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Riot Blockchain to Buy Largest US BTC Mining Facility for $ 650 Million

The $ 650 million deal sees Riot Blockchain acquire a major BTC farm owned by Northern Data AG.

Riot Blockchain continues its efforts to expand its Bitcoin (BTC) mining capabilities. Several pieces of news suggest that the US-based miner is preparing to purchase Whinstone US Inc, currently owned by Northern Data.

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The purchase was announced via a press release by Riot Blockchain on Thursday, and the US Bitcoin miner will pay $ 80 million in cash. The remainder will come from the sale of around 12% of its shares to Northern DAG.

Whinstone apparently operates the largest Bitcoin mining facility in the United States. Based in Texas, the Whinstone data center has a total capacity of 750 megawatts and is being expanded with an additional 300 MW.

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In fact, upon completion of the transaction, the Riot Blockchain is expected to become the largest publicly traded Bitcoin mining company in North America, based on operational capacity metrics.

For Riot Blockchain, buying Whinstone offers an opportunity for the company to increase its Bitcoin mining capacity. According to Riot CEO Jason Les, the future path of the Bitcoin miner is one that involves increasing US participation in the global BTC mining landscape.

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In its own announcement of the deal, Northern Data revealed that the sale of Whinstone to Riot Blockchain will not have a negative impact on its earnings before interest, taxes, depreciation and amortization. According to the Northern DAG statement, the company’s profitable multi-site strategy means that all previous EBITDA guidance for fiscal 2021 remains unchanged.

Whinstone’s planned purchase, worth $ 650 million, follows numerous inventory expansions by the US Bitcoin miner. In fact, Cointelegraph recently reported that Riot Blockchain purchased 42,000 Antminer rigs from Bitmain for approximately $ 138 million.

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Riot Blockchain has been pursuing a capacity expansion agenda of late with its hashing power growing nearly sixfold in 2020. The company’s efforts are indicative of further momentum from America-based Bitcoin miners. North to challenge China’s BTC hash rate dominance.

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