Crypto Miner company Riot Blockchain, announced that it’s in the process of purchasing the biggest Bitcoin Hosting Facility in North America, Whinstone Inc.
According to a statement released Thursday, Riot Blockchain will acquire all of Texas-based Whinstone’s properties and operations for $80 million in cash plus a fixed 11.8 million shares of Riot common stock, resulting in $651 in stock and cash in total.
Riot Chief Executive Officer Jason Les says Whinstone will continue being the foundation of all Bitcoin mining operations.
This move is a game-changer for Riot. The deal means that the company is projected to be the largest publicly traded Bitcoin mining and hosting business in North America when it closes, based on total developed capacity.
“The acquisition of Whinstone is the most significant achievement in Riot’s growth to date, and positions Riot as an industry leader in Bitcoin mining,” said Jason Les, CEO of Riot.
He states that by closing this deal, the so-called Company will be well on its way to massive growth in the future. “After the consummation of this transaction, we will have created a very clear path for the Company’s future growth. Riot will wholly own the largest Bitcoin mining facility in North America, with very low power costs, and one of the most talented development teams in the industry. Whinstone will serve as the foundation of Riot’s Bitcoin mining operations, upon which we will drive our goal of increasing the American footprint in the global Bitcoin mining landscape.”
Whinstone’s facility has a 750 MW power capacity, with 300 MW currently under development, making it a valuable asset for energy-intensive Bitcoin mining. On Wednesday, the crypto-miner announced that it would pay $138.5 million to Bitmain Technologies for 42,000 S19j Antminers.
Whinstone currently operates Bitcoin mining operations for three institutional customers, who are estimated to use up to 300 MW of total power capacity by the end of 2021.
Whinstone earns revenue from engineering and construction facilities, as well as revenue from the fabrication and implementation of immersion cooling technology for Bitcoin mining, in addition to hosting revenue.
Upon completion of the deal, 12% of Riot’s common stock will belong to Northern Data AG, which bought Whinstone in 2020. The deal is expected to be closed by the end of June.