Riot Blockchain will buy out rival mining company Whinstone – Bits Media

American mining company Riot Blockchain, listed on the Nasdaq, announced the imminent acquisition of rival Whinstone. The deal is valued at $651 million.

According to the Riot Blockchain statement, the companies have already signed a final purchase agreement. Whinstone owners as payment will receive cash in the amount $80 million and 12% from the total number of Riot Blockchain shares. The transaction should be completed in the II quarter of this year - it is necessary to obtain the approval of the regulatory authorities and comply with other conditions.

WhinStone currently provides mining capacities for 300 MW. The management of Riot Blockchain declares, that power can be quickly and “without risks” increase to 450 MW. Besides, The absorption will allow Riot Blockchain to diversify income and create “significant financial and operational synergies”.

“After this absorption, we will lay a clear path of development of our company. Riot will be the only owner of the largest in North America for the production of bitcoins, which is characterized by low electricity costs. AND, certainly, We will have one of the most talented teams in the industry ", - said the general director of Riot Blockchain Jason Forest (Jason).

Previously reported, What Riot Blockchain ordered from the Chinese manufacturer Bitmain 42 000 ASIC miners S19j Antminer worth $138.5 million. This will double the company hashrate.