A press release states that major U.S.-based Bitcoin mining company Riot is pulling off a $651 million deal to acquire Whinstone—the single biggest BTC hosting facility in North America.
This will allow Riot to turn into a leading global crypto miner.
Purchasing Whinstone is transformative for Riot
According to the press release, Riot Blockchain has signed all of the necessary documentation to buy Whinstone, along with all of its assets, for a total amount of approximately $651 million in Riot shares, including $80 million in cash.
The price of Riot shares upon the recent closing was $48.37.
Purchasing Whinstone is expected to be a pivot point for Riot and the company's shareholders since buying this firm will enable Riot to turn into the biggest public BTC mining and hosting entity in North America.
Here's why Riot is after Whinstone
Whinstone is located in Texas. The company's industry-leading team is expected to accelerate Riot's expansion in the Bitcoin mining business. The Whinstone team consists of about a hundred employees who have created a full-scale leading company in just a year.
The total power capacity of Whinstone is 750 MW, and 300 MW is being developed at the moment.
Whinstone is the single biggest facility in North America for BTC mining. At the moment, the company has three financial institutions as customers. It also earns part of its revenue by fabricating and deploying immersion cooling technology for cryptocurrency mining.
In 2020, Whinstone was acquired by Northern Data AG and, after the deal with Riot, it will own around 12 percent of Riot's stock.