American mining company Riot Blockchain, listed on the Nasdaq exchange, announced the imminent takeover of rival Whinstone. The deal is valued at $ 651 million.
According to a statement from Riot Blockchain, the companies have already signed a definitive purchase agreement. Whinstone owners will receive $ 80 million in cash as payment and 12% of the total Riot Blockchain shares. The deal is due to close in the second quarter of this year – regulatory approvals and other conditions must be met.
Whinstone currently operates a 300 MW mining facility. The Riot Blockchain management claims that the capacity can be increased quickly enough and “without risks” to 450 MW. In addition, the takeover will enable Riot Blockchain to diversify its revenues and create “significant financial and operational synergies.”
“After this takeover, we will pave a clear path for the development of our company. Riot will be the sole owner of North America’s largest low-cost bitcoin mining venture. And of course we will have one of the most talented teams in the industry, ”said Riot Blockchain CEO Jason Les.
Earlier it was reported that Riot Blockchain ordered 42,000 S19j Antminer ASIC miners from the Chinese manufacturer Bitmain for $ 138.5 million. This will double the company’s hash rate.
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