The deal is expected to close in the second quarter of 2021. Riot also entered into an agreement with Bitmain to supply 42,000 ASIC devices.
Mining company Riot Blockchain announced the upcoming purchase of rival Whinstone for $ 651 million. The parties have already signed legally binding documents, the deal will be paid for in cash and Riot shares, which are listed on the NASDAQ stock exchange.
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Under the terms of the deal, Riot acquires all of Whinstone’s assets and operations. The deal will be paid for with $ 80 million in cash and securities – Northern Data, which acquired Whinstone in 2020, will receive 11.8 million Riot shares and own 12% of the company. Based on Riot’s latest closing price of $ 48.37, the deal is valued at $ 651 million.
Whinstone owns and operates North America’s largest ASIC hosting site with 300 MW of computing power and an “attractive long-term power contract.” Riot says an additional 450 megawatts can be added “promptly” to Whinstone’s existing resources.
The deal with Northern Data is expected to close in the second quarter of 2021 – the companies will have to obtain the necessary regulatory approvals. After the takeover, Whinstone Riot will become the largest publicly traded mining company in the United States.
Riot also announced today that it has entered into an agreement with Bitmain to purchase 42,000 Antminer S19j ASICs for a total of $ 138.5 million. The hardware will ship in batches of 3,500 units between November 2021 and October 2022. Once fully deployed, Riot will have 7.7 million terahashes per second (TH / s) computing power, which corresponds to 4.6% of the current hash rate of the Bitcoin network.
Riot Blockchain is listed on the NASDAQ stock exchange. On the back of news about the takeover of Whinstone and the conclusion of a new contract with Bitmain, the company’s shares rose by more than 6% – now they are trading at $ 51.3 per share.
We will remind, earlier the financial holding JPMorgan announced that the Riot Blockchain securities will be included in the basket of shares of public companies, through which its clients can invest in the digital asset market. The basket also includes shares of Square, PayPal, NVIDIA, AMD, TSMC, Intercontinental Exchange, CME Group, Overstock, Silvergate and MicroStrategy.