Riot Blockchain Buys America's Largest Bitcoin Mining Facility for $651M

US-listed Riot Blockchain (Nasdaq: RIOT) is acquiring Whinstone US, Inc, a Texas-located data center operated by Northern Data AG, for a total of around $651 million, the Bitcoin mining company announced on Thursday.

Riot detailed that it will pay $80 million in cash for the deal along with a fixed 11.8 million common stocks of the company. The two companies have already signed the definitive terms for the acquisition deal.

North America's Largest Bitcoin Mining Facility

Whinstone is the largest known Bitcoin mining facility in North America. It has a total power capacity of 750 mW, but only 300 mW have been developed currently. Based in Rockdale, Texas, the facility spans across a 100-acre site and is Hosting Hosting Hosting refers to the location of a broker’s technology stack. This is one of the most crucial elements of a brokerage that helps prevent the company from losing money due to being unable to mitigate latency risks.Brokers or exchanges are traditionally very vulnerable to latency arbitrage due to the speed with which financial markets move. The traditional datacenter locations for forex brokers are all centered at Equinix facilities around the globe. What Are the World’s Foremost Data Centers?Sin Hosting refers to the location of a broker’s technology stack. This is one of the most crucial elements of a brokerage that helps prevent the company from losing money due to being unable to mitigate latency risks.Brokers or exchanges are traditionally very vulnerable to latency arbitrage due to the speed with which financial markets move. The traditional datacenter locations for forex brokers are all centered at Equinix facilities around the globe. What Are the World’s Foremost Data Centers?Sin Read this Term Bitcoin mining equipment in three buildings with a total area of 190,000 square feet. It is building another 60,000 square foot building.

The facility currently hosts Bitcoin mining operations for three institutional clients.

“The acquisition of Whinstone is the most significant achievement in Riot’s growth to date and positions Riot as an industry leader in Bitcoin mining,” Riot Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term CEO, Jason Les said in a statement.

“Riot will wholly own the largest Bitcoin mining facility in North America, with very low power costs, and one of the most talented development teams in the industry.”

He further detailed that the new facility will serve as the foundation of Riot’s Bitcoin mining operations as the company is aiming to increase its footprint in the country.

Germany’s Northern Data AG, which is reportedly approaching for a public listing, acquired Whinstone in 2019. The company will own 12 percent of Riot’s common stocks after the closure of the deal.

Meanwhile, Riot Blockchain has recently closed a deal with Chinese Bitcoin miner manufacturer giant, Bitmain to purchase 42,000 mining machines for a total value of around $138.5 million.