Riot Blockchain is set to acquire a Texas data facility for $650M
Bitcoin mining firm, Riot Blockchain is continuing its Bitcoin mining expansion efforts. Reports show that the United States-based miner is set to acquire Whinstone US Inc, currently owned by Northern Data.
The acquisition plan was announced by the company in a press release, with the U.S. Bitcoin miner paying $80 million in cash. The remainder will come from the sale of about 12% of its stock to Northern Data.
Whinstone US Inc is reportedly operating the single largest Bitcoin mining facility in the United States. Headquartered in Texas, Whinstone’s data center has a massive capacity of 750 megawatts, with an additional 300 MW expansion currently in the works.
Riot Blockchain is in the run towards the top to become the largest publicly traded Bitcoin mining enterprise in North America on the basis of operating capacity metrics.
For Riot Blockchain, the Whinstone acquisition would provide an opportunity to increase its mining capacity. According to Riot Blockchain CEO Jason Les, the path forward for the Bitcoin miner is one that involves increasing U.S. participation in the global BTC mining landscape.
In its announcement, Northern Data disclosed that the Whinstone sale to Riot Blockchain will not negatively impact its earnings before interest, taxes, depreciation and amortization (EBITDA).
The Whinstone acquisition deal worth of $650 million, comes on the heels of several inventory expansions by the U.S. Bitcoin miner.
Riot Blockchain has been pursuing a capacity expansion agenda in recent times, with its hashing power growing almost fivefold in 2020. The effort the company is putting in is indicating the larger push by Bitcoin miners based in North America to challenge China’s hash rate dominance.