Riot Platforms Expands With Acquisition Of Kentucky Bitcoin Mining By Investing.com
CASTLE ROCK, Colo. – Riot Platforms, Inc. (NASDAQ: NASDAQ: ), a major mining player, has officially acquired Kentucky-based Block Mining, Inc., in a strategic move to increase operational capacity and improve its hash rate. The deal, valued at $92.5 million, was settled for $18.5 million in cash and $74 million in Riot common stock. Additional payments of up to $32.5 million could follow based on future capacity increases through 2025.
Block Mining operates two sites in Kentucky, with a combined capacity of 60 MW, with expansion capacity of up to 110 MW. The acquisition not only increases Riot's hash rate by 1 EH/s but also positions the company for a potential increase of 16 EH/s by the end of 2025. Block Mining's current and planned facilities could contribute more than 300 MW to Riot's portfolio, subject to execution of power purchase agreements (PPAs).
The project brings new energy markets to the fore beyond ERCOT, a working partnership with the Tennessee Valley Authority and Big Rivers Electric Corporation in the MISO power region. Riot CEO Jason Les emphasized the importance of the acquisition in diversifying Riot's operations and accelerating growth in Kentucky. Block Mining's management team, acclaimed for its experience and efficiency, will continue to drive expansion.
The purchase was advised by Stifel for Riot and XMS Capital Partners for Block Mining, with legal advisors provided by Greenberg Traurig, LLP, and Winston & Strawn LLP, respectively. This expansion is in line with Riot's vision to lead in Bitcoin-powered infrastructure and follows the company's strategy of integrated vertical operations, which now covers all locations in Texas, Kentucky, and Colorado.
This article is based on a press release.
In other recent news, Riot Platforms, a major player in Bitcoin mining, surpassed its second quarter goal by reaching a hash rate of 22.0 exahashes per second. This increase was due to the addition of 7.3 EH/s at Riot's Corsicana Facility and the use of additional capacity at its Rockdale facility. The company is also in the midst of a strategic review following a dispute with its largest shareholder, Bitfarms, over a rejected $950 million takeover offer.
At the same time, Bitfarms announced the appointment of Ben Gagnon as the new CEO, a move that comes amid ongoing tensions with Riot Platforms. Gagnon, previously the company's Chief Mining Officer, brings extensive industry experience to his new role.
In the political sphere, the upcoming US presidential election has led to speculation about the possible effects of either candidate's policies on various industries. Analysts at UBS and JPMorgan provided insights into how sectors such as banking, clean energy, and cryptocurrency could be affected under the potential administrations of current President Joe Biden and former President Donald Trump.
In addition, stocks linked to Trump's presidency, including Trump Media & Technology Group and various cryptocurrency-related stocks, have seen big gains. This increase is reported to be related to the increase in investors betting on Trump's victory in the upcoming election.
These are the latest developments in the financial and political spheres, giving investors a clear view of the current situation.
InvestingPro Insights
Following Riot Platforms, Inc.'s (NASDAQ: RIOT) acquisition of Block Mining, Inc., the company's financial metrics and market performance provide a broader context for investors evaluating the impact of this important move. According to InvestingPro data, Riot has a market capitalization of $3.34 billion, reflecting the scale of its operations within the Bitcoin mining industry. The company's Price-to-Earnings (P/E) ratio stands at 15.99, which indicates how much investors are willing to pay for each dollar of earnings, which is a key valuation metric.
On the operating front, Riot has shown a strong revenue growth of 13.51% in the last twelve months from Q1 2024, indicating an increase in growth in its business activities. This is coupled with a strong gross margin of 16.89%, underscoring the company's ability to manage its cost of goods sold effectively.
InvestingPro Tips highlights that Riot not only has more cash than debt on its balance sheet but also expects net income and sales growth this year. These factors are important for investors considering the company's financial health and growth prospects after the acquisition. Additionally, although the movement of Riot's stock price has been volatile, analysts predict that the company will be profitable this year, which would be a good sign for potential investors.
For readers interested in more in-depth analysis, there are additional InvestingPro tips available, which include information on Riot's cash burn rate, valuation multiples, and cash flow. For example, while Riot trades at a low P/E ratio relative to near-term earnings growth, it also suffers from weak gross profit margins and a poor free cash flow yield. To access these details, visit and use the coupon code PRONEWS24 for up to 10% off annual Pro and annual or bi-annual Pro+ subscriptions. In total, there are 15 additional InvestingPro Tips available for Riot Platforms, Inc., which provide a comprehensive view of the company's financial performance and market outlook.
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