New Bitcoin Mining Giant Emerging in US With USD 651M Deal 101
Source: Adobe/Konstantin Yolshin

US-based listed Bitcoin (BTC) mining company Riot Blockchain said it’s buying Whinstone, the owner and operator of North America’s leading Bitcoin hosting facility, from Northern Data for USD 651m.

The company said it has already signed a definitive agreement and expects to close the transaction in the second quarter of 2021. According to the agreement, USD 80m payable in cash and remainder in shares of Riot common stock. Upon closing of the transaction, Northern Data, which acquired Whinstone in 2020, will own approximately 12% of the total outstanding common stock of Riot, the company said.

Riot claims that upon the closing of this acquisition, the company is expected to be the largest publicly traded Bitcoin mining and hosting company in North America, as measured by total developed capacity.

“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,” Jason Les, CEO of Riot, was quoted as saying in the announcement.

Whinstone’s site has a total power capacity of 750 MW, with 300 MW currently developed, per Riot. Whinstone hosts Bitcoin mining operations for three institutional clients who, by the end of 2021, are expected to utilize up to 300 MW of aggregate power capacity.

Read Also:   Nvidia Looks to Fire Up Its Crypto Mining GPU Production; If Demand is Good Enough

Also, Whinstone generates engineering and construction services revenue from hosting clients on site, including revenue derived from the fabrication and deployment of immersion cooling technology for Bitcoin mining.

The Whinstone team is comprised of approximately 100 employees who have built Whinstone’s Texas operations from greenfield to commercialization in less than twelve months, per Riot.

“By becoming a minority shareholder in Riot going forward, through its equity stake in Riot, Northern Data will be able to benefit from the synergies generated by the transaction and continues to directly participate in the growth of Bitcoin value potential. Simultaneously, Northern Data will be able to use the cash proceeds from the transaction to focus on, and further implement, its decentralized, multi-site, scalable and ESG [environmental, social, and governance]-focused strategy,” said Aroosh Thillainathan, CEO of Northern Data.
____
Learn more:
– Bitcoin Mining in 2021: Growth, Consolidation, Renewables, and Regulation
– Proof-of-Disagreement: Bitcoin’s Work vs. Ethereum’s Planned Staking
– This Is How Satoshi Nakamoto Defended Bitcoin Mining & Converted A Skeptic
– This Is How Institutional Players Help Bitcoin Mining Industry Grow
– Bitcoin Miners Are Using New Strategies to Hedge Risks

Read Also:   Thailand's KBank to Explore Decentralized Finance (DeFi) to Expand Its Digital Reach


Download MAXBIT Android App, Your best source of all crypto news!
Google Play

Source link


New Bitcoin Mining Giant Emerging in US With USD 651M Deal

by Benjamin Hartman
Choose A Format
Poll
Voting to make decisions or determine opinions
Story
Formatted Text with Embeds and Visuals
List
The Classic Internet Listicles
Meme
Upload your own images to make custom memes
Video
Youtube, Vimeo or Vine Embeds
Audio
Soundcloud or Mixcloud Embeds
Image
Photo or GIF
Gif
GIF format