Riot Blockchain continues its Bitcoin (BTC) mining expansion efforts. Reports suggest the US-based miner is preparing to buy Whinstone US Inc, currently owned by Northern Data.
The planned purchase was announced in a press release from Riot Blockchain on Thursday, with the U.S. Bitcoin miner paying $ 80 million in cash. The remainder will come from the sale of approximately 12% of its inventory to Northern DAG.
Whinstone would operate the largest Bitcoin mining facility in the United States. Based in Texas, the Whinstone data center is said to have a total capacity of 750 megawatts with a further expansion of 300 MW currently underway.
Indeed, upon completion of the transaction, Riot Blockchain is expected to become the largest publicly traded Bitcoin mining company in North America based on operating capacity metrics.
For Riot Blockchain, the acquisition of Whinstone offers the company the opportunity to increase its Bitcoin mining capacity. According to Jason Les, CEO of Riot, the way forward for the Bitcoin miner is to increase US participation in the global BTC mining landscape.
In its own announcement of the deal, Northern Data revealed that the sale of Whinstone to Riot Blockchain will not negatively impact its earnings before interest, taxes, depreciation and amortization. According to the Northern DAG press release, the company’s profitable multi-site strategy means all previous EBITDA guidance for fiscal 2021 remains unchanged.
Planned $ 650 Whinstone Acquisition Following Numerous Inventories expansions by the US miner Bitcoin. Indeed, TBEN recently reported that Riot Blockchain purchased 42,000 Antminer platforms from Bitmain for around $ 138 million.
Riot Blockchain has continued a program of expanding its capacity lately, with hashing power almost six-fold in 2020. The company’s efforts are indicative of the biggest push by North America-based Bitcoin miners to challenge the dominance of the BTC hash rate in China.