, it has sought to diversify from BTC block reward mining to artificial intelligence, IoT and other emerging technologies.
Riot, for its part, has previously faced legal issues as a result of its rebranding as a blockchain venture. Investors sued the firm a couple years ago for its digital currency pivot, alleging that it was done only to exploit its securities. Previously known as Bioptix, the firm specialised in biotechnology.