Riot Blockchain Buys Rival Whinstone For $ 651 Million

Riot Blockchain Buys Rival Whinstone For $ 651 Million


US-based Bitcoin mining company Riot Blockchain, which is listed on the Nasdaq Stock Exchange, is poised to buy rival Whinstone for $ 651 million. Riot Blockchain announced today that it has signed a purchase agreement with Bitcoin mining hosting facility Whinstone.

According to the statement, Riot Blockchain will make payments in the form of cash and shares. Under the agreement, Riot, which will pay $ 80 million in cash to Whinstone's owner, Northern data, will cover the rest of the payment with shares. The acquisition is expected to be completed in the second quarter of 2021, following the completion of the legal process.

Riot Chief Executive Jason Les said::

"After the completion of this transaction, we will have established a very clear path for the future growth of the company. Riot will have the largest Bitcoin mining facility in North America with very low energy costs and one of the most talented development teams in the industry.”

The Riot Blockchain statement also stated that the acquisition would diversify its revenues and create financial and operational synergies. Riot, who stated that Whinstone currently has a capacity of 300 MW (megawatts),noted that Whinstone can quickly increase to 450 MW with a clean and risk-free road map.

Aiming to become a leader in Bitcoin mining and hosting, Riot Blokchain announced yesterday that it has ordered 42 thousand Bitcoin mining hardware worth $ 138.5 million, which is expected to be shipped by October 2022. With these mining equipment operational, Riot's computing power is expected to rise to 7.7 million terahash (TH/s) per second.

What Is Bitcoin Mining?

Bitcoin mining is the act of verifying transactions that occur in the Bitcoin blockchain. Bitcoin miners validate transactions and then publicly share the transaction on a peer-to-peer (P2P Network) network for everyone to see. Bitcoin miners are the people responsible for verifying and valuing transactions before the block is added to create a blockchain when a miner places the next block on the blockchain, they usually receive a reward in the form of Bitcoin.

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