Riot Blockchain Buys Largest American Crypto Mining Site for $650 Million
The Nasdaq listed cryptocurrency mining firm Riot Blockchain has acquired a crypto mining site in Texas for $650 million.
The deal will see Riot Blockchain take control of Whinstone’s mining facility in Rockdale, Texas. Whinstone is owned by Munich Stock Exchange-listed data infrastructure company Northern Data after an acquisition in Nov 2019.
The transaction will see Riot Blockchain pay Northern Data 67 million euros (US$80 million) in cash and 11.8 million shares of common stock. When the deal is done, Northern Data will hold 12% of Riot Blockchain’s outstanding stock, according to Northern Data’s announcement.
The Texas facility will consume one gigawatt of electricity, and sits on 100 acres. Northern Data has touted it as the largest data center in North America, and the largest Bitcoin mining facility in the world.
Parts of the facility remain under construction, although Northern Data says operations have started there, according to Decrypt. The project was scheduled for completion by the end of 2020.
Texas, with its abundant wind energy and natural gas supplies, is a hotspot for crypto mining. Privately held mining giant Bitmain is also in Rockdale, while prominent startup Layer1 and London-listed Argo Blockchain are also in the state.