Riot Platforms to Acquire Rhodium Encore's Bitcoin Mining Assets for $185M

Riot Platforms has announced its intention to acquire the Bitcoin mining assets of Rhodium Encore for a total consideration of $185 million. This strategic move is aimed at enhancing Riot's mining capabilities and expanding its operational footprint. The acquisition targets Rhodium Encore's assets located at the Rockdale Facility in Texas, which is known for its robust infrastructure and strategic location. These assets are expected to bolster Riot's mining operations significantly.

The proposed transaction includes a combination of cash, the return of a power security deposit, and Riot shares. The total consideration of $185 million comprises $129.9 million in cash, a refund of Rhodium's $6.1 million power security deposit, and Riot shares worth $49 million. This financial structure allows Riot to leverage its existing resources while also providing Rhodium with a mix of immediate liquidity and long-term investment opportunities. The inclusion of Riot shares in the deal is a strategic move that aligns the interests of both companies, fostering a mutually beneficial partnership.

The acquisition is part of Riot Platforms' broader strategy to consolidate its position in the Bitcoin mining sector. By acquiring Rhodium Encore's assets, Riot aims to increase its hashrate, which is a measure of the computational power used in mining. A higher hashrate translates to a greater share of the Bitcoin network, enhancing Riot's competitive edge in the industry. The deal is expected to have a positive impact on Riot's operational efficiency and profitability. The advanced mining equipment and reliable power supply at the Rockdale Facility will enable Riot to mine Bitcoin more efficiently, reducing operational costs and increasing profitability. Additionally, the acquisition will allow Riot to expand its mining operations without the need for significant capital expenditure, as the infrastructure is already in place.

Following the completion of this transaction, Rhodium is expected to vacate its Rockdale facility within three business days, subsequently transferring all operational equipment to Riot. This move is part of a strategy to resolve ongoing litigation between the two firms. Riot’s subsidiary, Whinstone US, has entered into a non-binding agreement to purchase significant tangible assets, including ASIC mining equipment and a robust 125-megawatt power capacity. The proposed acquisition is subject to customary closing conditions and regulatory approvals. Riot Platforms has indicated that it is committed to completing the transaction as soon as possible, given the strategic importance of the deal. The company is confident that the acquisition will strengthen its position in the Bitcoin mining industry and drive long-term growth.