Riot Blockchain Acquires Whinstone’s Texas Bitcoin Mining Operations

The firm is acquiring the facility with the goal of “increasing the American footprint in the global bitcoin mining landscape.”

AccessTimeIconApr 8, 2021 at 1:53 p.m. UTC
Updated Sep 14, 2021 at 12:38 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

Nasdaq-listed mining company Riot Blockchain (NASDAQ: RIOT) is acquiring Whinstone US, Inc. data center operations in Texas from Northern Data AG.

Riot Blockchain said Thursday it has signed an agreement to acquire the firm's Texas operations for $80 million cash and 11.8 million shares of Riot stock at a total value of $651 million, with the goal of “increasing the American footprint in the global bitcoin mining landscape.”

Acquired in 2019 by Germany’s Northern Data AG, a developer and operator of high-performance computing (“HPC”) infrastructure solutions, Whinstone US operates a high-performance bitcoin mining facility based in Rockdale, Texas, with a 300-megawatt capacity, which can be rapidly expanded by an additional 450 MW, according to Riot Blockchain. 

“Riot will wholly own the largest bitcoin mining facility in North America, with very low power costs, and one of the most talented development teams in the industry, ” said Jason Les, CEO of Riot Blockchain.

Bitcoin mining synergies

Once the deal closes, Northern Data will own 12% of the total outstanding common stock of Riot Blockchain.

“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,” said Aroosh Thillainathan, CEO of Northern Data.

“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 [environmental, social and corporate governance]-focused strategy.” 

On Wednesday, Riot announced it had inked an agreement to purchase 42,000 mining machines from Bitmain Technologies, increasing the firm’s bitcoin mining hashrate by 93%.

At the time of publication Riot Blockchain shares were trading up 3.62% at $50.12 on Thursday.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.