Riot Blockchain acquired Whinstone for a total of $ 651 million. By 2022, Riot Blockchain expects to have a mining capacity of 7.7 EH / s.

Nasdaq-listed mining company Riot Blockchain announced the purchase of North America’s most significant Bitcoin mining hosting company, Whinstone US, Inc. The acquisition of Riot Blockchain includes all assets and Whinstone operations, including 300 megawatts of mining capacity.

According to the press release, Riot Blockchain purchased Whinstone for $80 million in cash and 11.8 million common shares of the mining company. According to the latest price, they worth is USD 48.37. The final cost of Whinstone would be around USD 651 million.

Among the assets and operations that Riot Blockchain leads are the Whinstone facilities in Rockdale, Texas. The facilities cover a vast area and three buildings where the company operates. The buildings have 190,000 square feet, and there is currently a fourth building under construction that will be 60,000 square feet.

The Rockdale, Texas site counts on 300 megawatts in developed mining capacity, but Riot believes it can scale it up to 450 megawatts for a total of 750 megawatts in bitcoin mining capacity.

The purchase transaction would get consolidated in the second quarter of 2021, all of this in the extension of customary closing conditions, including receipt of required regulatory clearances.

Riot Blockchain Expects to Reach a Good Hash Rate Next Year

In another statement, Riot Blockchain announced 42,000 S19J Antminers miners from Bitmain for $ 138.5 million. Purchases like these would make the company gain a mining capacity of 7.7 EH / s by the end of 2022.

The purchase of the miners by Riot Blockchain is due to the company’s strategic initiative to increase its hash rate. In this way, from a previous order where 26,100 S19 Pro and S19j Antminers were ordered, in October 2021, the company’s hash rate came to 4 EH / s.

Later in October, after the successful installation of the current order, a total 7.7 EH / S rate would find a new peak, which would be 4.8% of the full mining capacity of Bitcoin.

Indeed, Riot Blockchain has the capacity of surpassing significant players in this industry, such as, for example, Marathon, which reports a hash rate of 0.71 EH / s.

According to the CBIE (Cambridge Bitcoin Electricity Consumption Index), the United States owns 7.24% of the current bitcoin hash rate, while China exceeds 65.08%.

Currently, Riot Blockchain is acquiring miners from a previous order, and the current order would arrive in November 2021, with monthly installments of 3,500 S19J Antminer, until October 2022. By then, the company will have 81,150 miner Antminers of the 95% that will be from the latest generation S19 series.

The company will also consume approximately 257.6 megawatts of energy with an overall hash rate efficiency of 33 joules per terahash (J / TH) with the whole fleet deployed.

By: Jenson Nuñez

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