US-based listed Bitcoin (BTC) mining company Riot Blockchain said it's buying Whinstone, the owner and operator of North Americas 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 Riots 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.
Whinstones 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.