On March 22, reputable sources reported that Riot Blockchain, Inc., a notable player in the Bitcoin mining industry, has finalized a significant deal through its subsidiary, Whinstone US, Inc.. The agreement entails the acquisition of Rhodium Encore LLC for a total consideration of $185 million. This payment structure includes $129.9 million in cash, a $6.1 million rebate on Rhodium’s power deposit, and $49 million in Riot shares, specifically priced based on the volume-weighted average of the last ten trading days prior to the closing date.
As part of this strategic acquisition, Rhodium is set to transfer all tangible assets located at the Rockdale facility, such as the ASIC miners, and will clear the premises within three business days post-closing. Once the transaction is complete, Riot will leverage Rhodium’s 125 MW power capacity alongside the existing operational assets to bolster its self-mining capabilities. Furthermore, both firms will resolve all ongoing litigations and waive any future claims linked to this transaction, streamlining their legal standings moving forward.